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MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis

NASDAQ:MSEX - Nasdaq - US5966801087 - Common Stock - Currency: USD

57.87  +0.67 (+1.17%)

After market: 57.87 0 (0%)

Fundamental Rating

4

Overall MSEX gets a fundamental rating of 4 out of 10. We evaluated MSEX against 14 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.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

MSEX had positive earnings in the past year.
In the past year MSEX had a positive cash flow from operations.
In the past 5 years MSEX has always been profitable.
MSEX had a positive operating cash flow in each of the past 5 years.
MSEX Yearly Net Income VS EBIT VS OCF VS FCFMSEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M

1.2 Ratios

MSEX has a better Return On Assets (3.37%) than 71.43% of its industry peers.
MSEX has a Return On Equity of 9.55%. This is in the better half of the industry: MSEX outperforms 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.58%, MSEX is in line with its industry, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSEX is in line with the industry average of 5.08%.
The 3 year average ROIC (3.15%) for MSEX is below the current ROIC(3.58%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.37%
ROE 9.55%
ROIC 3.58%
ROA(3y)3.33%
ROA(5y)3.5%
ROE(3y)9.27%
ROE(5y)9.73%
ROIC(3y)3.15%
ROIC(5y)3.07%
MSEX Yearly ROA, ROE, ROICMSEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

MSEX has a Profit Margin of 22.00%. This is in the better half of the industry: MSEX outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of MSEX has declined.
MSEX has a Operating Margin (28.06%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MSEX has remained more or less at the same level.
Industry RankSector Rank
OM 28.06%
PM (TTM) 22%
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
MSEX Yearly Profit, Operating, Gross MarginsMSEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for MSEX has been reduced compared to a year ago.
MSEX Yearly Shares OutstandingMSEX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
MSEX Yearly Total Debt VS Total AssetsMSEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of 1.21, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
MSEX's Altman-Z score of 1.21 is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that MSEX is somewhat dependend on debt financing.
The Debt to Equity ratio of MSEX (0.85) is better than 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Altman-Z 1.21
ROIC/WACC0.44
WACC8.12%
MSEX Yearly LT Debt VS Equity VS FCFMSEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

MSEX has a Current Ratio of 0.46. This is a bad value and indicates that MSEX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MSEX (0.46) is worse than 92.86% of its industry peers.
MSEX has a Quick Ratio of 0.46. 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 Quick ratio (0.39) than 92.86% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.39
MSEX Yearly Current Assets VS Current LiabilitesMSEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.31% 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 16.01% in the last year.
Measured over the past years, MSEX shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)19.31%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-10.17%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%9.32%

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 Y3.45%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year10.25%
Revenue Next 2Y9.03%
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.
MSEX Yearly Revenue VS EstimatesMSEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
MSEX Yearly EPS VS EstimatesMSEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.01 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 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.86 indicates a rather expensive valuation of MSEX.
The rest of the industry has a similar Price/Forward Earnings ratio as MSEX.
When comparing the Price/Forward Earnings ratio of MSEX to the average of the S&P500 Index (22.20), we can say MSEX is valued inline with the index average.
Industry RankSector Rank
PE 24.01
Fwd PE 20.86
MSEX Price Earnings VS Forward Price EarningsMSEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 16.28
MSEX Per share dataMSEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

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)6.97
PEG (5Y)5.57
EPS Next 2Y5.98%
EPS Next 3Y8.46%

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5

5. Dividend

5.1 Amount

MSEX has a Yearly Dividend Yield of 2.34%.
MSEX's Dividend Yield is comparable with the industry average which is at 3.38.
Compared to an average S&P500 Dividend Yield of 2.40, MSEX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.34%

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.
MSEX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.43%
Div Incr Years2
Div Non Decr Years2
MSEX Yearly Dividends per shareMSEX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

55.41% 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.
DP55.41%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
MSEX Yearly Income VS Free CF VS DividendMSEX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M
MSEX Dividend Payout.MSEX Dividend Payout, showing the Payout Ratio.MSEX Dividend Payout.PayoutRetained Earnings

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MIDDLESEX WATER CO

NASDAQ:MSEX (5/27/2025, 4:30:01 PM)

After market: 57.87 0 (0%)

57.87

+0.67 (+1.17%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners78.75%
Inst Owner Change4.84%
Ins Owners1.18%
Ins Owner Change8.54%
Market Cap1.04B
Analysts50
Price Target67.66 (16.92%)
Short Float %2.83%
Short Ratio2.64
Dividend
Industry RankSector Rank
Dividend Yield 2.34%
Yearly Dividend1.32
Dividend Growth(5Y)6.43%
DP55.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date05-15 2025-05-15 (0.34)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.39%
Min EPS beat(2)-8.84%
Max EPS beat(2)31.61%
EPS beat(4)2
Avg EPS beat(4)7.12%
Min EPS beat(4)-9.62%
Max EPS beat(4)31.61%
EPS beat(8)3
Avg EPS beat(8)-4.23%
EPS beat(12)3
Avg EPS beat(12)-11.1%
EPS beat(16)5
Avg EPS beat(16)-8.97%
Revenue beat(2)1
Avg Revenue beat(2)3.29%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)7.4%
Revenue beat(4)2
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)7.4%
Revenue beat(8)2
Avg Revenue beat(8)-4.54%
Revenue beat(12)2
Avg Revenue beat(12)-5.02%
Revenue beat(16)2
Avg Revenue beat(16)-4.61%
PT rev (1m)6.42%
PT rev (3m)8.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)4%
Valuation
Industry RankSector Rank
PE 24.01
Fwd PE 20.86
P/S 5.3
P/FCF N/A
P/OCF 15.75
P/B 2.3
P/tB 2.3
EV/EBITDA 16.28
EPS(TTM)2.41
EY4.16%
EPS(NY)2.77
Fwd EY4.79%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)3.68
OCFY6.35%
SpS10.92
BVpS25.15
TBVpS25.15
PEG (NY)6.97
PEG (5Y)5.57
Profitability
Industry RankSector Rank
ROA 3.37%
ROE 9.55%
ROCE 4.66%
ROIC 3.58%
ROICexc 3.59%
ROICexgc 3.59%
OM 28.06%
PM (TTM) 22%
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 RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Debt/EBITDA 4.54
Cap/Depr 264.06%
Cap/Sales 40.45%
Interest Coverage 3.95
Cash Conversion 77.6%
Profit Quality N/A
Current Ratio 0.46
Quick Ratio 0.39
Altman-Z 1.21
F-Score7
WACC8.12%
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)19.31%
EPS 3Y6.07%
EPS 5Y4.31%
EPS Q2Q%-10.17%
EPS Next Y3.45%
EPS Next 2Y5.98%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)16.01%
Revenue growth 3Y10.27%
Revenue growth 5Y7.35%
Sales Q2Q%9.32%
Revenue Next Year10.25%
Revenue Next 2Y9.03%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y31.98%
EBIT growth 3Y17.03%
EBIT growth 5Y8.43%
EBIT Next Year65.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y62.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.96%
OCF growth 3Y21.15%
OCF growth 5Y10.25%