Tuesday, July 31, 2007 10:07:41 PM
We rate SJW CORP (SJW) a BUY. This is driven by several positive factors, which we believe should have a
greater impact than any weaknesses, and should give investors a better performance opportunity than most
stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid
stock price performance, notable return on equity and largely solid financial position with reasonable debt
levels by most measures. We feel these strengths outweigh the fact that the company has had sub par
growth in net income.
HIGHLIGHTS
SJW's revenue growth trails the industry average of 41.8%. Since the same quarter one year prior, revenues
rose by 15.6%. This growth in revenue does not appear to have trickled down to the company's bottom line,
displayed by a decline in earnings per share.
Compared to its closing price of one year ago, SJW's share price has jumped by 30.00%, exceeding the
performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over
the last year has already helped drive it to a level which is relatively expensive compared to the rest of its
industry. We feel, however, that other strengths this company displays justify these higher price levels.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be
construed as a modest strength in the organization. Compared to other companies in the Water Utilities
industry and the overall market on the basis of return on equity, SJW CORP has outperformed in comparison
with the industry average, but has underperformed when compared to that of the S&P 500.
SJW's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry
average, implying that the management of the debt levels should be evaluated further. Regardless of the
somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.20 is sturdy.
SJW CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to
its performance from the same quarter a year ago. This company has reported somewhat volatile earnings
recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year,
SJW CORP increased its bottom line by earning $2.09 versus $1.19 in the prior year. For the next year, the
market is expecting a contraction of 43.1% in earnings ($1.19 versus $2.09).
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and VXF (S)
Recent SJW News
- SJW Group Announces First Quarter 2024 Financial Results • Business Wire • 04/25/2024 11:42:00 PM
- SJW Group Sets Date for Release of 2024 First Quarter Financial Results • Business Wire • 04/16/2024 12:00:00 PM
- Nazan Riahei Joins SJW Group as Vice President of Communications • Business Wire • 04/15/2024 01:25:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:03:48 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 12:55:19 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 12:45:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 12:14:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:58:55 PM
- Tanya Moniz-Witten Joins San Jose Water as President • Business Wire • 03/04/2024 09:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 09:16:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 09:10:23 PM
- SJW Group Announces 2023 Financial Results • Business Wire • 02/22/2024 03:06:00 AM
- Texas Water Company Files Application To Acquire 3009 Water Company • Business Wire • 02/21/2024 01:30:00 PM
- SJW Group Sets Date for Release of 2023 Financial Results and Announcement of 2024 Guidance • Business Wire • 02/12/2024 01:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/05/2024 09:06:01 PM
- SJW Group Announces Deferral of San Jose Water Company’s Cost of Capital Filing to May 1, 2025 • Business Wire • 02/05/2024 02:02:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/30/2024 09:16:01 PM
- SJW Group Declares Dividend and Announces 2024 Dividend Increase • Business Wire • 01/25/2024 02:02:00 PM
- San Jose Water Files General Rate Case Application Focused on Infrastructure Upgrades and Water System Safety and Resiliency • Business Wire • 01/09/2024 10:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/09/2024 12:05:47 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/08/2024 09:28:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/08/2024 09:23:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/08/2024 09:17:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/08/2024 09:11:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 02:01:45 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM