Sjw Group Stock Intrinsic Value – Analysts Set $63.00 Price Target and “Hold” Recommendation for SJW Group Stock

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SJW ($NYSE:SJW) Group is a water utility company that provides water supply and distribution services to residential, commercial, industrial, and municipal customers. The company operates in California, Texas, and Idaho, with a total of over 1 million customers. It also offers wastewater services and operates through its subsidiaries, including San Jose Water Company and Connecticut Water Service, Inc. Recently, SJW Group‘s stock has caught the attention of analysts, who have assigned it a price target of $63.00. This consensus price target was reached after three major brokerages covered the stock and provided their recommendations. All three analysts have given SJW Group a “Hold” rating, indicating that they believe the stock will perform in line with the overall market. This recommendation is based on the company’s current financial performance and future growth prospects. The analysts also took into consideration other factors such as industry trends and competition within the water utility sector. One of the key factors driving the “Hold” rating is the company’s solid financials. SJW Group has consistently reported strong earnings and revenue growth over the past few years. This growth can be attributed to the company’s expansion efforts and efficient cost management. Moreover, analysts are optimistic about SJW Group’s future growth potential. The company has several ongoing projects that aim to improve its infrastructure and expand its customer base. These initiatives are expected to drive revenue and earnings growth in the coming years.

However, there are also some potential risks that could impact SJW Group’s performance and influence its stock price. These risks include changes in government regulations, environmental concerns, and potential competition from other water utility companies. In conclusion, analysts have set a target price of $63.00 for SJW Group’s stock and recommend a “Hold” rating. The company’s strong financials and promising growth prospects make it an attractive investment option, but potential risks should also be considered. Investors should carefully evaluate these factors before making any decisions regarding SJW Group’s stock.

Price History

On Friday, SJW Group‘s stock opened at $56.22 and closed at $54.89, marking a decrease of 1.38% from the previous day’s closing price of $55.66. This price target and recommendation were based on various factors, including the company’s financial performance, market trends, and overall outlook. The analysts believe that SJW Group’s current stock price is in line with its valuation and see limited potential for significant gains in the short term. It is worth noting that the stock price for SJW Group has been relatively stable in recent months, with only minor fluctuations. This could be attributed to the company’s strong financials and consistent performance, which has instilled confidence in investors.

However, it is also important to consider potential risks and uncertainties in the market that could impact SJW Group’s stock performance. These include changes in regulatory policies, shifts in consumer demand, and overall economic conditions. Overall, while analysts have set a relatively high price target for SJW Group’s stock and recommend holding onto current positions, it is essential for investors to conduct their own research and carefully monitor market conditions before making any investment decisions. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sjw Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sjw Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sjw Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Sjw Group are shown below. More…

Analysis – Sjw Group Stock Intrinsic Value

After thoroughly examining the financials of SJW GROUP, we at GoodWhale have come to the conclusion that the company is currently undervalued in the market. Our analysis has shown that the fair value of SJW GROUP share is approximately $70.8, which is significantly higher than its current trading price of $54.89. This indicates that the stock is currently undervalued by 22.4%. We arrived at this fair value through our proprietary Valuation Line, which takes into account various factors such as the company’s financial performance, industry trends, and market conditions. Our thorough analysis has led us to believe that SJW GROUP’s stock has strong potential for future growth, and its current undervalued state presents a great buying opportunity for investors. In addition to its undervalued status, SJW GROUP also boasts strong financials. The company has a solid track record of consistent revenue and earnings growth, with a healthy balance sheet and strong cash flow. This further reinforces our belief in the company’s potential for future success. Furthermore, SJW GROUP operates in a stable and essential industry, providing water utility services to residential, commercial, and industrial customers. This offers a level of stability and predictability to the company’s financials, making it a desirable investment option. In conclusion, our analysis has shown that SJW GROUP is currently trading at a significant discount to its fair value. With its strong financials and stable industry presence, we believe that this stock has great potential for long-term growth. We recommend investors to consider adding SJW GROUP to their portfolio at its current undervalued price. More…

Peers

The SJW Group is one of the leading providers of water, wastewater, and energy services in the United States. They face competition from a number of other companies, including American States Water Co, WHA Utilities and Power PCL, and Taizhou Water Group Co Ltd. Each of these companies provides similar services in different areas, and all face the same challenges and opportunities in the industry.

– American States Water Co ($NYSE:AWR)

American States Water Co is a publicly traded water and wastewater service provider, based in San Dimas, California. The company has an impressive market cap of 3.5 billion as of 2022, which is indicative of the company’s high-performance in the market. Additionally, American States Water Co has a Return on Equity of 11.66%, indicating its favorable financial standing. This performance is further supported by the company’s strong financials and efficient operations. The company is also committed to providing safe and reliable water and wastewater services to customers throughout the United States.

– WHA Utilities and Power PCL ($SET:WHAUP)

WHA Utilities and Power PCL is a Thai energy company dedicated to providing reliable and sustainable energy solutions. It has a market capitalization of 15.68 billion baht as of 2022, which is a measure of its value on the stock market. The company has a Return on Equity (ROE) of 4.32%, which indicates its ability to generate a profit from its shareholders’ investments. This metric is considered to be a good indicator of how efficiently the company is utilizing its resources. WHA Utilities and Power PCL has a wide customer base, providing services such as electricity, water, and wastewater treatment. The company has also expanded into renewable energy sources and is committed to reducing the environmental impact of its operations.

– Taizhou Water Group Co Ltd ($SEHK:01542)

TaiZhou Water Group Co Ltd is a Chinese company that specializes in the production and distribution of water and related services. The company has a market cap of 524M as of 2022, which is a significant increase from its market cap of 321M in 2020. This indicates that the company has seen an impressive growth in its stock price over the past two years. Additionally, the company has a Return on Equity of 10.58%, which is a strong indicator of the company’s profitability and efficiency. This is due to the company’s commitment to providing quality products and services to its customers, as well as its focus on innovation and cost-efficiency.

Summary

SJW Group is currently receiving a “Hold” recommendation from three analysts who cover the stock. This suggests that there may not be significant growth potential in SJW Group in the near future, but it is still considered a viable investment option. Investors should continue to monitor the company’s performance and financials to make informed decisions about their investments.