MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
NASDAQ:MSEX - US5966801087 - Common Stock
53.54 USD
-0.28 (-0.52%)
53.54 USD
0 (0%)
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. MSEX is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years MSEX has always been profitable.
Each year in the past 5 years MSEX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MSEX (3.29%) is better than 64.29% of its industry peers.
MSEX has a better Return On Equity (9.43%) than 64.29% of its industry peers.
MSEX has a Return On Invested Capital (3.38%) which is in line with its industry peers.
MSEX had an Average Return On Invested Capital over the past 3 years of 3.15%. This is in line with the industry average of 4.98%.
The 3 year average ROIC (3.15%) for MSEX is below the current ROIC(3.38%), indicating increased profibility in the last year.
| 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 Profit Margin of 22.10%. This is in the better half of the industry: MSEX outperforms 71.43% of its industry peers.
MSEX's Profit Margin has declined in the last couple of years.
MSEX has a Operating Margin (27.32%) which is in line with its industry peers.
MSEX's Operating Margin has been stable in the last couple of years.
| 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.
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.
MSEX has a better debt/assets ratio than last year.
2.2 Solvency
MSEX has an Altman-Z score of 1.11. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
MSEX's Altman-Z score of 1.11 is fine compared to the rest of the industry. MSEX outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that 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 | 1.11 |
ROIC/WACC0.43
WACC7.81%
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 worse Current ratio (0.41) than 85.71% of its industry peers.
MSEX has a Quick 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.
The Quick ratio of MSEX (0.35) is worse than 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.
The Revenue has grown by 11.91% in the past year. This is quite good.
The Revenue has been growing slightly by 7.35% on average over the past years.
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.
MSEX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.58% yearly.
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
With a Price/Earnings ratio of 22.12, MSEX is valued on the expensive side.
MSEX's Price/Earnings is on the same level as the industry average.
MSEX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 19.32, MSEX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MSEX.
MSEX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
MSEX's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSEX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)21.34
PEG (5Y)5.13
EPS Next 2Y5.92%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
MSEX's Dividend Yield is comparable with the industry average which is at 3.39.
Compared to an average S&P500 Dividend Yield of 2.35, MSEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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%
53.54
-0.28 (-0.52%)
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 Change8.91%
Market Cap964.79M
Analysts82.22
Price Target65.28 (21.93%)
Short Float %2.52%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)-1.03%
PT rev (3m)-3.52%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)6.5%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 19.32 | ||
| P/S | 4.93 | ||
| P/FCF | N/A | ||
| P/OCF | 13.23 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 15.73 |
EPS(TTM)2.42
EY4.52%
EPS(NY)2.77
Fwd EY5.18%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.56%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)21.34
PEG (5Y)5.13
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 | 1.11 |
F-Score7
WACC7.81%
ROIC/WACC0.43
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%