MIDDLESEX WATER CO (MSEX)
US5966801087 - Common Stock
MSEX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. MSEX has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, MSEX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MSEX had positive earnings in the past year.
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
MSEX has a Return On Assets (2.54%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.39%, MSEX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.64%, MSEX is doing worse than 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSEX is below the industry average of 5.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 7.39% | ||
| ROIC | 2.64% |
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
Looking at the Profit Margin, with a value of 18.89%, MSEX is in the better half of 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 (23.59%) which is in line with its industry peers.
MSEX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.59% | ||
| PM (TTM) | 18.89% | ||
| 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
MSEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MSEX has been increased compared to 1 year ago.
The number of shares outstanding for MSEX has been increased compared to 5 years ago.
MSEX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
MSEX has a better Altman-Z score (1.11) than 64.29% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that MSEX is somewhat dependend on debt financing.
MSEX has a Debt to Equity ratio of 0.94. This is comparable to the rest of the industry: MSEX outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.34
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.05 indicates that MSEX should not have too much problems paying its short term obligations.
MSEX has a Current ratio (1.05) which is comparable to the rest of the industry.
A Quick Ratio of 0.98 indicates that MSEX may have some problems paying its short term obligations.
MSEX has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
MSEX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.02%.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
Looking at the last year, MSEX shows a small growth in Revenue. The Revenue has grown by 2.37% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)-26.02%
EPS 3Y-6.89%
EPS 5Y-2.13%
EPS growth Q2Q-20%
Revenue 1Y (TTM)2.37%
Revenue growth 3Y5.5%
Revenue growth 5Y3.78%
Revenue growth Q2Q-0.56%
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 16.38% on average per year.
Based on estimates for the next years, MSEX will show a quite strong growth in Revenue. The Revenue will grow by 9.06% on average per year.
EPS Next Y30.98%
EPS Next 2Y18.18%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue Next Year10.62%
Revenue Next 2Y7.65%
Revenue Next 3Y9.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.09 indicates a quite expensive valuation of MSEX.
MSEX's Price/Earnings ratio is in line with the industry average.
MSEX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.02.
MSEX is valuated rather expensively with a Price/Forward Earnings ratio of 22.21.
MSEX's Price/Forward Earnings is on the same level as the industry average.
MSEX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 22.21 |
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 | 18.38 |
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.
MSEX's earnings are expected to grow with 16.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y18.18%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, MSEX has a reasonable but not impressive dividend return.
MSEX's Dividend Yield is a higher than the industry average which is at 3.84.
MSEX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of MSEX is nicely growing with an annual growth rate of 6.75%!
MSEX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MSEX decreased recently.
Dividend Growth(5Y)6.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
71.84% of the earnings are spent on dividend by MSEX. This is not a sustainable payout ratio.
The dividend of MSEX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.84%
EPS Next 2Y18.18%
EPS Next 3Y16.38%
MIDDLESEX WATER CO
NASDAQ:MSEX (4/30/2024, 12:30:44 PM)
51.19
+0.75 (+1.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap912.21M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 22.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 7.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.59% | ||
| PM (TTM) | 18.89% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-26.02%
EPS 3Y-6.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y30.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.37%
Revenue growth 3Y5.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y