ARTESIAN RESOURCES CORP-CL A (ARTNA) Stock Fundamental Analysis
USA - NASDAQ:ARTNA - US0431132085 - Common Stock
33.9 USD
+0.34 (+1.01%)
33.9 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ARTNA. ARTNA was compared to 15 industry peers in the Water Utilities industry. While ARTNA is still in line with the averages on profitability rating, there are concerns on its financial health. ARTNA has a decent growth rate and is not valued too expensively. Finally ARTNA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARTNA was profitable.
ARTNA had a positive operating cash flow in the past year.
ARTNA had positive earnings in each of the past 5 years.
ARTNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.73%, ARTNA is in line with its industry, outperforming 46.67% of the companies in the same industry.
With a Return On Equity value of 9.14%, ARTNA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Return On Invested Capital of ARTNA (3.24%) is worse than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARTNA is in line with the industry average of 4.85%.
The last Return On Invested Capital (3.24%) for ARTNA is above the 3 year average (3.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 9.14% | ||
| ROIC | 3.24% |
ROA(3y)2.41%
ROA(5y)2.55%
ROE(3y)8.45%
ROE(5y)8.95%
ROIC(3y)3.04%
ROIC(5y)3.21%
1.3 Margins
The Profit Margin of ARTNA (20.27%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ARTNA has remained more or less at the same level.
ARTNA's Operating Margin of 32.00% is fine compared to the rest of the industry. ARTNA outperforms 66.67% of its industry peers.
ARTNA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32% | ||
| PM (TTM) | 20.27% | ||
| GM | N/A |
OM growth 3Y0.16%
OM growth 5Y0.63%
PM growth 3Y0.66%
PM growth 5Y1.13%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ARTNA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARTNA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ARTNA has been increased compared to 5 years ago.
Compared to 1 year ago, ARTNA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that ARTNA is in the distress zone and has some risk of bankruptcy.
ARTNA has a worse Altman-Z score (0.79) than 66.67% of its industry peers.
ARTNA has a Debt/Equity ratio of 0.72. This is a neutral value indicating ARTNA is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.72, ARTNA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.38
WACC8.45%
2.3 Liquidity
ARTNA has a Current Ratio of 0.87. This is a bad value and indicates that ARTNA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ARTNA (0.87) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.69 indicates that ARTNA may have some problems paying its short term obligations.
ARTNA has a Quick ratio of 0.69. This is in the lower half of the industry: ARTNA underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.91% over the past year.
ARTNA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
Looking at the last year, ARTNA shows a small growth in Revenue. The Revenue has grown by 7.13% in the last year.
Measured over the past years, ARTNA shows a small growth in Revenue. The Revenue has been growing by 5.25% on average per year.
EPS 1Y (TTM)21.91%
EPS 3Y3.42%
EPS 5Y4.36%
EPS Q2Q%17.31%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y5.91%
Revenue growth 5Y5.25%
Sales Q2Q%4.13%
3.2 Future
The Earnings Per Share is expected to grow by 7.22% on average over the next years.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y12.36%
EPS Next 2Y7.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y5.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.62, the valuation of ARTNA can be described as correct.
Based on the Price/Earnings ratio, ARTNA is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARTNA to the average of the S&P500 Index (27.69), we can say ARTNA is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.89, which indicates a correct valuation of ARTNA.
93.33% of the companies in the same industry are more expensive than ARTNA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARTNA to the average of the S&P500 Index (23.18), we can say ARTNA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than ARTNA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)3.58
EPS Next 2Y7.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, ARTNA has a reasonable but not impressive dividend return.
ARTNA's Dividend Yield is rather good when compared to the industry average which is at 3.17. ARTNA pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ARTNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of ARTNA has a limited annual growth rate of 3.81%.
ARTNA has been paying a dividend for at least 10 years, so it has a reliable track record.
ARTNA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.81%
Div Incr Years30
Div Non Decr Years30
5.3 Sustainability
ARTNA pays out 55.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
ARTNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.48%
EPS Next 2Y7.22%
EPS Next 3YN/A
33.9
+0.34 (+1.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.11%
Inst Owner Change0.15%
Ins Owners2.46%
Ins Owner Change0.65%
Market Cap349.51M
Analysts86.67
Price Target46.92 (38.41%)
Short Float %0.57%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend1.18
Dividend Growth(5Y)3.81%
DP55.48%
Div Incr Years30
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.39%
Min EPS beat(2)5.76%
Max EPS beat(2)47.02%
EPS beat(4)4
Avg EPS beat(4)17.52%
Min EPS beat(4)5.05%
Max EPS beat(4)47.02%
EPS beat(8)5
Avg EPS beat(8)8.57%
EPS beat(12)7
Avg EPS beat(12)4.57%
EPS beat(16)9
Avg EPS beat(16)2.78%
Revenue beat(2)1
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)4.27%
Revenue beat(8)2
Avg Revenue beat(8)-1.66%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)6
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 14.89 | ||
| P/S | 3.17 | ||
| P/FCF | N/A | ||
| P/OCF | 9.64 | ||
| P/B | 1.43 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)2.17
EY6.4%
EPS(NY)2.28
Fwd EY6.71%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)3.52
OCFY10.37%
SpS10.71
BVpS23.75
TBVpS23.54
PEG (NY)1.26
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 9.14% | ||
| ROCE | 4.45% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.25% | ||
| OM | 32% | ||
| PM (TTM) | 20.27% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.41%
ROA(5y)2.55%
ROE(3y)8.45%
ROE(5y)8.95%
ROIC(3y)3.04%
ROIC(5y)3.21%
ROICexc(3y)3.04%
ROICexc(5y)3.21%
ROICexgc(3y)3.05%
ROICexgc(5y)3.22%
ROCE(3y)4.2%
ROCE(5y)4.51%
ROICexcg growth 3Y-2.16%
ROICexcg growth 5Y-1.28%
ROICexc growth 3Y-2.24%
ROICexc growth 5Y-1.33%
OM growth 3Y0.16%
OM growth 5Y0.63%
PM growth 3Y0.66%
PM growth 5Y1.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 398.41% | ||
| Cap/Sales | 48.75% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 74.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.79 |
F-Score7
WACC8.45%
ROIC/WACC0.38
Cap/Depr(3y)395.84%
Cap/Depr(5y)367.69%
Cap/Sales(3y)51.49%
Cap/Sales(5y)47.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.91%
EPS 3Y3.42%
EPS 5Y4.36%
EPS Q2Q%17.31%
EPS Next Y12.36%
EPS Next 2Y7.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.13%
Revenue growth 3Y5.91%
Revenue growth 5Y5.25%
Sales Q2Q%4.13%
Revenue Next Year5.66%
Revenue Next 2Y5.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.41%
EBIT growth 3Y6.09%
EBIT growth 5Y5.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40%
OCF growth 3Y5.55%
OCF growth 5Y14.31%