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MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis

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

54.67  -1.01 (-1.81%)

After market: 54.67 0 (0%)

Fundamental Rating

4

MSEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. There are concerns on the financial health of MSEX while its profitability can be described as average. MSEX is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

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.
Each year in the past 5 years MSEX has 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.
The Return On Equity of MSEX (9.55%) is better than 64.29% of its industry peers.
With a Return On Invested Capital value of 3.58%, MSEX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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 5.08%.
The last Return On Invested Capital (3.58%) for MSEX is above the 3 year average (3.15%), which is a sign of increasing profitability.
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

The Profit Margin of MSEX (22.00%) is better than 64.29% of its industry peers.
In the last couple of years the Profit Margin of MSEX has declined.
MSEX's Operating Margin of 28.06% is in line compared to the rest of the industry. MSEX outperforms 50.00% of its industry peers.
MSEX's Operating Margin has been stable in the last couple of years.
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.
MSEX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSEX has an improved debt to assets ratio.
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 1.17, we must say that MSEX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.17, MSEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that MSEX is somewhat dependend on debt financing.
MSEX has a Debt to Equity ratio of 0.85. This is in the better half of the industry: MSEX outperforms 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Altman-Z 1.17
ROIC/WACC0.44
WACC8.1%
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.
MSEX's Current ratio of 0.46 is on the low side compared to the rest of the industry. MSEX is outperformed by 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 Quick ratio of 0.39. This is amonst the worse of the industry: MSEX underperforms 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

MSEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.31%, which is quite good.
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.
The Revenue has grown by 16.01% in the past year. This is quite good.
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

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.
The Revenue is expected to grow by 9.58% on average over the next years. This is quite good.
EPS Next Y3.51%
EPS Next 2Y5.85%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year7.6%
Revenue Next 2Y7.54%
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.
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.
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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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.68, the valuation of MSEX can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as MSEX.
When comparing the Price/Earnings ratio of MSEX to the average of the S&P500 Index (27.41), we can say MSEX is valued inline with the index average.
The Price/Forward Earnings ratio is 19.75, which indicates a rather expensive current valuation of MSEX.
MSEX's Price/Forward Earnings ratio is in line with the industry average.
MSEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
Industry RankSector Rank
PE 22.68
Fwd PE 19.75
MSEX Price Earnings VS Forward Price EarningsMSEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 15.74
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 MSEX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.45
PEG (5Y)5.26
EPS Next 2Y5.85%
EPS Next 3Y8.46%

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4

5. Dividend

5.1 Amount

MSEX has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
MSEX's Dividend Yield is slightly below the industry average, which is at 3.32.
With a Dividend Yield of 1.24, MSEX pays less dividend than the S&P500 average, which is at 2.35.
Industry RankSector Rank
Dividend Yield 1.24%

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.
The dividend of MSEX decreased 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.
MSEX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.41%
EPS Next 2Y5.85%
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 (7/11/2025, 8:00:02 PM)

After market: 54.67 0 (0%)

54.67

-1.01 (-1.81%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners78.94%
Inst Owner Change0%
Ins Owners0.97%
Ins Owner Change8.13%
Market Cap979.69M
Analysts82.22
Price Target67.66 (23.76%)
Short Float %2.59%
Short Ratio3.81
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
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)0%
PT rev (3m)6.42%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)-2.39%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-2.41%
Revenue NY rev (3m)-3.32%
Valuation
Industry RankSector Rank
PE 22.68
Fwd PE 19.75
P/S 5.01
P/FCF N/A
P/OCF 14.88
P/B 2.17
P/tB 2.17
EV/EBITDA 15.74
EPS(TTM)2.41
EY4.41%
EPS(NY)2.77
Fwd EY5.06%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)3.68
OCFY6.72%
SpS10.92
BVpS25.15
TBVpS25.15
PEG (NY)6.45
PEG (5Y)5.26
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 1.17
F-Score7
WACC8.1%
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 Y3.51%
EPS Next 2Y5.85%
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 Year7.6%
Revenue Next 2Y7.54%
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%