SJW Group (NYSE:SJW) Earnings Preview: Key Financial Insights

• SJW Group is expected to surpass Wall Street earnings estimates for the quarter ending March 2025, with projected higher revenues.
• The company's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 19.34 and a price-to-sales ratio of about 2.48.
• A positive earnings surprise could potentially lead to an increase in SJW's stock price, depending on the outcome of the earnings call.

SJW Group, listed on the NYSE under the symbol SJW, is a prominent player in the water utility industry. The company provides water services to various communities, ensuring reliable and safe water supply. As a utility company, SJW competes with other water service providers, focusing on operational efficiency and customer satisfaction.

On April 28, 2025, SJW is set to release its quarterly earnings, with Wall Street estimating earnings per share (EPS) at $0.35 and revenue at approximately $160.5 million. According to Zacks Investment Research, SJW is expected to surpass these earnings estimates, despite a projected year-over-year decline in earnings. The company is anticipated to report higher revenues for the quarter ending March 2025.

The stock's movement will largely depend on whether SJW's actual results exceed these estimates. A positive earnings surprise could lead to an increase in the stock price, while a miss might result in a decline. The sustainability of any immediate price change and future earnings expectations will be influenced by management's discussion of business conditions during the earnings call.

SJW's financial metrics provide insight into its valuation and performance. The company has a price-to-earnings (P/E) ratio of approximately 19.34, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 2.48, suggesting that investors are paying $2.48 for every dollar of sales. The enterprise value to sales ratio is roughly 2.47, reflecting the company's valuation in relation to its revenue.

The enterprise value to operating cash flow ratio is approximately 9.46, indicating how many times the operating cash flow can cover the enterprise value. SJW's earnings yield is about 5.17%, representing the return on investment for shareholders. The debt-to-equity ratio is very low at 0.0027, suggesting minimal reliance on debt financing. Lastly, the current ratio is approximately 0.73, indicating the company's ability to cover its short-term liabilities with its short-term assets.