SJW Corp Stock Analysis, Valuation (NYSE:SJW)

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$65.86 $0.89 (1.33%) SJW stock closing price Aug 15, 2018 (Closing)

Watch the robo advisor video of SJW Corp stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SJW stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

SJW Corp. Stock Rating 3/5

Amigobulls SJW stock analysis takes into account various financial ratios like relative valuation, SJW Corp revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check SJW Corp dividend performance. SJW Corp valuation forms a crucial part of our stock analysis. Our SJW Corp stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SJW stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 7.8.
  • SJW Corp's average operating margin of 22.07 was exceptional.
  • LTM Net margins were good at 13% for SJW Corp.
  • SJW Corp generates a high return on invested capital of 4.5.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for SJW Corp at 11.2.

Should you sell SJW stock?

  • Trading at a PE ratio of 28.9, SJW stock is overvalued in comparison to sector average multiple of 19.6.
  • The company is trading at a price to sales multiple of 3.5, which is overvalued in comparison to the Utilities sector average multiple of 2.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -12.

Comments on this video and SJW Corp stock

Amigobulls SJW Corp stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SJW stock. Company's fundamentals remain one of the key driver of SJW stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, SJW Corp revenue growth and profit or net income are two main metrics which help in identifying whether SJW stock is overvalued or undervalued. Investors could make use of SJW technical analysis to check whether the fundamental story is reflected in the market sentiment.