Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Gas Utilities industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Gas Utilities Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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3 Undervalued Gas Utilities Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Gas Utilities industry for Friday, November 21, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Gas Utilities industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Brookfield Infrastructure Corporation | BIPC | 1.59 | na | 7.3 | 20.7% | na | na | A |
| New Jersey Resources Corporation | NJR | 2.28 | 11.7 | 9.9 | 2.6% | 1.99 | na | B |
| Suburban Propane Partners, L.P. | SPH | 0.85 | 12.6 | 10.4 | 5.5% | 1.89 | 58.4 | B |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Brookfield Infrastructure Corporation’s Value Grade
Value Grade:
| Metric | Score | BIPC | Industry Median |
| Price/Sales | 45 | 1.59 |
2.01 |
| Price/Earnings | na | na |
19.2 |
| EV/EBITDA | 20 | 7.3 | 9.9 |
| Shareholder Yield | 1 | 20.7% |
2.5% |
| Price/Book Value | na | na |
1.60 |
| Price/Free Cash Flow | na | na |
58.4 |
Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates utility investments in Brazil, the United Kingdom, and internationally. It also engages in the regulated gas and electricity business; and operation of regulated natural gas transmission systems. The company operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais, Brazil; 4.7 million gas and electricity connections in the United Kingdom; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation is a subsidiary of Brookfield Infrastructure Partners L.P.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Brookfield Infrastructure Corporation has a Value Score of 93, which is considered to be undervalued.
When you look at Brookfield Infrastructure Corporation’s price-to-sales ratio at 1.59 compared to the industry median at 2.01, this company has a lower price relative to revenue compared to its peers. This could make Brookfield Infrastructure Corporation’s stock more attractive for value investors.
Now, let’s assess Brookfield Infrastructure Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 7.3, when compared to the industry median of 9.9, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Brookfield Infrastructure Corporation’s shareholder yield is higher than its industry median ratio of 2.50%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
New Jersey Resources Corporation’s Value Grade
Value Grade:
| Metric | Score | NJR | Industry Median |
| Price/Sales | 55 | 2.28 |
2.01 |
| Price/Earnings | 26 | 11.7 |
19.2 |
| EV/EBITDA | 34 | 9.9 | 9.9 |
| Shareholder Yield | 29 | 2.6% | 2.5% |
| Price/Book Value | 53 | 1.99 | 1.60 |
| Price/Free Cash Flow | na | na | 58.4 |
New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to residential and commercial customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates clean energy projects, including commercial and residential solar installation situated in New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. The Energy Services segment maintains and operates natural gas transportation and storage capacity contracts, as well as provides physical wholesale energy, retail energy and energy management services. The Storage and Transportation segment invests in energy-related ventures. It provides heating, ventilation, and cooling services; sales and installation of appliances; solar equipment installation, and plumbing repair and installation services, as well as holds commercial real estate properties. The company was founded in 1922 and is headquartered in Wall, New Jersey.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
New Jersey Resources Corporation has a Value Score of 65, which is considered to be undervalued.
New Jersey Resources Corporation’s price-earnings ratio is 11.7 compared to the industry median at 19.2. This means that it has a lower price relative to its earnings compared to its peers. This makes New Jersey Resources Corporation more attractive for value investors.
New Jersey Resources Corporation’s price-to-book ratio is lower than its peers. This could make New Jersey Resources Corporation more attractive for value investors when compared to the industry median at 1.60.
You can read more about New Jersey Resources Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Suburban Propane Partners, L.P.’s Value Grade
Value Grade:
| Metric | Score | SPH | Industry Median |
| Price/Sales | 30 | 0.85 |
2.01 |
| Price/Earnings | 31 | 12.6 |
19.2 |
| EV/EBITDA | 38 | 10.4 | 9.9 |
| Shareholder Yield | 15 | 5.5% | 2.5% |
| Price/Book Value | 52 | 1.89 | 1.60 |
| Price/Free Cash Flow | 86 | 58.4 | 58.4 |
Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, renewable propane, fuel oil, and refined fuels in the United States. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment is involved in the retail distribution of propane for space heating, water heating, cooking, and clothes drying for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces as a cutting gas to the industrial customers; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. It also engages in the wholesale distribution of propane to industrial end users. Its Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers for use in primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment markets natural gas and electricity to residential and commercial customers in the deregulated energy markets in New York and Pennsylvania. The All Other segment sells, installs, and services a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, and space heaters. The company serves residential, commercial, industrial, and agricultural customers primarily in the east and west coast regions of the United States, as well as portions of the midwest region of the United States and Alaska. Suburban Propane Partners, L.P. was founded in 1945 and is based in Whippany, New Jersey.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Suburban Propane Partners, L.P. has a Value Score of 61, which is considered to be undervalued.
Suburban Propane Partners, L.P.’s price-earnings ratio is 12.6 compared to the industry median at 19.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Suburban Propane Partners, L.P. more attractive for value investors.
Suburban Propane Partners, L.P.’s price-to-book ratio is lower than its peers. This could make Suburban Propane Partners, L.P. more attractive for value investors when compared to the industry median at 1.60.
You can read more about Suburban Propane Partners, L.P.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Gas Utilities Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Gas Utilities stocks as well as other industrys.
Choosing Which of the 3 Best Gas Utilities Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Brookfield Infrastructure Corporation stock has a Value Grade of A.
- New Jersey Resources Corporation stock has a Value Grade of B.
- Suburban Propane Partners, L.P. stock has a Value Grade of B.
Now that you have a bit more background about each of the 3 undervalued stocks in the Gas Utilities industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Gas Utilities Stocks
Want to learn more about Gas Utilities stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
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