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MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis

NASDAQ:MSEX - Nasdaq - US5966801087 - Common Stock - Currency: USD

58.03  +7.9 (+15.76%)

After market: 58.03 0 (0%)

Fundamental Rating

3

Overall MSEX gets a fundamental rating of 3 out of 10. We evaluated MSEX against 14 industry peers in the Water Utilities industry. There are concerns on the financial health of MSEX while its profitability can be described as average. MSEX is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

MSEX had positive earnings in the past year.
In the past year MSEX had a positive cash flow from operations.
Of the past 5 years MSEX 4 years were profitable.
MSEX had a positive operating cash flow in 4 of the past 5 years.
MSEX Yearly Net Income VS EBIT VS OCF VS FCFMSEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M -40M 60M

1.2 Ratios

The Return On Assets of MSEX (3.35%) is comparable to the rest of the industry.
MSEX has a Return On Equity (9.28%) which is comparable to the rest of the industry.
MSEX has a Return On Invested Capital (3.45%) which is comparable to the rest of the industry.
MSEX had an Average Return On Invested Capital over the past 3 years of 2.87%. This is below the industry average of 5.69%.
The 3 year average ROIC (2.87%) for MSEX is below the current ROIC(3.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.35%
ROE 9.28%
ROIC 3.45%
ROA(3y)3.35%
ROA(5y)3.54%
ROE(3y)9.25%
ROE(5y)9.82%
ROIC(3y)2.87%
ROIC(5y)3.01%
MSEX Yearly ROA, ROE, ROICMSEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

With a decent Profit Margin value of 22.46%, MSEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of MSEX has declined.
The Operating Margin of MSEX (27.77%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MSEX has declined.
Industry RankSector Rank
OM 27.77%
PM (TTM) 22.46%
GM N/A
OM growth 3Y-3.7%
OM growth 5Y-2.57%
PM growth 3Y-11.28%
PM growth 5Y-4.19%
GM growth 3YN/A
GM growth 5YN/A
MSEX Yearly Profit, Operating, Gross MarginsMSEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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2

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MSEX Yearly Shares OutstandingMSEX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
MSEX Yearly Total Debt VS Total AssetsMSEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

MSEX has an Altman-Z score of 1.16. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
MSEX's Altman-Z score of 1.16 is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
MSEX has a Debt/Equity ratio of 0.83. This is a neutral value indicating MSEX is somewhat dependend on debt financing.
MSEX's Debt to Equity ratio of 0.83 is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF N/A
Altman-Z 1.16
ROIC/WACC0.46
WACC7.53%
MSEX Yearly LT Debt VS Equity VS FCFMSEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 0.65 indicates that MSEX may have some problems paying its short term obligations.
MSEX's Current ratio of 0.65 is on the low side compared to the rest of the industry. MSEX is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.57 indicates that MSEX may have some problems paying its short term obligations.
MSEX has a worse Quick ratio (0.57) than 78.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.57
MSEX Yearly Current Assets VS Current LiabilitesMSEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 40.34% over the past year.
The Earnings Per Share has been growing slightly by 4.31% on average over the past years.
EPS 1Y (TTM)40.34%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%53.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%22.04%

3.2 Future

Based on estimates for the next years, MSEX will show a small growth in Earnings Per Share. The EPS will grow by 2.42% on average per year.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y-0.75%
EPS Next 2Y2.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.01%
Revenue Next 2Y6.76%
Revenue Next 3YN/A
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 decreasing.
MSEX Yearly Revenue VS EstimatesMSEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
MSEX Yearly EPS VS EstimatesMSEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.49, 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 valuation a bit cheaper than the S&P500 average which is at 29.75.
Based on the Price/Forward Earnings ratio of 23.67, 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.49
Fwd PE 23.67
MSEX Price Earnings VS Forward Price EarningsMSEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 15.91
MSEX Per share dataMSEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)5.45
EPS Next 2Y2.42%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

MSEX has a Yearly Dividend Yield of 2.71%.
MSEX's Dividend Yield is a higher than the industry average which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.30, MSEX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.71%

5.2 History

On average, the dividend of MSEX grows each year by 6.75%, 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)6.75%
Div Incr Years2
Div Non Decr Years2
MSEX Yearly Dividends per shareMSEX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

56.53% of the earnings are spent on dividend by MSEX. This is a bit on the high side, but may be sustainable.
MSEX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.53%
EPS Next 2Y2.42%
EPS Next 3YN/A
MSEX Yearly Income VS Free CF VS DividendMSEX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M -40M
MSEX Dividend Payout.MSEX Dividend Payout, showing the Payout Ratio.MSEX Dividend Payout.PayoutRetained Earnings

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MIDDLESEX WATER CO

NASDAQ:MSEX (3/3/2025, 6:32:46 PM)

After market: 58.03 0 (0%)

58.03

+7.9 (+15.76%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-28 2025-02-28/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners78.75%
Inst Owner Change-2.14%
Ins Owners1.18%
Ins Owner Change-0.81%
Market Cap1.04B
Analysts50
Price Target62.22 (7.22%)
Short Float %2.72%
Short Ratio3.53
Dividend
Industry RankSector Rank
Dividend Yield 2.71%
Yearly Dividend1.27
Dividend Growth(5Y)6.75%
DP56.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-18 2025-02-18 (0.34)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.86%
Min EPS beat(2)-9.62%
Max EPS beat(2)15.34%
EPS beat(4)2
Avg EPS beat(4)-2.39%
Min EPS beat(4)-39.67%
Max EPS beat(4)24.39%
EPS beat(8)2
Avg EPS beat(8)-14.31%
EPS beat(12)3
Avg EPS beat(12)-12.53%
EPS beat(16)5
Avg EPS beat(16)-10.93%
Revenue beat(2)1
Avg Revenue beat(2)0.31%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)3.09%
Revenue beat(4)1
Avg Revenue beat(4)-6.48%
Min Revenue beat(4)-15.71%
Max Revenue beat(4)3.09%
Revenue beat(8)1
Avg Revenue beat(8)-7.66%
Revenue beat(12)1
Avg Revenue beat(12)-6.3%
Revenue beat(16)1
Avg Revenue beat(16)-5.24%
PT rev (1m)0%
PT rev (3m)-7.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
Industry RankSector Rank
PE 23.49
Fwd PE 23.67
P/S 5.65
P/FCF N/A
P/OCF 20.68
P/B 2.34
P/tB 2.34
EV/EBITDA 15.91
EPS(TTM)2.47
EY4.26%
EPS(NY)2.45
Fwd EY4.22%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)2.81
OCFY4.84%
SpS10.27
BVpS24.85
TBVpS24.85
PEG (NY)N/A
PEG (5Y)5.45
Profitability
Industry RankSector Rank
ROA 3.35%
ROE 9.28%
ROCE 4.43%
ROIC 3.45%
ROICexc 3.47%
ROICexgc 3.47%
OM 27.77%
PM (TTM) 22.46%
GM N/A
FCFM N/A
ROA(3y)3.35%
ROA(5y)3.54%
ROE(3y)9.25%
ROE(5y)9.82%
ROIC(3y)2.87%
ROIC(5y)3.01%
ROICexc(3y)2.88%
ROICexc(5y)3.02%
ROICexgc(3y)2.88%
ROICexgc(5y)3.02%
ROCE(3y)3.77%
ROCE(5y)3.92%
ROICexcg growth 3Y-6.39%
ROICexcg growth 5Y-8.32%
ROICexc growth 3Y-6.39%
ROICexc growth 5Y-8.32%
OM growth 3Y-3.7%
OM growth 5Y-2.57%
PM growth 3Y-11.28%
PM growth 5Y-4.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF N/A
Debt/EBITDA 4.71
Cap/Depr 241.59%
Cap/Sales 36.31%
Interest Coverage 3.43
Cash Conversion 63.87%
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.57
Altman-Z 1.16
F-Score6
WACC7.53%
ROIC/WACC0.46
Cap/Depr(3y)311.63%
Cap/Depr(5y)391.8%
Cap/Sales(3y)55.32%
Cap/Sales(5y)61.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.34%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%53.12%
EPS Next Y-0.75%
EPS Next 2Y2.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%22.04%
Revenue Next Year6.01%
Revenue Next 2Y6.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y30.14%
EBIT growth 3Y1.6%
EBIT growth 5Y1.12%
EBIT Next Year104.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.5%
OCF growth 3Y-0.36%
OCF growth 5Y2.85%