MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
52.81 USD
-0.26 (-0.49%)
52.81 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MSEX. MSEX was compared to 15 industry peers in the Water Utilities industry. MSEX has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, MSEX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MSEX had positive earnings in the past year.
MSEX had a positive operating cash flow in the past year.
In the past 5 years MSEX has always been profitable.
In the past 5 years MSEX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.29%, MSEX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MSEX's Return On Equity of 9.43% is fine compared to the rest of the industry. MSEX outperforms 66.67% of its industry peers.
MSEX has a Return On Invested Capital of 3.38%. This is comparable to the rest of the industry: MSEX outperforms 53.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSEX is in line with the industry average of 4.86%.
The last Return On Invested Capital (3.38%) for MSEX is above the 3 year average (3.15%), which is a sign of increasing profitability.
| 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 73.33% of the companies in the same industry.
MSEX's Profit Margin has declined in the last couple of years.
MSEX has a Operating Margin of 27.32%. This is comparable to the rest of the industry: MSEX outperforms 53.33% of its industry peers.
MSEX's Operating Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSEX is destroying value.
The number of shares outstanding for MSEX has been increased compared to 1 year ago.
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 1.11. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MSEX (1.11) is comparable to the rest of the industry.
MSEX has a Debt/Equity ratio of 0.88. This is a neutral value indicating MSEX is somewhat dependend on debt financing.
MSEX's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. MSEX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.45
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.41 indicates that MSEX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.41, MSEX is doing worse than 93.33% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.35, MSEX is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.91% 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.
MSEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.40%.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)3.91%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-3.75%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%-1.83%
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 Y0.07%
EPS Next 2Y4.74%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year5.31%
Revenue Next 2Y6.97%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.10, which indicates a rather expensive current 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.
MSEX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.67.
Based on the Price/Forward Earnings ratio of 19.49, the valuation of MSEX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MSEX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, MSEX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSEX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.63 |
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)303.78
PEG (5Y)5.12
EPS Next 2Y4.74%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 2.62%.
MSEX's Dividend Yield is comparable with the industry average which is at 3.39.
MSEX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
On average, the dividend of MSEX grows each year by 6.43%, which is quite nice.
MSEX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MSEX decreased 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 2Y4.74%
EPS Next 3Y8.46%
52.81
-0.26 (-0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.4%
Inst Owner Change-0.06%
Ins Owners0.96%
Ins Owner Change-0.36%
Market Cap951.64M
Revenue(TTM)191.88M
Net Income(TTM)43.29M
Analysts82.22
Price Target65.28 (23.61%)
Short Float %2.98%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)-1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 19.49 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | 13.05 | ||
| P/B | 2.07 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)2.39
EY4.53%
EPS(NY)2.71
Fwd EY5.13%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.66%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)303.78
PEG (5Y)5.12
Graham Number37.02
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%
ROICexgc growth 3Y9.39%
ROICexgc 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 | 1.11 |
F-Score7
WACC7.5%
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)3.91%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-3.75%
EPS Next Y0.07%
EPS Next 2Y4.74%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)15.4%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%-1.83%
Revenue Next Year5.31%
Revenue Next 2Y6.97%
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%
MIDDLESEX WATER CO / MSEX FAQ
Can you provide the ChartMill fundamental rating for MIDDLESEX WATER CO?
ChartMill assigns a fundamental rating of 4 / 10 to MSEX.
What is the valuation status for MSEX stock?
ChartMill assigns a valuation rating of 2 / 10 to MIDDLESEX WATER CO (MSEX). This can be considered as Overvalued.
How profitable is MIDDLESEX WATER CO (MSEX) stock?
MIDDLESEX WATER CO (MSEX) has a profitability rating of 5 / 10.
What is the financial health of MIDDLESEX WATER CO (MSEX) stock?
The financial health rating of MIDDLESEX WATER CO (MSEX) is 1 / 10.
What is the expected EPS growth for MIDDLESEX WATER CO (MSEX) stock?
The Earnings per Share (EPS) of MIDDLESEX WATER CO (MSEX) is expected to grow by 0.07% in the next year.