ARTESIAN RESOURCES CORP-CL A (ARTNA) Stock Fundamental Analysis
NASDAQ:ARTNA - Nasdaq - US0431132085 - Common Stock - Currency: USD
ARTNA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. There are concerns on the financial health of ARTNA while its profitability can be described as average. ARTNA has a correct valuation and a medium growth rate. Finally ARTNA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARTNA was profitable.
In the past year ARTNA had a positive cash flow from operations.
Each year in the past 5 years ARTNA has been profitable.
Each year in the past 5 years ARTNA had a positive operating cash flow.
1.2 Ratios
ARTNA has a Return On Assets (2.65%) which is comparable to the rest of the industry.
ARTNA's Return On Equity of 8.86% is in line compared to the rest of the industry. ARTNA outperforms 50.00% of its industry peers.
ARTNA has a Return On Invested Capital of 3.21%. This is in the lower half of the industry: ARTNA underperforms 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARTNA is below the industry average of 5.08%.
The last Return On Invested Capital (3.21%) for ARTNA is above the 3 year average (3.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 8.86% | ||
| ROIC | 3.21% |
ROA(3y)2.41%
ROA(5y)2.55%
ROE(3y)8.45%
ROE(5y)8.95%
ROIC(3y)3.04%
ROIC(5y)3.21%
1.3 Margins
With a Profit Margin value of 19.60%, ARTNA perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ARTNA has remained more or less at the same level.
With a decent Operating Margin value of 31.53%, ARTNA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
ARTNA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.53% | ||
| PM (TTM) | 19.6% | ||
| GM | N/A |
OM growth 3Y0.16%
OM growth 5Y0.63%
PM growth 3Y0.66%
PM growth 5Y1.13%
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 ARTNA is destroying value.
ARTNA has about the same amout of shares outstanding than it did 1 year ago.
ARTNA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARTNA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that ARTNA is in the distress zone and has some risk of bankruptcy.
ARTNA has a Altman-Z score of 0.80. This is in the lower half of the industry: ARTNA underperforms 71.43% of its industry peers.
ARTNA has a Debt/Equity ratio of 0.73. This is a neutral value indicating ARTNA is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.73, ARTNA is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.39
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.98 indicates that ARTNA may have some problems paying its short term obligations.
The Current ratio of ARTNA (0.98) is comparable to the rest of the industry.
A Quick Ratio of 0.77 indicates that ARTNA may have some problems paying its short term obligations.
ARTNA has a Quick ratio of 0.77. This is comparable to the rest of the industry: ARTNA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
ARTNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.35%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
Looking at the last year, ARTNA shows a quite strong growth in Revenue. The Revenue has grown by 8.31% in the last year.
ARTNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.25% yearly.
EPS 1Y (TTM)22.35%
EPS 3Y3.42%
EPS 5Y4.36%
EPS Q2Q%23.26%
Revenue 1Y (TTM)8.31%
Revenue growth 3Y5.91%
Revenue growth 5Y5.25%
Sales Q2Q%5.47%
3.2 Future
The Earnings Per Share is expected to grow by 7.22% on average over the next years.
ARTNA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y12.36%
EPS Next 2Y7.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.6%
Revenue Next 2Y5.06%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.22, ARTNA is valued correctly.
Based on the Price/Earnings ratio, ARTNA is valued cheaper than 92.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. ARTNA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.82, which indicates a correct valuation of ARTNA.
Based on the Price/Forward Earnings ratio, ARTNA is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.17. ARTNA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than ARTNA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.31
PEG (5Y)3.72
EPS Next 2Y7.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARTNA has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.40, ARTNA pays a better dividend. On top of this ARTNA pays more dividend than 92.86% of the companies listed in the same industry.
ARTNA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of ARTNA has a limited annual growth rate of 3.81%.
ARTNA has paid a dividend for at least 10 years, which is a reliable track record.
ARTNA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.81%
Div Incr Years30
Div Non Decr Years30
5.3 Sustainability
57.39% of the earnings are spent on dividend by ARTNA. This is a bit on the high side, but may be sustainable.
ARTNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.39%
EPS Next 2Y7.22%
EPS Next 3YN/A
33.73
-0.6 (-1.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners61.45%
Inst Owner Change-4.31%
Ins Owners2.41%
Ins Owner Change1.6%
Market Cap347.76M
Analysts86.67
Price Target46.92 (39.1%)
Short Float %0.63%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend1.18
Dividend Growth(5Y)3.81%
DP57.39%
Div Incr Years30
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.64%
Min EPS beat(2)12.26%
Max EPS beat(2)47.02%
EPS beat(4)3
Avg EPS beat(4)14.45%
Min EPS beat(4)-6.51%
Max EPS beat(4)47.02%
EPS beat(8)5
Avg EPS beat(8)9.78%
EPS beat(12)7
Avg EPS beat(12)4.33%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.4%
Min Revenue beat(2)0.53%
Max Revenue beat(2)4.27%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)4.27%
Revenue beat(8)2
Avg Revenue beat(8)-1.83%
Revenue beat(12)4
Avg Revenue beat(12)-0.73%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)8%
EPS NY rev (3m)8%
Revenue NQ rev (1m)3.57%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.82 | ||
| P/S | 3.18 | ||
| P/FCF | N/A | ||
| P/OCF | 9.88 | ||
| P/B | 1.44 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)2.08
EY6.17%
EPS(NY)2.28
Fwd EY6.75%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)3.41
OCFY10.12%
SpS10.6
BVpS23.44
TBVpS23.23
PEG (NY)1.31
PEG (5Y)3.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 8.86% | ||
| ROCE | 4.4% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.23% | ||
| ROICexgc | 3.24% | ||
| OM | 31.53% | ||
| PM (TTM) | 19.6% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.41%
ROA(5y)2.55%
ROE(3y)8.45%
ROE(5y)8.95%
ROIC(3y)3.04%
ROIC(5y)3.21%
ROICexc(3y)3.04%
ROICexc(5y)3.21%
ROICexgc(3y)3.05%
ROICexgc(5y)3.22%
ROCE(3y)4.2%
ROCE(5y)4.51%
ROICexcg growth 3Y-2.16%
ROICexcg growth 5Y-1.28%
ROICexc growth 3Y-2.24%
ROICexc growth 5Y-1.33%
OM growth 3Y0.16%
OM growth 5Y0.63%
PM growth 3Y0.66%
PM growth 5Y1.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 350.7% | ||
| Cap/Sales | 43.39% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 73.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.8 |
F-Score7
WACC8.16%
ROIC/WACC0.39
Cap/Depr(3y)395.84%
Cap/Depr(5y)367.69%
Cap/Sales(3y)51.49%
Cap/Sales(5y)47.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.35%
EPS 3Y3.42%
EPS 5Y4.36%
EPS Q2Q%23.26%
EPS Next Y12.36%
EPS Next 2Y7.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.31%
Revenue growth 3Y5.91%
Revenue growth 5Y5.25%
Sales Q2Q%5.47%
Revenue Next Year6.6%
Revenue Next 2Y5.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.58%
EBIT growth 3Y6.09%
EBIT growth 5Y5.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y62.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.25%
OCF growth 3Y5.55%
OCF growth 5Y14.31%