MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
NASDAQ:MSEX - Nasdaq - US5966801087 - Common Stock - Currency: USD
MSEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSEX was profitable.
In the past year MSEX had a positive cash flow from operations.
In the past 5 years MSEX has always 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 3.37% is fine compared to the rest of the industry. MSEX outperforms 71.43% of its industry peers.
MSEX has a Return On Equity of 9.55%. This is in the better half of the industry: MSEX outperforms 64.29% of its industry peers.
MSEX has a Return On Invested Capital (3.58%) which is comparable to the rest of the industry.
MSEX had an Average Return On Invested Capital over the past 3 years of 3.15%. This is in line with the industry average of 5.08%.
The 3 year average ROIC (3.15%) for MSEX is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.55% | ||
| ROIC | 3.58% |
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
MSEX's Profit Margin of 22.00% is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of MSEX has declined.
MSEX's Operating Margin of 28.06% is in line compared 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 | 28.06% | ||
| PM (TTM) | 22% | ||
| 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
MSEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MSEX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MSEX has been increased compared to 5 years ago.
The debt/assets ratio for MSEX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.19, MSEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MSEX has a Debt/Equity ratio of 0.85. This is a neutral value indicating MSEX is somewhat dependend on debt financing.
The Debt to Equity ratio of MSEX (0.85) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACC0.44
WACC8.08%
2.3 Liquidity
MSEX has a Current Ratio of 0.46. 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 Current ratio value of 0.46, MSEX is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
MSEX has a Quick Ratio of 0.46. 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 0.39, MSEX is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.31% over the past year.
The Earnings Per Share has been growing slightly by 4.31% on average over the past years.
MSEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.01%.
MSEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)19.31%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-10.17%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%9.32%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
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 Y3.45%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year10.25%
Revenue Next 2Y9.03%
Revenue Next 3Y9.58%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.68, MSEX is valued on the expensive side.
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 27.30.
With a Price/Forward Earnings ratio of 19.71, MSEX is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSEX is on the same level as its industry peers.
MSEX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 19.71 |
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 | 15.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSEX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.58
PEG (5Y)5.26
EPS Next 2Y5.98%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, MSEX has a reasonable but not impressive dividend return.
MSEX's Dividend Yield is slightly below the industry average, which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.37, MSEX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
MSEX pays out 55.41% of its income as dividend. This is a bit on the high side, but may be sustainable.
MSEX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.41%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
54.67
-1.01 (-1.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner Change0%
Ins Owners0.97%
Ins Owner Change8.13%
Market Cap979.69M
Analysts82.22
Price Target67.66 (23.76%)
Short Float %2.59%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend1.32
Dividend Growth(5Y)6.43%
DP55.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.39%
Min EPS beat(2)-8.84%
Max EPS beat(2)31.61%
EPS beat(4)2
Avg EPS beat(4)7.12%
Min EPS beat(4)-9.62%
Max EPS beat(4)31.61%
EPS beat(8)3
Avg EPS beat(8)-4.23%
EPS beat(12)3
Avg EPS beat(12)-11.1%
EPS beat(16)5
Avg EPS beat(16)-8.97%
Revenue beat(2)1
Avg Revenue beat(2)3.29%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)7.4%
Revenue beat(4)2
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)7.4%
Revenue beat(8)2
Avg Revenue beat(8)-4.54%
Revenue beat(12)2
Avg Revenue beat(12)-5.02%
Revenue beat(16)2
Avg Revenue beat(16)-4.61%
PT rev (1m)0%
PT rev (3m)6.42%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-2.39%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 19.71 | ||
| P/S | 5.01 | ||
| P/FCF | N/A | ||
| P/OCF | 14.88 | ||
| P/B | 2.17 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)2.41
EY4.41%
EPS(NY)2.77
Fwd EY5.07%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)3.68
OCFY6.72%
SpS10.92
BVpS25.15
TBVpS25.15
PEG (NY)6.58
PEG (5Y)5.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.55% | ||
| ROCE | 4.66% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 3.59% | ||
| OM | 28.06% | ||
| PM (TTM) | 22% | ||
| 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 | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.54 | ||
| Cap/Depr | 264.06% | ||
| Cap/Sales | 40.45% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 77.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.19 |
F-Score7
WACC8.08%
ROIC/WACC0.44
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)19.31%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-10.17%
EPS Next Y3.45%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)16.01%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%9.32%
Revenue Next Year10.25%
Revenue Next 2Y9.03%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y31.98%
EBIT growth 3Y17.03%
EBIT growth 5Y8.43%
EBIT Next Year65.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y62.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.96%
OCF growth 3Y21.15%
OCF growth 5Y10.25%