MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
NASDAQ:MSEX - Nasdaq - US5966801087 - Common Stock - Currency: USD
Overall MSEX gets a fundamental rating of 4 out of 10. We evaluated MSEX 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.
MSEX had a positive operating cash flow in the past year.
MSEX had positive earnings in each of the past 5 years.
Each year in the past 5 years MSEX had a positive operating cash flow.
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 in line with its industry peers.
MSEX has a Return On Invested Capital (3.45%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSEX is below the industry average of 5.70%.
The 3 year average ROIC (2.87%) for MSEX is below the current ROIC(3.45%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
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.
MSEX has a Operating Margin (27.77%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MSEX has declined.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSEX 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 1.18, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.18, MSEX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that MSEX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, MSEX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.47
WACC7.32%
2.3 Liquidity
MSEX has a Current Ratio of 0.65. 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 0.65, MSEX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that MSEX may have some problems paying its short term obligations.
The Quick ratio of MSEX (0.57) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.00% over the past year.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
MSEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)25%
EPS 3Y-6.89%
EPS 5Y-2.13%
EPS Q2Q%42.86%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y5.5%
Revenue growth 5Y3.78%
Sales Q2Q%17.95%
3.2 Future
Based on estimates for the next years, MSEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.76% on average per year.
The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y35.81%
EPS Next 2Y18.02%
EPS Next 3Y13.76%
EPS Next 5YN/A
Revenue Next Year7.81%
Revenue Next 2Y6.91%
Revenue Next 3Y7.11%
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
Based on the Price/Earnings ratio of 22.17, the valuation of MSEX can be described as rather expensive.
MSEX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.28. MSEX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 20.80, which indicates a rather expensive current valuation of MSEX.
MSEX's Price/Forward Earnings ratio is in line with the industry average.
MSEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than MSEX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.11 |
4.3 Compensation for Growth
MSEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MSEX's earnings are expected to grow with 13.76% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y18.02%
EPS Next 3Y13.76%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MSEX has falen by -21.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MSEX's Dividend Yield is a higher than the industry average which is at 3.57.
MSEX's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of MSEX is nicely growing with an annual growth rate of 6.75%!
MSEX has been paying a dividend for at least 10 years, so it has 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
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.
The dividend of MSEX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.53%
EPS Next 2Y18.02%
EPS Next 3Y13.76%
MIDDLESEX WATER CO
NASDAQ:MSEX (1/29/2025, 8:00:02 PM)
After market: 51 0 (0%)51
-0.79 (-1.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners75.01%
Inst Owner Change-2.44%
Ins Owners1.21%
Ins Owner Change-0.29%
Market Cap910.86M
Analysts50
Price Target63.92 (25.33%)
Short Float %3.3%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.27
Dividend Growth(5Y)6.75%
DP56.53%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-5.05%
PT rev (3m)-2.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.78%
EPS NY rev (1m)0%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 20.8 | ||
| P/S | 4.97 | ||
| P/FCF | N/A | ||
| P/OCF | 18.17 | ||
| P/B | 2.05 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 16.11 |
EPS(TTM)2.3
EY4.51%
EPS(NY)2.45
Fwd EY4.81%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)2.81
OCFY5.5%
SpS10.27
BVpS24.85
TBVpS24.85
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.18 |
F-Score6
WACC7.32%
ROIC/WACC0.47
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)25%
EPS 3Y-6.89%
EPS 5Y-2.13%
EPS Q2Q%42.86%
EPS Next Y35.81%
EPS Next 2Y18.02%
EPS Next 3Y13.76%
EPS Next 5YN/A
Revenue 1Y (TTM)10.13%
Revenue growth 3Y5.5%
Revenue growth 5Y3.78%
Sales Q2Q%17.95%
Revenue Next Year7.81%
Revenue Next 2Y6.91%
Revenue Next 3Y7.11%
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%