New Jersey Resources Corporation (NJR)

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?

New Jersey Resources Corporation presents a compelling investment case based on its regulated utility business, supplemented by growth in clean energy ventures. 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 16.7 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 1.46 sits in the distress zone (elevated bankruptcy risk).
• 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 Opportunities Does NJR Have?

• Expansion of clean energy portfolio.
• Infrastructure modernization and upgrades.
• Strategic acquisitions.
• Growth in energy efficiency programs.

What Threats Does NJR Face?

• Changes in regulatory policies.
• Fluctuations in natural gas prices.
• Competition from other energy sources.
• Economic downturns.

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.

How New Jersey Resources Corporation Is Valued

New Jersey Resources Corporation carries a market capitalization of $5.70B, placing it in the mid-cap category. Relative to its peer group, NJR's quantitative score of 76/100 is roughly in line with the peer average of 70/100.

ROE 14%Key Financial Metrics

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 16.68, below the Utilities sector average of ~28x. 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.

F-Score 6/9Financial Health

New Jersey Resources Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.46 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project New Jersey Resources Corporation revenue of about $2.22B for fiscal 2026, with EPS near $3.52. The estimate reflects 4 contributing analysts.

Net buyingInsider Activity

Over the past six months, New Jersey Resources Corporation insiders filed 28 SEC Form 4 transactions — 13 sales and 15 purchases. On net that is roughly 5K shares acquired (about $645K) — insiders putting money in tends to read as conviction.

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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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