MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
54.38 USD
+0.9 (+1.68%)
54.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MSEX. MSEX was compared to 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 quite expensive at the moment. 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
MSEX has a Return On Assets of 3.29%. This is in the better half of the industry: MSEX outperforms 64.29% of its industry peers.
MSEX has a Return On Equity of 9.43%. This is in the better half of the industry: MSEX outperforms 64.29% 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 50.00% 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 4.98%.
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 has a better Profit Margin (22.10%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of MSEX has declined.
MSEX has a Operating Margin of 27.32%. This is comparable to the rest of the industry: MSEX outperforms 50.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MSEX is destroying value.
MSEX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSEX has more shares outstanding
Compared to 1 year ago, MSEX has an improved debt to assets ratio.
2.2 Solvency
MSEX has an Altman-Z score of 1.12. 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 1.12, MSEX is doing good in the industry, outperforming 64.29% 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.
The Debt to Equity ratio of MSEX (0.88) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.44
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.41 indicates that MSEX may have some problems paying its short term obligations.
MSEX has a worse Current ratio (0.41) than 85.71% of its industry peers.
A Quick Ratio of 0.35 indicates that MSEX may have some problems paying its short term obligations.
MSEX has a Quick ratio of 0.35. This is amonst the worse of the industry: MSEX underperforms 85.71% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 4.31% on average over the past years.
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
MSEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
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
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 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 22.47, the valuation of MSEX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MSEX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.41. MSEX is around the same levels.
A Price/Forward Earnings ratio of 19.62 indicates a rather expensive valuation of MSEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSEX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MSEX to the average of the S&P500 Index (22.87), we can say MSEX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 19.62 |
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 | 15.91 |
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)21.68
PEG (5Y)5.21
EPS Next 2Y5.92%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 2.56%.
MSEX's Dividend Yield is comparable with the industry average which is at 3.38.
MSEX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of MSEX is nicely growing with an annual growth rate of 6.43%!
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)6.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.79% 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.
DP55.79%
EPS Next 2Y5.92%
EPS Next 3Y8.46%
54.38
+0.9 (+1.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.22%
Inst Owner Change-2.52%
Ins Owners0.96%
Ins Owner Change9.84%
Market Cap979.93M
Analysts82.22
Price Target65.28 (20.04%)
Short Float %2.98%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)0.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 19.62 | ||
| P/S | 5 | ||
| P/FCF | N/A | ||
| P/OCF | 13.44 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 15.91 |
EPS(TTM)2.42
EY4.45%
EPS(NY)2.77
Fwd EY5.1%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.44%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)21.68
PEG (5Y)5.21
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 | 1.12 |
F-Score7
WACC7.72%
ROIC/WACC0.44
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%