Fact based stock research
South Jersey Industries (NYSE:SJI)

US8385181081

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

South Jersey Industries stock research in summary

sjindustries.com

ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), South Jersey Industries (Gas Utilities, USA) shares have above-average financial characteristics compared with similar stocks. Shares of South Jersey Industries are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives), and are riskily financed (Safety Rank of 27, which means above-average debt burdens) but show above-average growth (Growth Rank of 99). ...read more

RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on South Jersey Industries's financial characteristics. As the company South Jersey Industries shows low value with an Obermatt Value Rank of 43 (57% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 99% of comparable companies (Obermatt Growth Rank is 99). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 27 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for South Jersey Industries, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	43
Growth Rank	99
Safety Rank	27
Combined Rank	53

Country	USA
Industry	Gas Utilities
Index
Size class	Large

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: South Jersey Industries

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	57	93	43	43
GROWTH
GROWTH	10	91	99	99
SAFETY
SAFETY	13	11	21	27
SENTIMENT
SENTIMENT	n/a	84	53	^new
360° VIEW
360° VIEW	n/a	95	53	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better South Jersey Industries is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	57	93	43	43
GROWTH
GROWTH	10	91	99	99
SAFETY
SAFETY	13	11	21	27
COMBINED
COMBINED	13	79	53	53

Last update of combined financial performance: 16-Mar-2023. Stock analysis on combined financial performance: The higher the rank of South Jersey Industries the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), South Jersey Industries shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for South Jersey Industries. Price-to-Sales (P/S) is 70, which means that the stock price compared with what market professionals expect for future sales is lower than 70% of comparable companies, indicating a good value concerning to South Jersey Industries's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 23, meaning that dividends are expected to be lower than for 77% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 59% of alternatives (only 41% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 69% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on South Jersey Industries's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in South Jersey Industries could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, South Jersey Industries looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	55	90	70	70
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	85	31	31
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	51	75	41	41
DIVIDEND YIELD
DIVIDEND YIELD	80	53	31	23
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	57	93	43	43

Last update of Value Rank: 16-Mar-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of South Jersey Industries; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 99 (better than 99% compared with alternatives) for 2023, South Jersey Industries shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for South Jersey Industries. Sales Growth has a value of 97, which means that, currently, professionals expect the company to grow more than 97% of its competitors. The same is valid for Profit Growth with a value of 72 and for Capital Growth with 95. In addition, Stock Returns had an above-average rank value of 83, which means they have been higher than 83% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 99, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, South Jersey Industries exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	15	43	71	97
PROFIT GROWTH
PROFIT GROWTH	100	63	75	72
CAPITAL GROWTH
CAPITAL GROWTH	n/a	82	85	95
STOCK RETURNS
STOCK RETURNS	47	79	81	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	10	91	99	99

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of South Jersey Industries.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company South Jersey Industries has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of South Jersey Industries is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for South Jersey Industries. Liquidity is at 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 3, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 97% of its competitors. Leverage is also high at a rank of 18, which means that the company has an above-average debt-to-equity ratio. It has more debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), South Jersey Industries has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	10	16	18
REFINANCING
REFINANCING	19	35	1	3
LIQUIDITY
LIQUIDITY	4	34	86	84
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	13	11	21	27

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of South Jersey Industries and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	77	8	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	81	83	^new
MARKET PULSE
MARKET PULSE	n/a	36	64	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	84	53	^new

Last update of Sentiment Rank: 9-Mar-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for South Jersey Industries.
Upgrade to a Premium Account to access the latest ranks.