MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
58.515 USD
-1.52 (-2.52%)
We assign a fundamental rating of 4 out of 10 to MSEX. MSEX was compared to 15 industry peers in the Water Utilities industry. While MSEX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, MSEX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSEX was profitable.
MSEX had a positive operating cash flow in the past year.
In the past 5 years MSEX has always been profitable.
MSEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MSEX has a better Return On Assets (3.29%) than 66.67% of its industry peers.
MSEX has a better Return On Equity (9.43%) than 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 4.85%.
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
MSEX's Profit Margin of 22.10% is fine compared to the rest of the industry. MSEX outperforms 73.33% of its industry peers.
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.
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 | 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 1.19. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.19, MSEX is doing good in the industry, outperforming 66.67% 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.
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 | 1.19 |
ROIC/WACC0.41
WACC8.34%
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 Current ratio of 0.41. This is amonst the worse of the industry: MSEX underperforms 86.67% of its industry peers.
A Quick Ratio of 0.35 indicates that MSEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, MSEX is doing worse than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
MSEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.48%, which is quite good.
MSEX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.31% yearly.
Looking at the last year, MSEX shows a quite strong growth in Revenue. The Revenue has grown by 11.91% in the last year.
MSEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)17.48%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%1.69%
Revenue 1Y (TTM)11.91%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%0.36%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.58% on average over the next years. This is quite good.
EPS Next Y1.04%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y7.62%
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 24.18 indicates a rather expensive valuation of MSEX.
The rest of the industry has a similar Price/Earnings ratio as MSEX.
MSEX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
MSEX is valuated rather expensively with a Price/Forward Earnings ratio of 21.12.
The rest of the industry has a similar Price/Forward Earnings ratio as MSEX.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, MSEX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 21.12 |
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 | 17.12 |
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)23.33
PEG (5Y)5.61
EPS Next 2Y5.92%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, MSEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, MSEX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, MSEX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of MSEX is nicely growing with an annual growth rate of 6.43%!
MSEX has paid a dividend for at least 10 years, which is 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 55.79% 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.
DP55.79%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
NASDAQ:MSEX (10/21/2025, 12:47:03 PM)
58.515
-1.52 (-2.52%)
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 Cap1.05B
Analysts82.22
Price Target65.28 (11.56%)
Short Float %2.75%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)-3.52%
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 | 24.18 | ||
| Fwd PE | 21.12 | ||
| P/S | 5.38 | ||
| P/FCF | N/A | ||
| P/OCF | 14.46 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 17.12 |
EPS(TTM)2.42
EY4.14%
EPS(NY)2.77
Fwd EY4.74%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY6.92%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)23.33
PEG (5Y)5.61
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%
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 | 0.88 | ||
| 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 | 1.19 |
F-Score7
WACC8.34%
ROIC/WACC0.41
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)17.48%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%1.69%
EPS Next Y1.04%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)11.91%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%0.36%
Revenue Next Year6.51%
Revenue Next 2Y7.62%
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%