New Jersey Resources Corporation (NJR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

New Jersey Resources Corporation (NJR) Utility Operations & Dividend Profile

New Jersey Resources Corporation (NJR) is a diversified energy company providing regulated natural gas distribution and clean energy solutions, primarily in New Jersey. With a focus on sustainable energy investments and a strong customer base, NJR navigates the evolving energy landscape while maintaining a commitment to reliability and shareholder value.

What Is the Investment Thesis for NJR?

The company's stable revenue from natural gas distribution provides a solid foundation, while its investments in solar projects offer exposure to the expanding renewable energy market. With a P/E ratio of 14.67 and a dividend yield of 3.38%, NJR offers a blend of value and income. Ongoing investments in infrastructure and clean energy projects are expected to drive future growth. However, regulatory changes and commodity price volatility pose potential risks. The company's beta of 0.56 indicates lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

NJR Key Highlights

Serves approximately 564,000 residential and commercial natural gas customers in New Jersey, providing a stable revenue base.

• Operates in four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation, diversifying its revenue streams.
• Profit margin of 15.4% indicates efficient operations and profitability.
• Dividend yield of 3.38% offers an attractive income stream for investors.
• Beta of 0.56 suggests lower volatility compared to the overall market, making it a relatively stable investment.

Who Are NJR's Competitors?

NJR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NJR's Key Strengths?

Stable revenue from regulated natural gas distribution.

• Diversification into clean energy ventures.
• Strong presence in New Jersey.
• Experienced management team.

What Are NJR's Weaknesses?

Exposure to regulatory risks and changes.

• Dependence on natural gas prices.
• Limited geographic diversification.
• Capital-intensive business.

What Could Drive NJR Stock Higher?

Continued investments in clean energy projects are expected to drive revenue growth.

• Infrastructure modernization projects will improve efficiency and reduce operating costs.
• Potential regulatory approvals for new projects or rate adjustments.
• Expansion of energy efficiency programs will increase customer engagement and reduce energy consumption.

What Are the Key Risks for NJR?

Financial-distress signal — its Altman Z-Score of 1.36 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $1.5M recently.
• Changes in regulatory policies could impact profitability.
• Fluctuations in natural gas prices could affect margins.
• Competition from other energy sources could erode market share.
• Economic downturns could reduce energy demand.
• Weather-related events could disrupt operations and increase costs.

What Are the Growth Opportunities for NJR?

• Expansion of Clean Energy Ventures: NJR can expand its portfolio of solar projects in existing and new markets. The increasing demand for renewable energy, driven by government incentives and corporate sustainability goals, provides a significant growth opportunity. The market for solar energy is projected to grow substantially, offering NJR the potential to increase its revenue and profitability in this segment. Timeline: Ongoing.
• Infrastructure Investments: Ongoing investments in natural gas infrastructure to improve reliability and safety can drive growth. Modernizing the gas distribution network reduces leaks and enhances efficiency, leading to cost savings and improved customer satisfaction. These investments are crucial for maintaining regulatory compliance and ensuring the long-term viability of the natural gas business. Timeline: Ongoing.
• Strategic Acquisitions: NJR can pursue strategic acquisitions to expand its geographic footprint or diversify its service offerings. Acquiring other utility companies or renewable energy developers can accelerate growth and enhance its competitive position. Careful due diligence and integration are essential for successful acquisitions. Timeline: Potential.
• Energy Efficiency Programs: Expanding energy efficiency programs for residential and commercial customers can drive growth. Offering rebates and incentives for energy-efficient appliances and building upgrades can reduce energy consumption and lower customer bills. These programs align with sustainability goals and enhance NJR's reputation as an environmentally responsible company. Timeline: Ongoing.
• Development of Storage and Transportation Assets: Investing in natural gas storage and transportation facilities can enhance NJR's ability to manage supply and demand fluctuations. These assets provide flexibility and reliability in the energy market, allowing NJR to capitalize on arbitrage opportunities and ensure a stable supply of natural gas for its customers. Timeline: Potential.

What Are NJR's Competitive Advantages?

• Regulated Utility: The regulated nature of the natural gas distribution business provides a natural monopoly and a stable revenue stream.
• Geographic Footprint: Strong presence in New Jersey with a large customer base.
• Diversification: Diversification into clean energy ventures provides exposure to growth opportunities in the renewable energy market.
• Infrastructure: Investments in natural gas storage and transportation infrastructure provide a competitive advantage in managing supply and demand.

What Does NJR Do?

New Jersey Resources Corporation (NJR), incorporated in 1981 and headquartered in Wall, New Jersey, operates as an energy services holding company. The company's core business involves regulated natural gas distribution through its Natural Gas Distribution segment, serving approximately 564,000 residential and commercial customers across six counties in New Jersey. This segment also provides capacity and storage management services. NJR has expanded into clean energy through its Clean Energy Ventures segment, investing in and operating commercial and residential solar projects in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers wholesale energy management services and manages a portfolio of physical assets, including natural gas storage and transportation contracts. The Storage and Transportation segment focuses on investments in natural gas infrastructure. Additionally, NJR provides heating, ventilation, and cooling services, holds commercial real estate, and offers solar equipment installation and plumbing services. This diversification allows NJR to adapt to changing energy demands and market opportunities.

What Products and Services Does NJR Offer?

• Provides regulated natural gas distribution services to residential and commercial customers in New Jersey.
• Invests in, owns, and operates commercial and residential solar projects.
• Offers wholesale energy management services to other energy companies and natural gas producers.
• Maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts.
• Invests in natural gas transportation and storage facilities.
• Provides heating, ventilation, and cooling services.
• Offers solar equipment installation, and plumbing repair and installation services.

How Does NJR Make Money?

• Regulated natural gas distribution generates stable revenue through tariffs approved by regulatory authorities.
• Clean Energy Ventures generate revenue through the sale of electricity from solar projects.
• Energy Services segment generates revenue through wholesale energy management services and trading activities.
• Storage and Transportation segment generates revenue through fees for storage and transportation services.

What Industry Does NJR Operate In?

New Jersey Resources operates within the regulated gas and utilities sector, which is characterized by stable demand and regulated pricing. The industry is undergoing a transition towards cleaner energy sources, with increasing investments in renewable energy projects. Competitors like NI: NiSource Inc., UGI: UGI Corporation, and NFG: National Fuel Gas Company also operate in the regulated utility space. The market is influenced by factors such as regulatory policies, infrastructure investments, and commodity prices. NJR's diversification into clean energy positions it to capitalize on the growing demand for renewable energy solutions.

Who Are NJR's Key Customers?

• Residential customers who use natural gas for heating, cooking, and other purposes.
• Commercial customers, including businesses and institutions, that use natural gas for various operations.
• Other energy companies and natural gas producers who utilize NJR's energy management services.
• Municipalities and government entities.

Company Profile

New Jersey Resources Corporation operates in the Regulated Gas industry within the Utilities sector. It is headquartered in Wall, US. The company is led by CEO Stephen D. Westhoven. NJR has traded publicly since 1980.

New Jersey Resources Corporation Financial Trajectory

New Jersey Resources Corporation (NJR) reported $349.2M in revenue for Q3 FY2026, a decline of 62.8% compared to the prior quarter. The company recorded net income of $9.7M, with diluted EPS of $0.10. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, NJR averaged $0.90 in diluted EPS.

How New Jersey Resources Corporation Is Valued

New Jersey Resources Corporation carries a market capitalization of $5.38B, placing it in the mid-cap category. Analyst price targets span from $61.00 to $63.00, with a consensus of $61.67. At the current price of $53.34, that implies approximately 16% upside potential. Relative to its peer group, NJR's quantitative score of 65/100 is roughly in line with the peer average of 74/100.

Return on equity for New Jersey Resources Corporation stands at 13.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.3%, showing how much profit it generates from its asset base. NJR trades at a trailing price-to-earnings ratio of 14.67, below the Utilities sector average of ~16.60x. Its free cash flow yield is -2.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.94 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.0%, the inverse of the P/E and a quick read on earnings relative to price.

New Jersey Resources Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.36 places it in the distress zone, a signal of elevated financial risk.

New Jersey Resources Corporation has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 41.7% above estimates on average.

Over the past six months, New Jersey Resources Corporation insiders filed 8 SEC Form 4 transactions — 8 sales and 0 purchases. On net that is roughly 27K shares disposed (about $1.5M), a signal worth weighing alongside the fundamentals.

NJR Financials

NJR Latest News

NJR Analyst Consensus

NJR MoonshotScore

NJR Utilities Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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