New Jersey Resources Q1 2026 Earnings Snapshot

New Jersey Resources (NJR) opened fiscal 2026 with Q1 revenue of US$604.9 million and basic EPS of US$1.22, setting a clear benchmark against its recent trading price of US$51.81. The company has seen quarterly revenue move from US$488.4 million in Q1 2025 to US$604.9 million in Q1 2026, while basic EPS shifted from US$1.32 to US$1.22 over the same periods. This gives investors a straightforward read on how the top and bottom lines compare with last year’s winter quarter. With trailing 12 month EPS at US$3.25 and net profit margin lower than the prior year on the provided figures, the focus turns to how investors judge the balance between growth, cash coverage and margin pressure.

See our full analysis for New Jersey Resources.

With the headline numbers on the table, the next step is to see how this set of results lines up against the widely followed narratives on New Jersey Resources and where the data may start to challenge those views.

15.2% margin trails last year’s 18.2%

• Over the last 12 months, net profit margin sits at 15.2% versus 18.2% a year earlier, while trailing revenue is US$2.2b and net income is US$326.8 million on the same basis.
• What stands out for a more cautious, bearish read is that this softer margin arrives alongside forecast annual earnings growth of about 7.4% and revenue growth of about 3.2%, creating a gap between growth expectations and recent profitability trends.
  • Critics highlight that the margin shift from 18.2% to 15.2% sits next to weak coverage of debt by operating cash flow and a dividend that is not well covered by free cash flow, so more growth may be passing through the income statement than through cash generation.
  • At the same time, trailing 12 month EPS of US$3.25 anchors those growth forecasts, so anyone leaning bearish has to weigh margin pressure and cash flow risks against earnings that are still positive on a trailing basis.

On a set of numbers like this, skeptics often ask whether earnings quality and cash coverage match the headline EPS story, and that is where deeper bear-case work on New Jersey Resources can be useful. 🐻 New Jersey Resources Bear Case

P/E of 16x sits between market and peers

• The shares trade at a P/E of 16x against the recent price of US$51.81 and trailing EPS of US$3.25, which is below the US market average of about 19x but above the Global Gas Utilities industry average of about 14.3x.
• Supporters with a more bullish tilt often point to that P/E being lower than the broader market and to the forecast 7.4% annual earnings growth. Yet these same numbers share space with a trailing margin that moved from 18.2% to 15.2%, so the stock looks neither especially cheap nor especially expensive on this simple multiple alone.
  • Consensus style arguments that a sub market P/E offers some cushion are tested by the fact that the company also carries weaker free cash flow coverage of its roughly 3.67% dividend yield and limited operating cash flow coverage of debt, which can make a modest-looking multiple feel less comfortable.
  • On the other hand, forecast revenue growth of about 3.2% per year alongside that earnings growth rate shows why bulls see room for the market to pay a mid-teens multiple, as long as those growth figures and margins hold together.

With valuation signals mixed like this, many investors turn to a fuller narrative to see how growth, income, and balance sheet strength all fit together for New Jersey Resources. 📊 Read the full New Jersey Resources Consensus Narrative.

DCF fair value far below market price

• A DCF fair value of US$14.90 in the dataset sits well under the recent share price of US$51.81, while the trailing P/E of 16x and net profit margin of 15.2% round out a set of signals that do not all point in the same direction.
• What is most challenging for a bullish angle here is that a model based on discounted cash flows points to a value significantly below the market price, at the same time as free cash flow does not fully cover the dividend and operating cash flow does not fully cover debt, so optimistic views have to lean more on earnings growth forecasts than on cash based valuation.
  • Supporters who focus on the 7.4% expected earnings growth and US$326.8 million of trailing net income may argue that cash flow based models could shift if future earnings translate into stronger cash generation, but the current DCF fair value of US$14.90 signals a much more conservative stance.
  • Because revenue is forecast to grow at about 3.2% per year and the business currently carries a margin of 15.2%, any bullish thesis needs to be clear on how those figures can improve cash flow coverage enough to narrow the wide gap between market price and DCF fair value.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on New Jersey Resources's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

New Jersey Resources is working with softer margins, limited free cash flow coverage of its dividend, and operating cash flow that does not fully cover debt.

If that mix makes you uneasy, shift your focus toward companies with stronger cushions by checking out solid balance sheet and fundamentals stocks screener (388 results) today and compare businesses built on sturdier financial footing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.