MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
51.89 USD
-0.91 (-1.71%)
51.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MSEX. MSEX was compared to 14 industry peers in the Water Utilities industry. MSEX has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSEX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSEX was profitable.
MSEX had a positive operating cash flow in the past year.
Each year in the past 5 years MSEX has been profitable.
Each year in the past 5 years MSEX had a positive operating cash flow.
1.2 Ratios
MSEX's Return On Assets of 3.29% is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
The Return On Equity of MSEX (9.43%) is better than 64.29% of its industry peers.
MSEX has a Return On Invested Capital (3.38%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSEX is in line with the industry average of 4.98%.
The 3 year average ROIC (3.15%) for MSEX is below the current ROIC(3.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 9.43% | ||
| ROIC | 3.38% |
ROA(3y)3.33%
ROA(5y)3.5%
ROE(3y)9.27%
ROE(5y)9.73%
ROIC(3y)3.15%
ROIC(5y)3.07%
1.3 Margins
With a decent Profit Margin value of 22.10%, MSEX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MSEX has declined.
MSEX has a Operating Margin of 27.32%. This is comparable to the rest of the industry: MSEX outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of MSEX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.32% | ||
| PM (TTM) | 22.1% | ||
| GM | N/A |
OM growth 3Y6.13%
OM growth 5Y1.01%
PM growth 3Y-3.22%
PM growth 5Y-1.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MSEX is destroying value.
Compared to 1 year ago, MSEX has more shares outstanding
MSEX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MSEX has been reduced compared to a year ago.
2.2 Solvency
MSEX has an Altman-Z score of 1.09. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, MSEX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
MSEX has a Debt/Equity ratio of 0.88. This is a neutral value indicating MSEX is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.88, MSEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.45
WACC7.49%
2.3 Liquidity
MSEX has a Current Ratio of 0.41. This is a bad value and indicates that MSEX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MSEX (0.41) is worse than 85.71% of its industry peers.
MSEX has a Quick Ratio of 0.41. This is a bad value and indicates that MSEX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.35, MSEX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.48% over the past year.
Measured over the past 5 years, MSEX shows a small growth in Earnings Per Share. The EPS has been growing by 4.31% on average per year.
Looking at the last year, MSEX shows a quite strong growth in Revenue. The Revenue has grown by 11.91% in the last year.
Measured over the past years, MSEX shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)17.48%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%1.69%
Revenue 1Y (TTM)11.91%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%0.36%
3.2 Future
MSEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
Based on estimates for the next years, MSEX will show a quite strong growth in Revenue. The Revenue will grow by 9.58% on average per year.
EPS Next Y1.04%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y7.62%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.44 indicates a rather expensive valuation of MSEX.
Compared to the rest of the industry, the Price/Earnings ratio of MSEX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MSEX to the average of the S&P500 Index (27.20), we can say MSEX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.73, the valuation of MSEX can be described as rather expensive.
MSEX's Price/Forward Earnings is on the same level as the industry average.
MSEX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSEX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)20.69
PEG (5Y)4.97
EPS Next 2Y5.92%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 3.37, MSEX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MSEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of MSEX grows each year by 6.43%, which is quite nice.
MSEX has been paying a dividend for at least 10 years, so it has a reliable track record.
MSEX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.79% of the earnings are spent on dividend by MSEX. This is a bit on the high side, but may be sustainable.
The dividend of MSEX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.79%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
51.89
-0.91 (-1.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.22%
Inst Owner Change-2.52%
Ins Owners0.96%
Ins Owner Change7.8%
Market Cap935.06M
Analysts82.22
Price Target65.28 (25.8%)
Short Float %2.98%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend1.32
Dividend Growth(5Y)6.43%
DP55.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.52%
Min EPS beat(2)-12.2%
Max EPS beat(2)-8.84%
EPS beat(4)2
Avg EPS beat(4)6.48%
Min EPS beat(4)-12.2%
Max EPS beat(4)31.61%
EPS beat(8)3
Avg EPS beat(8)-4.48%
EPS beat(12)3
Avg EPS beat(12)-9.56%
EPS beat(16)4
Avg EPS beat(16)-9.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-5.82%
Max Revenue beat(2)-0.82%
Revenue beat(4)2
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-5.82%
Max Revenue beat(4)7.4%
Revenue beat(8)2
Avg Revenue beat(8)-4.43%
Revenue beat(12)2
Avg Revenue beat(12)-5.08%
Revenue beat(16)2
Avg Revenue beat(16)-4.97%
PT rev (1m)0%
PT rev (3m)-3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.5%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 18.73 | ||
| P/S | 4.77 | ||
| P/FCF | N/A | ||
| P/OCF | 12.82 | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 15.37 |
EPS(TTM)2.42
EY4.66%
EPS(NY)2.77
Fwd EY5.34%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.8%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)20.69
PEG (5Y)4.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 9.43% | ||
| ROCE | 4.48% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.39% | ||
| OM | 27.32% | ||
| PM (TTM) | 22.1% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.33%
ROA(5y)3.5%
ROE(3y)9.27%
ROE(5y)9.73%
ROIC(3y)3.15%
ROIC(5y)3.07%
ROICexc(3y)3.16%
ROICexc(5y)3.08%
ROICexgc(3y)3.16%
ROICexgc(5y)3.08%
ROCE(3y)4.13%
ROCE(5y)3.98%
ROICexcg growth 3Y9.39%
ROICexcg growth 5Y1.66%
ROICexc growth 3Y9.39%
ROICexc growth 5Y1.66%
OM growth 3Y6.13%
OM growth 5Y1.01%
PM growth 3Y-3.22%
PM growth 5Y-1.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.84 | ||
| Cap/Depr | 331.71% | ||
| Cap/Sales | 51.64% | ||
| Interest Coverage | 3.98 | ||
| Cash Conversion | 86.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.09 |
F-Score7
WACC7.49%
ROIC/WACC0.45
Cap/Depr(3y)301.61%
Cap/Depr(5y)341.57%
Cap/Sales(3y)49.79%
Cap/Sales(5y)55.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.48%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%1.69%
EPS Next Y1.04%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)11.91%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%0.36%
Revenue Next Year6.51%
Revenue Next 2Y7.62%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y15.69%
EBIT growth 3Y17.03%
EBIT growth 5Y8.43%
EBIT Next Year51.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y27.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.34%
OCF growth 3Y21.15%
OCF growth 5Y10.25%