MIDDLESEX WATER CO (MSEX) Stock Fundamental Analysis
NASDAQ:MSEX - Nasdaq - US5966801087 - Common Stock - Currency: USD
Overall MSEX gets a fundamental rating of 4 out of 10. We evaluated MSEX 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.
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.
Each year in the past 5 years MSEX has been profitable.
Each year in the past 5 years MSEX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.29%, MSEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MSEX has a Return On Equity (9.43%) which is in line with its industry peers.
MSEX's Return On Invested Capital of 3.38% is in line compared to the rest of the industry. MSEX outperforms 50.00% of 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 5.00%.
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
With a decent Profit Margin value of 22.10%, MSEX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
MSEX's Profit Margin has declined in the last couple of years.
MSEX's Operating Margin of 27.32% is in line compared to the rest of the industry. MSEX outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of MSEX has remained more or less at the same level.
| 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
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.
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
MSEX has an Altman-Z score of 1.09. This is a bad value and indicates that MSEX is not financially healthy and even has some risk of bankruptcy.
MSEX has a Altman-Z score (1.09) which is in line with its industry peers.
MSEX has a Debt/Equity ratio of 0.88. This is a neutral value indicating MSEX is somewhat dependend on debt financing.
MSEX has a better Debt to Equity ratio (0.88) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.46
WACC7.3%
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.
The Current ratio of MSEX (0.41) is worse 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.
MSEX has a Quick ratio of 0.35. This is amonst the worse of the industry: MSEX underperforms 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.
MSEX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.31% yearly.
MSEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.91%.
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
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
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 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
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
Based on the Price/Earnings ratio of 22.01, the valuation of MSEX can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as MSEX.
MSEX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 19.25, MSEX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MSEX.
MSEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSEX is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.34 |
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)6.26
PEG (5Y)5.11
EPS Next 2Y5.85%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, MSEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.40, MSEX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, MSEX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
5.3 Sustainability
55.79% 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.
DP55.79%
EPS Next 2Y5.85%
EPS Next 3Y8.46%
53.27
+1.55 (+3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner Change-1.22%
Ins Owners0.97%
Ins Owner Change8.91%
Market Cap959.93M
Analysts82.22
Price Target65.28 (22.55%)
Short Float %2.72%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)-2.51%
PT rev (3m)-2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-2.41%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.25 | ||
| P/S | 4.9 | ||
| P/FCF | N/A | ||
| P/OCF | 13.16 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 15.34 |
EPS(TTM)2.42
EY4.54%
EPS(NY)2.77
Fwd EY5.2%
FCF(TTM)-1.56
FCFYN/A
OCF(TTM)4.05
OCFY7.6%
SpS10.87
BVpS25.48
TBVpS25.48
PEG (NY)6.26
PEG (5Y)5.11
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 | 1.09 |
F-Score7
WACC7.3%
ROIC/WACC0.46
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 Y3.51%
EPS Next 2Y5.85%
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 Year7.6%
Revenue Next 2Y7.54%
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%