MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
52.56 USD
-0.09 (-0.17%)
52.56 USD
0 (0%)
Taking everything into account, MSEX scores 4 out of 10 in our fundamental rating. MSEX was compared to 15 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 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.
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.
Looking at the Return On Equity, with a value of 9.43%, MSEX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
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 4.87%.
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
Looking at the Profit Margin, with a value of 22.10%, MSEX is in the better half of 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 (27.32%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
MSEX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.10, MSEX is in line with its industry, outperforming 60.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.88, MSEX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.46
WACC7.33%
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.
MSEX has a worse Current ratio (0.41) than 93.33% 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.
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.
Looking at the last year, MSEX shows a quite strong growth in Revenue. The Revenue has grown by 15.40% in the last year.
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
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
MSEX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.58% yearly.
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
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
A Price/Earnings ratio of 21.99 indicates a rather expensive valuation of MSEX.
MSEX's Price/Earnings ratio is in line with the industry average.
MSEX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.40, the valuation of MSEX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSEX indicates a somewhat cheap valuation: MSEX is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. MSEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.4 |
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 | 15.54 |
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)302.35
PEG (5Y)5.1
EPS Next 2Y4.74%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, MSEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.38, MSEX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, MSEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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
MSEX pays out 55.79% of its income as dividend. 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%
52.56
-0.09 (-0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.4%
Inst Owner Change-0.08%
Ins Owners0.96%
Ins Owner Change-0.36%
Market Cap947.13M
Revenue(TTM)191.88M
Net Income(TTM)43.29M
Analysts82.22
Price Target65.28 (24.2%)
Short Float %2.98%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.4 | ||
| P/S | 4.84 | ||
| P/FCF | N/A | ||
| P/OCF | 12.99 | ||
| P/B | 2.06 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)2.39
EY4.55%
EPS(NY)2.71
Fwd EY5.16%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.7%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)302.35
PEG (5Y)5.1
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 | 1.1 |
F-Score7
WACC7.33%
ROIC/WACC0.46
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.