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1. Company Snapshot

1.a. Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services.The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation.The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets.


The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York.The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada.The Storage and Transportation segment invests in natural gas transportation and storage facilities.


It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities.The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

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1.b. Last Insights on NJR

New Jersey Resources Corporation's recent performance was driven by strong fiscal 2024 fourth-quarter and year-end results, with consolidated net income of $289.8 million, or $2.94 per share, and consolidated net financial earnings (NFE) of $290.8 million, or $2.95 per share. The company's quarterly dividend of $0.45 per share, raised for the 29th consecutive year, also contributed to its positive performance. Additionally, the company's stable fundamentals, responsibly capitalized balance sheet, and operational expertise are expected to drive its performance in 2025.

1.c. Company Highlights

2. NJR's Fiscal 2025 Results Exceed Expectations, Guidance Raises Growth Prospects

New Jersey Resources (NJR) reported strong fiscal 2025 results, with actual EPS coming in at $0.16, beating estimates of $0.15. The company's net financial earnings per share (NFEPS) guidance for fiscal 2026 is between $3.03 and $3.18, consistent with its long-term 7% to 9% growth rate. NJR's revenue growth is expected to continue, with analysts estimating a 9.8% increase next year. The company's P/E Ratio stands at 14.62, indicating a relatively reasonable valuation. Additionally, the Dividend Yield is 3.74%, making it an attractive option for income-seeking investors.

Publication Date: Nov -23

📋 Highlights
  • Guidance Exceeded & Growth Consistency: Achieved 5th consecutive year of exceeding earnings guidance with FY2026 NFEPS outlook of $3.03–$3.18, aligning with 7–9% annual growth targets.
  • Major Capital Investment Plan: $5 billion in 5-year CapEx (2026–2030), with 60% ($3 billion) allocated to New Jersey Natural Gas (NJN) infrastructure.
  • CEV Solar Expansion: Added 93 MW of new commercial solar capacity, expanding Clean Energy Ventures’ portfolio to 479 MW, with >50% in-service capacity growth planned in 2 years.
  • Storage & Transportation Growth: S&T segment to more than double net financial earnings by 2027, driven by Adelphia/Leaf River recontracting and 70%+ FERC-approved capacity expansion.

Segment Performance and Growth Drivers

NJR's business segments are well-positioned for growth, with New Jersey Natural Gas (NJN) expected to drive high single-digit rate base growth through 2030. Storage & Transportation (S&T) is expected to more than double net financial earnings by 2027, driven by favorable recontracting of Adelphia and Leaf River. Clean Energy Ventures (CEV) expects to grow in-service capacity by more than 50% over the next two years, with a strong project pipeline designed to maintain investment tax credits through strategic safe harboring.

Capital Expenditure and Funding

NJR plans to invest approximately $5 billion over the next five years, with 60% allocated to NJN. The company's 5-year capital expenditure (CapEx) outlook is $4.8 billion to $5.2 billion through fiscal 2030, representing a 40% increase over the previous 5 years. NJR expects to maintain a solid balance sheet, with an adjusted FFO to adjusted debt ratio projected to remain around 20% for the next 5 years, with no block equity needed.

Valuation and Growth Prospects

NJR's EV/EBITDA ratio stands at 11.34, indicating a reasonable valuation relative to its earnings. The company's ROIC is 5.7%, and ROE is 14.26%, indicating a decent return on investment. With a Net Debt / EBITDA ratio of 4.77, NJR's debt levels appear manageable. The company's growth outlook is driven by its capacity expansion trajectory, particularly through solar projects and infrastructure investments, targeting 4.8% to 5.2% EPS growth through 2030.

Upside Potential and Risk Factors

NJR sees upside potential in its business, driven by executable projects and potential policy initiatives. The company's focus on affordability efforts, including energy efficiency programs and SAVEGREEN, aims to reduce customer costs. The recontracting assumption is based on existing contracts, not estimates of forward value, providing a relatively stable outlook. NJR has the capacity for M&A and organic growth, with a focus on bolt-on acquisitions that fit its business.

3. NewsRoom

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AXQ Capital LP Makes New $295,000 Investment in NewJersey Resources Corporation $NJR

Nov -25

Source: defenseworld.net

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Top 2 Utilities Stocks That May Fall Off A Cliff This Quarter

Nov -24

Source: benzinga.com

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New Jersey Resources Corporation (NJR) Q4 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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New Jersey Resources (NJR) Beats Q4 Earnings and Revenue Estimates

Nov -19

Source: zacks.com

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New Jersey Resources Reports Fiscal 2025 Fourth-Quarter and Year-End Results

Nov -19

Source: businesswire.com

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New Jersey Resources: 30 Years Of Dividend Growth Faces A New Regulatory Era

Nov -17

Source: seekingalpha.com

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New Jersey Resources Announces Executive Leadership Changes

Nov -12

Source: businesswire.com

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Teacher Retirement System of Texas Has $1.20 Million Stock Position in NewJersey Resources Corporation $NJR

Nov -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.38%)

6. Segments

Natural Gas Distribution

Expected Growth: 6.5%

New Jersey Resources Corporation's 6.5% growth in Natural Gas Distribution is driven by increasing demand from residential and commercial customers, infrastructure expansion, and strategic acquisitions. Additionally, favorable regulatory environments, investments in energy efficiency, and a growing focus on clean energy solutions contribute to the segment's growth.

Energy Services

Expected Growth: 6.0%

New Jersey Resources Corporation's Energy Services segment growth of 6.0% is driven by increasing demand for natural gas infrastructure, strategic acquisitions, and expansion of energy efficiency programs. Additionally, favorable regulatory environments and growing adoption of clean energy solutions contribute to the segment's growth.

Clean Energy Ventures

Expected Growth: 8.0%

Clean Energy Ventures' 8.0% growth is driven by increasing adoption of renewable energy sources, favorable government policies and incentives, rising demand for energy storage solutions, and strategic investments in solar and wind projects. Additionally, New Jersey Resources Corporation's diversified energy portfolio and strong operational efficiency contribute to the segment's growth.

Storage and Transportation

Expected Growth: 5.5%

New Jersey Resources Corporation's Storage and Transportation segment growth of 5.5% is driven by increasing demand for natural gas infrastructure, strategic acquisitions, and expansion of existing pipeline networks. Additionally, favorable regulatory environments and growing adoption of clean energy sources contribute to the segment's growth.

Home Services and Other

Expected Growth: 6.8%

The 6.8% growth in Home Services and Other segment of New Jersey Resources Corporation is driven by increasing demand for energy-efficient solutions, strategic acquisitions, and expansion of service offerings. Additionally, favorable weather conditions, infrastructure investments, and a strong economy in New Jersey contribute to the segment's growth.

7. Detailed Products

Natural Gas Distribution

New Jersey Resources Corporation provides natural gas distribution services to residential, commercial, and industrial customers through its subsidiary, New Jersey Natural Gas.

Clean Energy Ventures

The company invests in and develops clean energy projects, including solar and wind farms, to generate renewable energy.

Energy Services

New Jersey Resources Corporation offers energy management services, including energy efficiency solutions and energy procurement, to commercial and industrial customers.

Home Services

The company provides home services, including heating and cooling system installations, maintenance, and repair, through its subsidiary, NJR Home Services.

Midstream Assets

New Jersey Resources Corporation owns and operates midstream assets, including natural gas transportation and storage facilities.

Energy Storage

The company invests in energy storage solutions, including battery storage systems, to support the integration of renewable energy sources.

8. New Jersey Resources Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for New Jersey Resources Corporation is moderate, as there are alternative energy sources available to customers, but the company's diversified energy portfolio and strong brand presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as New Jersey Resources Corporation is a large energy provider with a diverse customer base, making it difficult for individual customers to negotiate prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as New Jersey Resources Corporation relies on a diverse range of suppliers for its energy resources, but the company's scale and market presence give it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low, as the energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as New Jersey Resources Corporation operates in a highly competitive energy market with several established players, leading to intense competition for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.30%
Debt Cost 4.45%
Equity Weight 37.70%
Equity Cost 7.12%
WACC 5.46%
Leverage 165.22%

11. Quality Control: New Jersey Resources Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
New Jersey Resources

A-Score: 6.7/10

Value: 6.7

Growth: 4.3

Quality: 5.3

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
ONE Gas

A-Score: 6.3/10

Value: 5.9

Growth: 4.4

Quality: 4.7

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
NiSource

A-Score: 6.3/10

Value: 5.0

Growth: 3.3

Quality: 4.7

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Atmos Energy

A-Score: 6.1/10

Value: 4.3

Growth: 4.9

Quality: 5.4

Yield: 4.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Southwest Gas Holdings

A-Score: 5.9/10

Value: 4.2

Growth: 5.2

Quality: 3.5

Yield: 7.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
New Fortress Energy

A-Score: 3.7/10

Value: 9.8

Growth: 6.4

Quality: 2.5

Yield: 3.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.08$

Current Price

45.08$

Potential

-0.00%

Expected Cash-Flows