Sjw Group Intrinsic Value – Discover the Compelling Reasons to Invest in SJW Group Stock for Long-Term Growth and Stability

September 11, 2024

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SJW ($NYSE:SJW) Group is a publicly traded water utility company in the United States, providing water and related services to customers in various states. With a market capitalization of over $2 billion, SJW Group has become a popular choice among investors looking for long-term growth and stability. One of the most compelling reasons to invest in SJW Group stock is its consistent focus on delivering essential services to its customers. Water is a fundamental need for every individual and business, making it a recession-proof industry. This means that even during economic downturns, SJW Group’s services will remain in demand, providing a stable source of revenue for the company. Furthermore, SJW Group has been strategically investing in expanding its operations and acquiring other water utility companies. These investments not only increase the company’s customer base but also drive growth and create opportunities for further expansion. In addition to its strong financial performance and strategic investments, SJW Group is also committed to sustainable practices.

The company has implemented various initiatives to reduce its carbon footprint, conserve water resources, and promote environmental stewardship. This commitment to sustainability not only benefits the environment but also enhances the company’s reputation and attracts socially responsible investors. Another factor that makes SJW Group an attractive investment is its stable dividend history. This provides investors with a steady stream of income and adds to the overall attractiveness of SJW Group as a long-term investment option. With its focus on providing essential services, strategic investments, commitment to sustainability, and stable dividend history, SJW Group offers investors a promising opportunity for growth and a valuable addition to their portfolios. As the demand for water services continues to rise, SJW Group is well-positioned to capitalize on this growing market and deliver strong returns for its shareholders.

Price History

However, one company that has caught the attention of many investors is SJW Group. On Friday, the company’s stock opened at $59.68 and closed at $58.91, representing a slight decrease of 0.59% from the prior day’s closing price of $59.26. The company has consistently reported strong earnings and revenue growth over the years, making it an attractive option for long-term investors. Moreover, SJW Group has a diversified business portfolio, with operations in the water utility and real estate industries. This diversification provides a level of stability to the company’s earnings, as it is not solely reliant on one source of income.

In addition, the company’s water utility business is considered essential, providing a steady stream of revenue regardless of the economic climate. The company has a solid balance sheet, with low levels of debt and a healthy cash position. Furthermore, SJW Group has a history of shareholder-friendly practices, such as consistently paying dividends and implementing share buyback programs. These actions not only provide a potential source of income for investors but also demonstrate management’s commitment to creating value for shareholders. With a strong financial performance, diversified business portfolio, and shareholder-friendly practices, SJW Group is well-positioned for future success, making it a promising investment opportunity. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

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

    Total Revenues Net Income Net Margin
    670.36 85.3 12.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

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

    Operations Investing Financing
    196.15 -244.33 78.35
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

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

    Total Assets Total Liabilities Book Value Per Share
    4.35k 3.11k 38.52
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

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

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    5.9% 8.3% 23.4%
    FCF Margin ROE ROA
    -11.6% 8.0% 2.3%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Sjw Group Intrinsic Value

    After conducting a thorough analysis of SJW GROUP, it is clear that this company’s overall wellbeing is strong. As a water utility company, SJW GROUP provides an essential service to its customers and has a stable revenue stream. Additionally, the company’s financials show consistent growth and profitability, indicating a strong and sustainable business model. In terms of valuation, our proprietary Valuation Line places the intrinsic value of SJW GROUP’s shares at approximately $70.8. This takes into account the company’s financial performance, industry trends, and potential for future growth. Currently, SJW GROUP’s stock is trading at $58.91. This means that it is undervalued by 16.8% according to our calculations. This presents a potential buying opportunity for investors looking to add this stock to their portfolio. Considering the strong fundamentals and undervaluation of SJW GROUP, it appears to be a solid investment option. However, as with any investment, it is important for investors to conduct their own research and consider their risk tolerance before making any decisions. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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, a water utility and services provider in the US, is a promising investment opportunity due to its growth potential and strategic investments. With a stable and essential service like water, the company has a steady stream of revenue, making it a reliable long-term investment.

    Additionally, SJW’s strategic investments in infrastructure and technology will further enhance its efficiency and profitability. The company’s recent merger with Connecticut Water Service also provides an opportunity for expansion and increased market share. Overall, adding SJW Group stock to one’s portfolio could prove to be a smart decision for investors looking for stable and sustainable growth.

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