GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » New Jersey Resources Corp (NYSE:NJR) » Definitions » Graham Number

New Jersey Resources (New Jersey Resources) Graham Number : $33.91 (As of Dec. 2023)


View and export this data going back to 1982. Start your Free Trial

What is New Jersey Resources Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-04-26), the stock price of New Jersey Resources is $43.30. New Jersey Resources's graham number for the quarter that ended in Dec. 2023 was $33.91. Therefore, New Jersey Resources's Price to Graham Number ratio for today is 1.28.

The historical rank and industry rank for New Jersey Resources's Graham Number or its related term are showing as below:

NJR' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1   Med: 1.44   Max: 2.26
Current: 1.28

During the past 13 years, the highest Price to Graham Number ratio of New Jersey Resources was 2.26. The lowest was 1.00. And the median was 1.44.

NJR's Price-to-Graham-Number is ranked worse than
60.05% of 408 companies
in the Utilities - Regulated industry
Industry Median: 1.15 vs NJR: 1.28

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


New Jersey Resources Graham Number Historical Data

The historical data trend for New Jersey Resources's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

New Jersey Resources Graham Number Chart

New Jersey Resources Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.02 25.56 21.56 34.71 35.19

New Jersey Resources Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.86 37.38 36.47 35.26 33.91

Competitive Comparison of New Jersey Resources's Graham Number

For the Utilities - Regulated Gas subindustry, New Jersey Resources's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


New Jersey Resources's Price-to-Graham-Number Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, New Jersey Resources's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where New Jersey Resources's Price-to-Graham-Number falls into.



New Jersey Resources Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

New Jersey Resources's Graham Number for the fiscal year that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*20.314*2.71)
=35.19

New Jersey Resources's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*20.948*2.44)
=33.91

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


New Jersey Resources  (NYSE:NJR) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

New Jersey Resources's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=43.30/33.91
=1.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


New Jersey Resources Graham Number Related Terms

Thank you for viewing the detailed overview of New Jersey Resources's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


New Jersey Resources (New Jersey Resources) Business Description

Traded in Other Exchanges
Address
1415 Wyckoff Road, Wall, NJ, USA, 07719
New Jersey Resources is an energy services holding company with regulated and nonregulated operations. Its regulated utility, New Jersey Natural Gas, delivers natural gas to more than 575,000 customers in the state. NJR's nonregulated businesses include solar investments primarily in New Jersey and investments in several large midstream natural gas projects.
Executives
Patrick J. Migliaccio officer: Senior VP and CFO 1415 WYCKOFF ROAD, WALL NJ 07719
Peter C Harvey director C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Stephen D Westhoven officer: Senior V.P., Subsidiary 1415 WYCKOFF ROAD, WALL NJ 07719
Stephen Skrocki officer: Corporate Controller and PAO C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Lori Delgiudice officer: SVP, Human Resources C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Michael A O'sullivan director C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Roberto Bel officer: SVP and CFO C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Degraffenreidt James H Jr director 1100 H ST NW, WASHINGTON DC 20080
Richard Reich officer: SVP, Gen Counsel and Corp Sec C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Timothy F. Shea officer: Vice President, Subsidiary C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Howard M William Jr director C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
M Susan Hardwick director C/O AMERICAN WATER WORKS COMPANY, INC., 1 WATER STREET, CAMDEN NJ 08102-1658
Donald L Correll director C/O INTERCHANGE FINANCIAL SERVICES CORP, PARK 80 W PLAZA TWO, SADDLE BROOK NJ 07663
Amy Cradic officer: SVP & COO Non-Utility Business C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Craig A Lynch officer: SVP, Subsidiary C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719