GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU
South Jersey Industries Inc (NYSE:SJIU)
[1]
[5]$ 41.09
Utilities - Regulated - Utilities - Diversified
Market Cap: $ 0 Mil
South Jersey Industries Inc is an energy services holding company. The company through its subsidiaries provides regulated natural gas service to residential, commercial, and industrial customers in United States.
Valuation Rank
Score: 8 /10CurrentIndustry MedianHistorical Median
PE Ratio27.7916.5620.54
Forward P/E13.7416.35N/A
PB Ratio1.471.552.11
PS Ratio1.371.651.94
P/FCFN/A13.20186.74
Shiller P/E19.117.3122.54
PEG Ratio7.132.317.31
Valuation Analysis
% of Price
Price41.09
Dividend & Ownership
Dividend Yield(ttm) %N/A
Dividend Yield(forward) %N/A
PayoutN/A
Dividend Growth(5y) %3.1
Yield on Cost(5y) %N/A
Continuous Div. sinceN/A
Insider Ownership %N/A
Institution Ownership %N/A
Financial Strength
Score: 3 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.010.270.01
Equity-to-Asset0.260.370.29
Interest Coverage2.444.464.01
Piotroski F-Score665
Profitability Rank
Score: 6 /10CurrentIndustry MedianHistorical Median
Operating Margin %16.4214.1114.54
Net Margin %4.068.3510.86
ROE %4.278.7010.56
ROA %1.112.953.01
ROC (Joel Greenblatt) %6.899.536.76
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)3.14.98.3
EBITDA Growth (%)2.93.98.8
Oprt. Income Growth (%)3.44.24.4
EPS w/o NRI Growth (%)N/AN/A-38.1
Free Cash Flow Growth (%)-30.1-27.3N/A
Book Value Growth (%)4.85.10.5
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue262486674312366
Net Income-1069129-97-26
EPS00000
Revenue (YoY) %0.134.8726.2519.9539.79
Net Income (YoY) %-70.1174.8627.273569.12151.2
EPS (YoY) %----------
Free Cash Flow-62-8493-84-109
Cash & Equiv.1034308825
Current Assets355507489527572
Short-Term Debt & CLO740739314116209
Current Liabilities11041164753590819
Total Liabilities46775022497149385188
Stockholders Equity16281661173718871829
Warning Signs
SEVEREFinancial Strength: Poor
SEVEREAltman Z-Score: Distress
SEVERELong-Term Debt: Keep issuing new debt
SEVEREAsset Growth: faster than revenue growth
As of 12-05-2021
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-0.27-1.21
1M-12.31-2.43
3M7.370.40
6M18.388.98
YTD15.1022.46
1Y-6.7825.39
3Y--19.60
5Y--17.70
10Y--15.98
57.72
12.57
32.58
252061
126030.5
2011201220132014201520162017201820192020CurrentPerformance
--------------------48.89Highest Stock Price
--------------------32.07Lowest Stock Price
----------------------Market Cap
----------------------Shares Outstanding-Diluted
19.1316.9521.8620.1815.4721.6N/A132.3839.2613.327.79PE Ratio
--------------------1.47PB Ratio
2.062.22.452.211.692.4921.431.871.361.37PS Ratio
13.414.6319.9515.0712.1311.0627.9723.1218.9712.2713.56EV-to-EBITDA
2011201220132014201520162017201820192020TTMPer Share Data
----------------------Revenue per Share
----------------------Earnings per Share
----------------------Free Cash Flow per Share
----------------------Dividends per Share
----------------------Tangible Book per Share
----------------------Median PS Value
----------------------Graham Number
2011201220132014201520162017201820192020TTMIncome Statement
828.6706.3731.4887959.61036.51243.11641.31628.61541.41837.5Revenue
270.4274.9249.3336.6384438377.1553.8559.3643.6671.2Gross Profit
32.638.934.1384042.330.333.734.341.836.5Gross Margin %
148.8165179.7209227.1243.8277363.1350.5363.9369.5Total Operating Expense
121.6109.969.6127.6156.9194.2100.1190.6208.8279.6301.6Operating Income
14.715.69.514.416.418.78.111.612.818.116.4Operating Margin %
89.391.681.697105.1118.8-3.517.776.915774.7Net Income
10.81311.210.91111.5-0.31.14.710.24.1Net Margin %
137.212180.6139.4166.4199.319.9103.1205.4290.2312.5EBIT
185176.1145.5217.9257.4309.1143.4236.1338.8460.8447.2EBITDA
1513.510.41110.712.7-0.31.45.710.24.3ROE %
4.13.82.93.13.13.9-0.10.41.32.41.1ROA %
2011201220132014201520162017201820192020Sep21Balance Sheet
7.54.63.84.23.91.47.8306.43425.4Cash & Equivalents
175.6269.8304.2321.2223.1100.2266.7400.1324336.4260.3Total Receivables
2247.52631.42924.93349.43471.92551.93865.15956.66365.36689.17024Total Assets
323.6363.9374.9395.6461.2320.2410.21004.41316.6739.2208.6Short-Term Debt & CLO
446.8623701.1879.2997.4423.211232106.92070.12776.43195.9Long-Term Debt & CLO
1623.41895.22097.924172434.417122672.74689.64941.65022.35188Total Liabilities
624.1736.2827932.41037.5839.91192.412671423.81660.91828.6Total Stockholders Equity
624.1736.2827932.41037.5839.91192.412671423.81666.91836Total Equity
2011201220132014201520162017201820192020TTMCashflow Statement
191.4117.8159.5161.3186.7262.6190.3143.6121.1311.6331.4Cash Flow from Operations
-224.2-355.9-245.8-375-387.3-280.3-287.3-1788.8-477.6-507.8-644.6Cash Flow from Investing
---------------7.1---2.4-2.8Repurchase of Stock
69.2215.789.6197.6190.9-134.7192.81566.1271.2121.6119.9Net Issuance of Debt
38235.285.4214183.6-3.1104.71637.2353.3209.6328.4Cash Flow from Financing
5.2-2.9-0.80.4-17-20.77.8-8-3.313.515.1Net Change in Cash
-193.1-253.8-316.6-342.6-343.9-279.4-273-341.1-504.2-486.5-515.1Capital Expenditure
-1.8-136-157.1-181.2-157.2-16.8-82.6-197.5-383.2-174.8-183.8Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:UTLUnitil Corp3667017.781.417.882.418.81
NAS:OEGOrbital Energy Group Inc32149At Loss1.60-64.44-40.94-93.27
OTCPK:ARAOAuraSource Inc3110At Loss0.000.00-1528.300.00
NYSE:SJIUSouth Jersey Industries Inc36027.791.374.061.114.27
NYSE:NWE000At Loss
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Poor (3/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.01

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.26

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 1.86

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 6

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 4.57% vs ROIC : 3.62%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Profitability[3] (Annual data, as of Dec. 2020) : Fair (6/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $366 Mil vs Net Income : $-26 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $25 Mil vs Long-Term Debt* : $3,196 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : -2.45%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $0.00

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.00

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.00

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $41.09)


PE Ratio without NRI : 24.72

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 0.00

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 1.21

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 0.00

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 18.49

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Financial Strength : Poor

South Jersey Industries Inc displays poor financial strength. Usually this is caused by too much debt for the company.

Altman Z-Score : Distress

Altman Z-score of 0.73 is in distress zone. This implies bankrupcy possibility in the next two years.

Long-Term Debt : Keep issuing new debt

South Jersey Industries Inc keeps issuing new debt. Over the past 3 years, it issued USD 198.131 million of debt.

Asset Growth : faster than revenue growth

If a company builds asset at 20.2% a year, faster than its revenue growth rate of 4.9% over the past 5 years, it means that the company may be getting less efficent.

Medium Warning Signs

Interest Coverage : Low

Ben Graham prefers companies interest coverage is at least 5. South Jersey Industries Inc interest coverage is 2.44, which is low.

Dividend Payout Ratio : Too high

If a company dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of South Jersey Industries Inc is 1.59, which seems too high.

Operating Income : loss

South Jersey Industries Inc has recorded a loss in operating income at least once over the past 3 years.

ROIC vs. WACC : Return on invested capital is less than weighted average cost of capital.

Companys's return on invested capital is less than weighted average cost of capital. It might not be capital efficient
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NAS:MGEEMGE Energy Inc4/100.110.430.625.0862.070.005.045.13
NAS:OTTROtter Tail Corp4/100.000.350.915.4871.700.003.956.69
NYSE:ALEALLETE Inc3/100.030.370.872.0160.980.004.642.87
OTCPK:ARAOAuraSource Inc3/100.01-103.77-0.510.0020.00-102.6514.84-28.43
NYSE:AVAAvista Corp3/100.010.311.202.4160.780.005.003.38
NYSE:BKHBlack Hills Corp3/100.000.301.652.7740.910.004.274.69
NAS:OEGOrbital Energy Group Inc3/100.210.540.600.003-1.03-0.705.68-46.88
NYSE:SJIUSouth Jersey Industries Inc3/100.010.261.862.4460.730.004.573.62
NYSE:UTLUnitil Corp3/100.020.291.232.8260.930.004.644.03

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NAS:MGEEMGE Energy Inc7/1020.4418.6710.894.760.007.73-2.303.30-2.70
NYSE:ALEALLETE Inc6/1010.2711.526.682.500.003.41-6.80-2.20-0.30
NYSE:AVAAvista Corp6/1017.6511.187.572.390.005.24-4.50-2.002.00
NYSE:BKHBlack Hills Corp6/1022.5012.969.292.870.006.88-3.80-2.201.20
NAS:OTTROtter Tail Corp6/1018.9413.1916.065.480.009.970.603.808.70
NYSE:SJIUSouth Jersey Industries Inc6/1016.424.064.271.110.006.890.6038.100.00
NYSE:UTLUnitil Corp6/1017.037.888.812.410.006.08-0.90-0.701.40
NAS:OEGOrbital Energy Group Inc2/10-81.45-64.44-93.27-40.940.00-185.6415.10-15.90-18.10
OTCPK:ARAOAuraSource Inc1/100.000.000.00-1528.300.00-2700.000.0020.6020.60

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
OTCPK:ARAOAuraSource IncAt Loss0.000.000.000.000.000.000.00-5.840.00
NAS:OEGOrbital Energy Group IncAt Loss1.611.600.000.001.140.000.00-26.880.00
NYSE:BKHBlack Hills Corp17.011.562.217.950.001.120.001.514.89-7.97
NYSE:AVAAvista Corp17.541.321.972.560.001.120.001.035.15-2.67
NYSE:UTLUnitil Corp17.781.521.417.560.000.970.001.106.12-2.95
NAS:OTTROtter Tail Corp19.432.922.564.270.001.523.541.635.725.15
NYSE:ALEALLETE Inc20.751.382.393.100.001.100.001.133.23-6.03
NAS:MGEEMGE Energy Inc25.152.664.713.210.001.310.001.724.222.69
NYSE:SJIUSouth Jersey Industries Inc27.791.471.370.000.000.000.000.005.152.88
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Per Share Data



Per Share Data

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
----------------------------------------------------------------Total Debt per Share

Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
10.59
17.08
13.48
15.44
10.98
11.97
14.95
13.47
10.44
11.03
10.67
12.66
-0.34
1.44
5.72
10.18
4.27
ROE %
2.91
4.74
4.01
4.63
3.25
3.45
4.13
3.76
2.94
3.09
3.08
3.94
-0.11
0.36
1.25
2.41
1.11
ROA %
10.59
17.08
13.48
15.44
10.98
11.97
14.95
13.47
10.44
11.03
10.84
12.87
-0.34
2.05
12.27
18.74
7.17
Return-on-Tangible-Equity
2.91
4.74
4.01
4.63
3.25
3.45
4.13
3.76
2.94
3.09
3.1
3.96
-0.11
0.39
1.41
2.7
1.24
Return-on-Tangible-Asset
9.84
15.05
12.8
15.09
10.37
10.11
10.38
8.1
4.6
6.85
7.18
9.03
0.85
3.25
5.21
6.67
6.89
ROC (Joel Greenblatt) %
8.71
13.34
11.03
12.38
8.67
8.84
8.87
6.65
3.89
5.98
6.48
8.51
0.79
2.8
4.56
5.71
5.36
ROCE %
4.48
6.58
5.65
6.01
4.04
4.27
4.38
3.89
3.24
3.89
4.42
4.05
0.79
3.49
2.35
3.4
3.62
ROIC %
5.89
5.08
5.33
2.64
4.14
4.07
3.92
4.05
5.09
6
4.99
5.2
3.8
5.46
5.03
4.18
4.57
WACC %
--
--
--
4.91
3.41
3.51
3.27
2.16
1.83
2.51
2.31
2.86
4.75
3.89
3.52
3.43
3.67
Effective Interest Rate on Debt %
--
--
--
29.37
29.81
27.96
32.64
38.92
34.08
37.95
40.02
42.25
30.34
33.74
34.34
41.75
36.53
Gross Margin %
9.58
15.65
13.55
15.96
13.14
12.59
14.68
15.56
9.52
14.39
16.35
18.73
8.06
11.62
12.82
18.14
16.42
Operating Margin %
4.32
7.67
6.51
8
6.87
7.21
10.78
12.97
11.16
10.94
10.95
11.46
-0.28
1.08
4.72
10.19
4.06
Net Margin %
-5.91
-5.14
9.65
-3.7
7.79
-0.84
-0.21
-19.26
-21.48
-20.43
-16.38
-1.62
-6.65
-12.04
-23.53
-11.34
-- FCF Margin %
1.19
1.25
0.99
1.11
1
1.23
1.23
1.34
1.3
1.37
1.41
0.89
1.29
2.46
2.38
2.12
1.86
Debt-to-Equity
0.27
0.28
0.32
0.29
0.31
0.28
0.28
0.28
0.28
0.28
0.3
0.33
0.31
0.21
0.22
0.25
0.26
Equity-to-Asset
0.33
0.35
0.31
0.32
0.31
0.34
0.34
0.38
0.37
0.38
0.42
0.29
0.4
0.52
0.53
0.53
0.49
Debt-to-Asset
0.73
0.72
0.69
0.71
0.69
0.73
0.72
0.72
0.72
0.72
0.7
0.67
0.69
0.79
0.78
0.75
0.74
Liabilities-to-Assets
67.48
61.79
61.65
17.01
14.1
13.41
12.51
11.27
8.97
10.73
11.26
14.54
11.75
11.28
9.08
9.86
10
Gross-Profit-to-Asset %
0.68
0.62
0.62
0.58
0.47
0.48
0.38
0.29
0.26
0.28
0.28
0.34
0.39
0.33
0.26
0.24
0.27
Asset Turnover
50.04
50.15
43.84
44.31
56.73
67.45
74.01
85.41
112
104
81.83
43.91
40.14
60.03
66.24
63.03
51.86
Days Sales Outstanding
--
--
--
59.45
75.07
79.18
104
147
172
177
146
67.52
67.43
117
110
99.37
72.89
Days Payable
--
--
--
81.05
86.65
49.32
47.46
54.89
44.94
41.76
39.53
21.9
13.76
19.28
20.05
19.78
13.97
Days Inventory
50.04
50.15
43.84
65.91
68.31
37.59
17.2
-6.49
-14.57
-30.89
-24.32
-1.71
-13.53
-37.38
-23.4
-16.56
-7.06
Cash Conversion Cycle
--
--
--
4.5
4.21
7.4
7.69
6.65
8.12
8.74
9.23
16.66
26.53
18.93
18.2
18.45
26.13
Inventory Turnover
--
--
--
0.71
0.7
0.72
0.67
0.61
0.66
0.62
0.6
0.58
0.7
0.66
0.66
0.58
0.63
COGS-to-Revenue
0.11
0.15
0.14
0.16
0.17
0.1
0.09
0.09
0.08
0.07
0.07
0.04
0.03
0.04
0.04
0.03
0.02
Inventory-to-Revenue
0.1
0.08
0.06
0.06
0.13
0.18
0.23
0.36
0.43
0.39
0.36
0.27
0.22
0.21
0.31
0.32
0.28
Capex-to-Revenue
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Financial Satement



Income Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
906
931
956
962
845
925
829
706
731
887
960
1037
1243
1641
1629
1541
1838
Revenue
--
--
--
679
593
666
558
431
482
550
576
599
866
1088
1069
898
1166
Cost of Goods Sold
906
931
956
283
252
259
270
275
249
337
384
438
377
554
559
644
671
Gross Profit
--
--
--
29.37
29.81
27.96
32.64
38.92
34.08
37.95
40.02
42.25
30.34
33.74
34.34
41.75
36.53
Gross Margin %
819
786
827
129
141
142
149
165
180
209
227
244
277
363
351
364
370
Other Operating Expense
819
786
827
129
141
142
149
165
180
209
227
244
277
363
351
364
370
Total Operating Expense
86.82
146
130
154
111
116
122
110
69.64
128
157
194
100
191
209
280
302
Operating Income
9.58
15.65
13.55
15.96
13.14
12.59
14.68
15.56
9.52
14.39
16.35
18.73
8.06
11.62
12.82
18.14
16.42
Operating Margin %
--
--
--
-25.68
-18.99
-21.9
-24.08
-18.99
-18.83
-29.56
-31.62
-31.45
-54.02
-90.3
-114
-119
-124
  Interest Expense
--
--
--
-25.68
-18.99
-21.9
-24.08
-18.99
-18.83
-29.56
-31.62
-31.45
-54.02
-90.3
-114
-119
-124
Net Interest Income
-19.43
-23.87
-23.91
0.89
1.41
4.55
15.64
11.1
10.98
11.82
9.51
5.09
-80.26
-87.5
-3.4
10.56
10.82
Other Income (Expense)
67.39
122
106
129
93.53
99.15
113
102
61.79
110
135
168
-34.14
12.85
90.94
172
189
Pre-Tax Income
-27.62
-49.68
-43.06
-51.95
-34.3
-28.81
-22.5
-11.48
19.01
-4.45
-1.36
-54.15
24.94
-0.56
-21.06
-22.66
-34.28
Tax Provision
40.98
40.75
40.73
40.36
36.68
29.06
19.88
11.25
-30.77
4.05
1.01
32.27
73.05
4.36
23.16
13.2
18.16
Tax Rate %
39.77
72.25
62.66
76.95
58.3
67.29
89.86
92.78
82.39
97.63
106
119
-3.4
17.9
77.19
157
75.43
Net Income (Continuing Operations)
-0.67
-0.82
-0.39
-0.25
-0.43
-0.63
-0.57
-1.17
-0.8
-0.58
-0.5
-0.25
-0.09
-0.24
-0.27
-0.26
-0.36
Net Income (Discontinued Operations)
--
--
--
0.23
0.23
--
--
--
--
--
--
--
--
--
--
--
-0.39
  Other Income (Minority Interest)
39.1
71.43
62.27
76.93
58.11
66.65
89.29
91.61
81.59
97.05
105
119
-3.49
17.66
76.92
157
74.68
Net Income
4.32
7.67
6.51
8
6.87
7.21
10.78
12.97
11.16
10.94
10.95
11.46
-0.28
1.08
4.72
10.19
4.06
Net Margin %
86.82
146
130
154
113
121
137
121
80.62
139
166
199
19.88
103
205
290
312
EBIT
26.84
30.83
32.87
35.67
39.45
44.69
47.76
55.09
64.89
78.51
91.04
110
123
133
133
171
135
Depreciation, Depletion and Amortization
114
177
162
190
152
166
185
176
146
218
257
309
143
236
339
461
447
EBITDA

Cashflow Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
39.1
71.43
62.27
76.95
58.3
67.29
89.86
92.78
82.39
97.63
106
119
-3.4
17.9
77.19
157
75.43
Net Income From Continuing Operations
26.84
30.83
32.87
35.67
39.45
44.69
47.76
55.09
64.89
78.51
91.04
110
123
133
133
171
135
Depreciation, Depletion and Amortization
-37
37.86
-5.23
-14.29
-28
-72.25
89.12
-59.7
-67.83
-14.32
92.62
-67.16
0.02
-106
92.61
-48.58
--   Change In Receivables
-33.5
-25.73
21.46
-48.6
68.59
32.42
1.91
13.48
-2.45
-4.79
9.23
0.39
5.59
0.57
6.18
--
--   Change In Inventory
--
--
--
-7.02
-4.82
-10.48
5.4
--
--
--
--
--
--
--
--
--
--   Change In Prepaid Assets
56.04
-57.89
-5.04
14.02
-8.21
37.6
-6.13
18.83
49.44
27.43
-103
112
58.86
114
-138
49.98
--   Change In Payables And Accrued Expense
-15.25
-8.4
37.53
-30.61
12.02
14.99
-43.25
-5.78
44.46
-29.8
22.52
-4.84
-62.21
19.25
-57.8
-45.39
--   Change In Other Working Capital
-29.71
-54.15
48.72
-86.5
39.58
2.27
47.04
-33.17
23.63
-21.48
20.96
40.59
2.26
27.91
-96.72
-43.99
-- Change In Working Capital
19.03
21.83
12.03
23.01
21.92
28.9
23.3
20.31
-21.55
1.67
3.86
55.79
10.08
10.39
21.54
21.84
-- Deferred Tax
--
--
--
1.26
1.48
2.05
2.51
2.99
3
1.89
2.21
3.89
4.25
4.14
5.21
5.8
-- Stock Based Compensation
--
--
--
--
--
--
--
3.51
--
--
--
--
91.3
105
10.75
--
-- Asset Impairment Charge
-0.49
1
0.34
-1.03
0.49
-1.19
-0.96
-0.82
-0.98
-0.36
-1.03
-0.04
-0
0.01
--
0
-- Cash from Discontinued Operating Activities
-15.45
-41.87
-8.37
-22.97
13.97
15.09
-18.15
-22.85
8.15
3.47
-35.92
-66.47
-37.65
-155
-30.3
0.04
121
Cash Flow from Others
39.33
29.07
148
26.39
175
159
191
118
160
161
187
263
190
144
121
312
331
Cash Flow from Operations
-92.91
-76.95
-55.54
-61.97
-109
-167
-193
-254
-317
-343
-344
-279
-273
-341
-504
-486
-515
Purchase Of Property, Plant, Equipment
--
--
--
--
--
--
3.5
0.03
--
0.05
--
--
3.55
311
26.94
--
-- Sale Of Property, Plant, Equipment
--
--
--
-2.97
-8.44
-4.75
-23.04
-39.43
-2.97
--
-20.23
-12.94
-29.64
-1750
-8.82
-113
-74.43
Purchase Of Business
--
--
--
7.47
0.18
--
2.34
--
--
--
3.13
4.75
--
311
42.54
120
-- Sale Of Business
--
-14.82
--
-13.09
-4.73
-6.49
-56.81
--
--
--
-6.06
--
--
-11.34
--
--
-- Purchase Of Investment
5.36
1.45
17.11
8.63
31.28
2.9
54.01
--
--
--
--
1.74
--
--
--
--
-- Sale Of Investment
0.47
-0.65
-4.94
-34.02
-23.88
-103
-11.05
-62.67
73.83
-32.49
-20.31
5.58
11.79
-308
-34.09
-28.31
-55.04
Cash From Other Investing Activities
-87.07
-90.97
-43.37
-95.95
-115
-279
-224
-356
-246
-375
-387
-280
-287
-1789
-478
-508
-645
Cash Flow from Investing
31.88
6.61
7.48
2.08
--
--
13.44
70.24
54.03
80.68
63.19
214
--
174
189
200
330
Issuance of Stock
-1.69
--
--
--
--
--
--
--
--
--
--
--
--
-7.15
--
-2.41
-2.83
Repurchase of Stock
41.75
84.91
--
119
--
169
94.2
253
115
329
316
61
500
2433
1008
1050
710
  Issuance of Debt
--
--
-78.7
-25.43
-26.11
-11.22
-25.04
-36.79
-25.41
-131
-125
-196
-308
-866
-737
-928
-590
  Payments of Debt
41.75
84.91
-78.7
93.83
-26.11
158
69.15
216
89.59
198
191
-135
193
1566
271
122
120
Net Issuance of Debt
-24.4
-26.87
-29.66
-32.91
-36.43
-40.48
-44.98
-50.94
-57.68
-63.87
-70.16
-82.38
-87.31
-94.76
-107
-115
-- Cash Flow for Dividends
-0.18
0.3
0.14
0.67
0.3
0.62
0.38
0.18
-0.5
-0.39
-0.33
-0.39
-0.75
-0.78
--
5.01
-118
Other Financing
47.36
64.95
-101
63.66
-62.24
118
37.99
235
85.44
214
184
-3.05
105
1637
353
210
328
Cash Flow from Financing
-0.39
3.05
3.75
-5.9
-1.95
-1.46
5.17
-2.9
-0.82
0.35
-16.99
-20.73
7.79
-8.02
-3.3
13.45
15.15
Net Change in Cash
-92.91
-76.95
-55.54
-61.97
-109
-167
-193
-254
-317
-343
-344
-279
-273
-341
-504
-486
-515
Capital Expenditure
-53.58
-47.88
92.31
-35.58
65.88
-7.82
-1.76
-136
-157
-181
-157
-16.8
-82.64
-198
-383
-175
-184
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Financial Satement


Balance Sheet

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
4.88
7.93
11.68
5.78
3.82
2.36
7.54
4.64
3.82
4.17
3.88
1.36
7.82
30.03
6.42
34.05
25.42
  Cash And Cash Equivalents
--
--
--
63.2
--
--
--
--
--
--
--
--
--
--
--
--
--   Marketable Securities
4.88
7.93
11.68
68.98
3.82
2.36
7.54
4.64
3.82
4.17
3.88
1.36
7.82
30.03
6.42
34.05
25.42
Cash, Cash Equivalents, Marketable Securities
138
118
112
122
141
201
135
195
254
252
178
71.01
202
338
254
279
272
  Accounts Receivable
--
--
--
--
0.5
1.18
2.75
39.5
8.91
14.66
14.93
--
4.91
1.95
5.38
2.85
4.34
  Notes Receivable
59.07
39.4
48.3
47.15
58.6
72.46
37.62
35.01
41.74
54.7
29.79
29.18
59.39
60.7
64.99
54.84
-16.28
  Other Current Receivables
197
157
160
169
200
274
176
270
304
321
223
100
267
400
324
336
260
Total Receivables
122
148
127
175
107
73.52
71.62
58.14
60.58
65.37
59.3
12.54
52.75
62.17
55.32
42
66.39
  Inventories, Other
122
148
127
175
107
73.52
71.62
58.14
60.58
65.37
59.3
12.54
52.75
62.17
55.32
42
66.39
Total Inventories
37.64
58.54
29.88
22.11
57.75
73.54
85.83
62.26
114
176
145
35.72
112
171
267
94.37
220
Other Current Assets
362
372
328
435
368
424
341
395
483
567
431
150
439
663
653
507
572
Total Current Assets
--
--
--
37.92
13.66
23.11
38.49
83.36
86.99
77.27
31.79
--
62.33
76.16
87.13
106
36.19
Investments And Advances
1125
1186
1237
1294
1408
1555
1736
1987
2303
2625
2997
2424
3393
4493
4931
5413
5750
  Other Gross PPE
1125
1186
1237
1294
1408
1555
1736
1987
2303
2625
2997
2424
3393
4493
4931
5413
5750
Gross Property, Plant and Equipment
-247
-266
-288
-311
-335
-361
-384
-409
-444
-491
-549
-471
-693
-840
-858
-949
-1008
  Accumulated Depreciation
877
920
949
983
1073
1193
1352
1578
1859
2134
2448
1953
2700
3653
4074
4464
4741
Property, Plant and Equipment
--
--
--
--
--
--
--
--
--
--
30.43
--
3.58
735
702
707
707
Intangible Assets
--
--
--
--
--
--
--
--
--
--
8.88
--
3.58
735
702
707
707
  Goodwill
202
281
252
338
327
436
516
575
496
571
530
449
660
829
850
905
968
Other Long Term Assets
1080
1201
1201
1358
1414
1653
1907
2237
2442
2783
3041
2402
3426
5293
5713
6182
6452
Total Long-Term Assets
1442
1573
1529
1793
1782
2077
2248
2631
2925
3349
3472
2552
3865
5957
6365
6689
7024
Total Assets
179
102
101
120
124
165
154
193
260
273
186
35.03
285
410
232
257
301
  Accounts Payable
--
--
--
5.51
6.52
6.71
3.17
2.16
3.23
2.33
2.34
0.86
2.93
5.88
2.24
6.03
5.47
  Total Tax Payable
--
--
--
-0
--
--
--
--
--
0
-0
45.37
--
-0
--
--
34.02
  Other Current Payables
77.53
124
109
6.52
6.21
7.26
6.41
6.64
6.36
7.09
7.32
5.37
9.08
14.21
13.58
21.14
36.44
  Current Accrued Expense
257
226
210
132
137
179
163
202
269
282
196
86.63
297
431
248
284
377
Accounts Payable & Accrued Expense
150
197
118
238
232
362
324
364
375
396
461
320
410
1004
1317
739
209
  Short-Term Debt
150
197
118
238
232
362
324
364
375
396
461
320
410
1004
1317
739
209
Short-Term Debt & Capital Lease Obligation
--
--
--
5.84
6.08
5.44
25.91
17.76
15.55
17.96
20.15
45.82
43.66
33.83
35
36.38
38.6
  Current Deferred Revenue
--
--
--
25.01
19.9
3.28
--
10.81
--
--
--
--
--
--
--
--
--   Current Deferred Taxes Liabilities
--
--
--
30.85
25.98
8.72
25.91
28.57
15.55
17.96
20.15
45.82
43.66
33.83
35
36.38
38.6
DeferredTaxAndRevenue
-0
--
--
99.21
84.44
90.55
75.23
57.25
105
154
155
57.22
132
112
132
104
195
Other Current Liabilities
406
423
328
500
479
641
588
652
765
850
832
510
883
1581
1732
1164
819
Total Current Liabilities
319
358
358
333
313
340
424
601
680
859
997
423
1123
2107
2070
2776
3196
  Long-Term Debt
--
--
--
--
--
--
22.55
21.65
20.66
19.66
--
--
--
--
--
--
--   Long-Term Capital Lease Obligation
319
358
358
333
313
340
447
623
701
879
997
423
1123
2107
2070
2776
3196
Long-Term Debt & Capital Lease Obligation
1.19
1.25
0.99
1.11
1
1.23
1.23
1.34
1.3
1.37
1.41
0.89
1.29
2.46
2.38
2.12
1.86
Debt-to-Equity
--
--
--
80.84
69.14
71.68
109
105
57.37
115
76.07
81.8
102
110
114
135
129
PensionAndRetirementBenefit
2.8
2.47
2.15
186
217
260
295
289
319
345
296
469
86.88
85.84
92.17
150
173
NonCurrent Deferred Liabilities
320
346
360
177
160
195
184
226
255
228
232
228
478
806
933
798
871
Other Long-Term Liabilities
641
707
720
777
759
866
1035
1243
1333
1567
1602
1202
1790
3109
3210
3859
4369
Total Long-Term Liabilities
1048
1130
1048
1277
1237
1507
1623
1895
2098
2417
2434
1712
2673
4690
4942
5022
5188
Total Liabilities
36.23
36.66
37.01
37.16
37.25
37.34
37.77
39.57
40.89
85.42
88.71
5.85
99.44
107
115
126
141
Common Stock
134
174
206
250
272
297
342
382
406
439
474
533
420
343
313
356
263
Retained Earnings
223
232
-10.32
-24.2
-19.47
-21.81
-28.44
-31.11
-20.76
-30.26
-24.5
-14.93
-36.77
-26.1
-32.56
-38.22
-38.19
Accumulated other comprehensive income (loss)
--
--
248
252
255
257
273
346
401
438
499
316
710
843
1028
1218
1464
Additional Paid-In Capital
--
--
-0.19
-0.18
-0.18
-0.18
-0.19
-0.18
-0.19
-0.33
-0.3
--
-0.27
-0.29
-0.29
-0.32
-0.28
Treasury Stock
--
-0
--
--
0
--
--
0
--
0
0
-0
--
-0
--
-0
-- Other Stockholders Equity
394
443
481
515
544
570
624
736
827
932
1038
840
1192
1267
1424
1661
1829
Total Stockholders Equity
0.39
0.46
0.44
1.19
0.96
--
--
--
--
--
--
--
--
--
--
6
7.46
Minority Interest
394
443
482
516
545
570
624
736
827
932
1038
840
1192
1267
1424
1667
1836
Total Equity
0.27
0.28
0.32
0.29
0.31
0.28
0.28
0.28
0.28
0.28
0.3
0.33
0.31
0.21
0.22
0.25
0.26
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Valuation Ratios



Valuation Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
21.12
13.7
17.19
15.45
19.68
23.79
19.13
16.95
21.86
20.18
15.47
21.6
N/A
132
39.26
13.3
27.79
PE Ratio
20.81
13.53
17.03
15.39
19.48
23.48
19
16.72
21.69
20.05
15.37
21.6
N/A
132
39.26
13.3
27.79
PE Ratio without NRI
--
--
11.57
--
17.32
--
--
--
--
--
--
--
--
--
--
--
-- Price-to-Free-Cash-Flow
21.05
33.62
7.23
45.09
6.52
9.95
8.93
13.17
11.24
12.13
8.68
9.81
13.05
16.35
25.14
6.71
7.49
Price-to-Operating-Cash-Flow
0.91
1.05
1.12
1.24
1.35
1.71
2.06
2.2
2.45
2.21
1.69
2.49
2
1.43
1.87
1.36
1.37
PS Ratio
7.79
2.51
2.14
2.11
3.05
8.18
--
11.15
--
--
6.22
2.15
--
--
--
16.22
7.13
PEG Ratio
1.44
1.64
1.6
1.75
1.99
2.46
2.99
3.65
3.97
3.7
3.26
3.3
3.23
3.33
3.95
3.67
3.3
EV-to-Revenue
11.51
8.65
9.44
8.88
11.05
13.74
13.4
14.63
19.95
15.07
12.13
11.06
27.97
23.12
18.97
12.27
13.56
EV-to-EBITDA
15.08
10.48
11.83
10.93
14.92
18.82
18.07
21.29
36.01
23.56
18.77
17.16
202
52.92
31.29
19.49
19.41
EV-to-EBIT
6.63
9.54
8.45
9.15
6.7
5.31
5.53
4.7
2.78
4.24
5.33
5.83
0.5
1.89
3.2
5.13
5.15
Earnings Yield (Joel Greenblatt) %
-0.12
3.54
7.98
6.49
6.55
2.67
0.59
0.48
-8.96
-7.03
-5.71
4.29
0.59
-13
-15.27
-8.34
2.88
Forward Rate of Return (Yacktman) %
27.2
28.78
27.24
26.27
23.51
27.07
26.29
21.48
22.62
22.73
17.11
23.78
23.72
22.74
27.03
16.95
19.1
Shiller PE Ratio

Valuation and Quality

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
1.36
1.48
1.65
1.48
1.37
1.34
1.29
1.01
0.94
0.98
0.9
1.73
0.91
0.53
0.6
0.59
0.73
Altman Z-Score
5
5
5
5
4
6
5
5
5
7
4
7
5
5
6
6
6
Piotroski F-Score
0.69
0.69
0.6
0.67
0.61
0.71
0.67
0.77
0.72
0.75
0.74
0.46
1.07
1.13
0.81
0.81
0.76
Scaled Net Operating Assets
6.02
8.48
-2.76
8.17
-0.12
8.96
5.43
12.53
5.74
9.28
8.81
5.35
2.42
27.92
6.81
5.28
5.52
Sloan Ratio %
0.89
0.88
1
0.87
0.77
0.66
0.58
0.61
0.63
0.67
0.52
0.29
0.5
0.42
0.38
0.44
0.7
Current Ratio
0.59
0.53
0.61
0.52
0.55
0.55
0.46
0.52
0.55
0.59
0.45
0.27
0.44
0.38
0.34
0.4
0.62
Quick Ratio
0.01
0.02
0.04
0.14
0.01
--
0.01
0.01
--
--
--
--
0.01
0.02
--
0.03
0.03
Cash Ratio
N/A
N/A
N/A
5.98
5.85
5.32
5.05
5.79
3.7
4.32
4.96
6.17
1.85
2.11
1.82
2.36
2.44
Interest Coverage
2.67
5.38
7.96
7.28
6.38
2.87
-0.54
1.5
-6.2
-2.24
2.47
10.04
6.34
-6.31
-8.86
0.82
3.9
5-Year EBITDA Growth Rate
03/03/06
03/01/07
02/29/08
03/02/09
03/01/10
03/01/11
02/28/12
02/28/13
02/28/14
02/27/15
02/29/16
02/27/17
02/26/18
02/28/19
02/27/20
02/25/21
  Filing Date
03/01/07
02/29/08
03/02/09
03/01/10
03/01/11
02/28/13
02/28/14
02/27/15
02/29/16
02/27/17
02/26/18
02/28/19
02/27/20
02/25/21
02/25/21
02/25/21
  Restated Filing Date
02/24/11
02/28/12
02/28/13
02/28/14
02/27/15
02/29/16
02/24/17
02/23/18
02/28/19
02/27/20
02/25/21
  Earnings Release Date
--
--
7715
7458
7324
7130
7100
7078
6924
6907
6745
6646
6517
6248
6011
5828
5828
Number of Shareholders
636
611
604
602
617
650
675
700
700
700
720
750
760
1100
1100
1130
1167
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 05, 2021
South Jersey Industries Inc (NYSE:SJIU)
www.gurufocus.com/stock/NYSE:SJIU

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

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