📊 NJR Key Takeaways
Is New Jersey Resources Corp. (NJR) a Good Investment?
NJR demonstrates strong profitability with 27.8% net margins and double-digit net income growth, but faces significant cash flow challenges with negative free cash flow of -$273M and critically low liquidity. While typical for utilities in heavy investment phases, the combination of $2.4M cash reserves, 0.83x current ratio, and weak asset returns (5% ROE) presents material financial stress.
Profitability is improving with double-digit YoY EPS and net income growth and strong operating and net margins. However, cash generation is weak relative to earnings, liquidity is tight (sub-1x current ratio), and capex-driven negative FCF alongside modest interest coverage constrains financial flexibility. Fundamentals look stable for a regulated gas distributor, but leverage and cash conversion temper near-term upside.
Why Buy New Jersey Resources Corp. Stock? NJR Key Strengths
- Strong profitability margins (40.6% operating, 27.8% net margin)
- Solid revenue (+9.9% YoY) and net income growth (+15.8% YoY) with improving EPS (+14.0%)
- Stable regulated utility business model in natural gas distribution sector
- Solid YoY EPS and net income growth
- High operating and net margins indicating efficient operations
- Large asset base supporting regulated returns and growth projects
NJR Stock Risks: New Jersey Resources Corp. Investment Risks
- Severely negative free cash flow (-$273.3M) with CapEx ($300M) far exceeding operating cash flow ($26.7M)
- Critical liquidity crisis: current ratio 0.83x (below 1.0), only $2.4M cash on $7.9B asset base
- Weak asset efficiency (5.0% ROE, 1.5% ROA) despite substantial capital base
- Moderate leverage (1.32x debt/equity) with marginal interest coverage (2.8x); limited debt capacity
- Cash burn rate unsustainable without continuous external financing
- Negative free cash flow due to high capex and weak OCF
- Tight liquidity with current/quick ratio at 0.83x
- Leverage and modest interest coverage (2.8x) heighten refinancing risk
Key Metrics to Watch
- Free cash flow trajectory and operating cash flow growth rate
- Liquidity position: cash balance, current ratio, refinancing access
- Capital expenditure levels and infrastructure investment requirements
- Operating cash flow as percentage of revenue; capital intensity trend
- Debt-to-equity ratio, interest coverage ratio, and debt maturity schedule
- Operating cash flow vs net income (cash conversion)
- Interest coverage
New Jersey Resources Corp. (NJR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NJR Profit Margin, ROE & Profitability Analysis
NJR vs Utilities Sector: How New Jersey Resources Corp. Compares
How New Jersey Resources Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is New Jersey Resources Corp. Stock Overvalued? NJR Valuation Analysis 2026
Based on fundamental analysis, New Jersey Resources Corp. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
New Jersey Resources Corp. Balance Sheet: NJR Debt, Cash & Liquidity
NJR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: New Jersey Resources Corp.'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.71 reflects profitable operations.
NJR Revenue Growth, EPS Growth & YoY Performance
NJR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $359.0M | $122.5M | $1.21 |
| Q3 2025 | $209.9M | -$11.6M | $-0.12 |
| Q2 2025 | $433.2M | $89.4M | $1.22 |
| Q1 2025 | $321.2M | $89.4M | $0.91 |
| Q3 2024 | $199.3M | $1.5M | $0.02 |
| Q2 2024 | $384.4M | $89.4M | $1.13 |
| Q1 2024 | $321.2M | $89.4M | $0.91 |
| Q3 2023 | $199.3M | $1.5M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
New Jersey Resources Corp. Dividends, Buybacks & Capital Allocation
NJR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for New Jersey Resources Corp. (CIK: 0000356309)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NJR
What is the AI rating for NJR?
New Jersey Resources Corp. (NJR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NJR's key strengths?
Claude: Strong profitability margins (40.6% operating, 27.8% net margin). Solid revenue (+9.9% YoY) and net income growth (+15.8% YoY) with improving EPS (+14.0%). ChatGPT: Solid YoY EPS and net income growth. High operating and net margins indicating efficient operations.
What are the risks of investing in NJR?
Claude: Severely negative free cash flow (-$273.3M) with CapEx ($300M) far exceeding operating cash flow ($26.7M). Critical liquidity crisis: current ratio 0.83x (below 1.0), only $2.4M cash on $7.9B asset base. ChatGPT: Negative free cash flow due to high capex and weak OCF. Tight liquidity with current/quick ratio at 0.83x.
What is NJR's revenue and growth?
New Jersey Resources Corp. reported revenue of $440.9M.
Does NJR pay dividends?
New Jersey Resources Corp. pays dividends, with $47.7M distributed to shareholders in the trailing twelve months.
Where can I find NJR SEC filings?
Official SEC filings for New Jersey Resources Corp. (CIK: 0000356309) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NJR's EPS?
New Jersey Resources Corp. has a diluted EPS of $1.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NJR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, New Jersey Resources Corp. has a HOLD rating with 64% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NJR stock overvalued or undervalued?
Valuation metrics for NJR: ROE of 5.0% (sector avg: 10%), net margin of 27.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NJR stock in 2026?
Our dual AI analysis gives New Jersey Resources Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NJR's free cash flow?
New Jersey Resources Corp.'s operating cash flow is $26.7M, with capital expenditures of $300.0M. FCF margin is -62.0%.
How does NJR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 27.8% (avg: 12%), ROE 5.0% (avg: 10%), current ratio 0.83 (avg: 0.8).