MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
USA - NASDAQ:MSEX - US5966801087 - Common Stock
60.36 USD
0 (0%)
60.36 USD
0 (0%)
MSEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 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
In the past year MSEX was profitable.
In the past year MSEX had a positive cash flow from operations.
MSEX had positive earnings in each of the past 5 years.
MSEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MSEX (3.29%) is better than 66.67% of its industry peers.
With a decent Return On Equity value of 9.43%, MSEX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 4.85%.
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 73.33% 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
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.
MSEX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSEX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
MSEX has a Altman-Z score of 1.20. This is in the better half of the industry: MSEX outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that MSEX is somewhat dependend on debt financing.
MSEX's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. MSEX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.2 |
ROIC/WACC0.41
WACC8.35%
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 86.67% of its industry peers.
A Quick Ratio of 0.35 indicates that MSEX may have some problems paying its short term obligations.
MSEX's Quick ratio of 0.35 is on the low side compared to the rest of the industry. MSEX is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.48% over the past year.
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
Based on estimates for the next years, MSEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% 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 9.58% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 24.94 indicates a rather expensive valuation of MSEX.
MSEX's Price/Earnings ratio is in line with the industry average.
MSEX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.78, which indicates a rather expensive current 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 (22.92), we can say MSEX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSEX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.19 |
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)24.06
PEG (5Y)5.78
EPS Next 2Y5.92%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
MSEX has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.17, MSEX is paying slightly less dividend.
With a Dividend Yield of 1.20, MSEX pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
On average, the dividend of MSEX grows each year by 6.43%, which is quite nice.
MSEX has been paying a dividend for at least 10 years, so it has 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.
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%
60.36
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.4%
Inst Owner Change-0.06%
Ins Owners0.96%
Ins Owner Change-0.36%
Market Cap1.09B
Revenue(TTM)195.83M
Net Income(TTM)43.29M
Analysts82.22
Price Target65.28 (8.15%)
Short Float %2.72%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)-2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 21.78 | ||
| P/S | 5.55 | ||
| P/FCF | N/A | ||
| P/OCF | 14.91 | ||
| P/B | 2.37 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 17.19 |
EPS(TTM)2.42
EY4.01%
EPS(NY)2.77
Fwd EY4.59%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY6.71%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)24.06
PEG (5Y)5.78
Graham Number37.25
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%
ROICexgc growth 3Y9.39%
ROICexgc 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 | 1.2 |
F-Score7
WACC8.35%
ROIC/WACC0.41
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%
MIDDLESEX WATER CO / MSEX FAQ
Can you provide the ChartMill fundamental rating for MIDDLESEX WATER CO?
ChartMill assigns a fundamental rating of 4 / 10 to MSEX.
What is the valuation status for MSEX stock?
ChartMill assigns a valuation rating of 1 / 10 to MIDDLESEX WATER CO (MSEX). This can be considered as Overvalued.
How profitable is MIDDLESEX WATER CO (MSEX) stock?
MIDDLESEX WATER CO (MSEX) has a profitability rating of 5 / 10.
What is the financial health of MIDDLESEX WATER CO (MSEX) stock?
The financial health rating of MIDDLESEX WATER CO (MSEX) is 2 / 10.
What is the expected EPS growth for MIDDLESEX WATER CO (MSEX) stock?
The Earnings per Share (EPS) of MIDDLESEX WATER CO (MSEX) is expected to grow by 1.04% in the next year.