Is New Jersey Resources Corp. overvalued or undervalued?

As of 4 August 2025, the valuation grade for New Jersey Resources Corp. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 1.83, and an EV to EBITDA of 10.62. In comparison to peers, New Jersey Resources Corp. has a lower P/E ratio than Southwest Gas Holdings, Inc., which stands at 28.47, and is more favorable than ONE Gas, Inc. with a P/E of 18.05.
Despite the attractive valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 0.43% compared to the index's 12.22%. This trend continues over longer periods, with a 5-year return of 72.24% versus the S&P 500's 96.61%, suggesting that while the stock may be fairly valued, it has not kept pace with broader market returns.