Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $327.61M
• Dividend Yield: 3.71%
• Average Volume (3M): 54.75K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.37
• Revenue Growth: 9.20%
• EPS Growth: 18.90%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Water
• EPS (TTM): 1.98
• Shares Outstanding: 9,421,542
• 10 Day Avg. Volume: 48,882
• 30 Day Avg. Volume: 54,750
• PEG Ratio: 0.85
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.99
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Artesian Resources achieves a strong overall score driven by its solid financial performance, characterized by robust profitability and improved cash flow management. The company's stable technical indicators and fair valuation further support its market position. The stock is well-positioned for sustainable growth, particularly appealing to investors seeking stability and income in the regulated water industry.

Artesian Resources Business Overview & Revenue Model

Company Description

Artesian Resources Corporation (ARTNA) is a prominent provider of water, wastewater, and other related services, primarily operating in the Mid-Atlantic region of the United States. As a holding company, it engages primarily in the provision of water utility services through its subsidiaries. Artesian Water Company, the main subsidiary, delivers water to residential, commercial, and industrial customers. The company is committed to ensuring high-quality water supply and maintaining infrastructure to support sustainable water management.

How the Company Makes Money

Artesian Resources generates revenue primarily through the sale of water services to its customer base, which includes residential, commercial, and industrial users. The company's revenue model is based on regulated water utility operations, where rates are set by state regulatory commissions ensuring stable and predictable income. Additional revenue streams include wastewater services and other related operations such as water system maintenance services. Artesian Resources also benefits from infrastructure investments and improvements which are often supported through state or federal funding and grants aimed at enhancing water quality and service reliability. The company's strategic partnerships with municipal and government entities further enhance its service offerings and contribute to its financial performance.

Artesian Resources Financial Statement Overview

Summary

Artesian Resources presents a strong financial profile with solid growth, robust profitability, and improving cash flow management. While leverage is low, further optimization could enhance financial strength. The company's focus on efficient cost management and cash flow improvement positions it well within the industry for sustainable growth.

Income Statement

Artesian Resources exhibits solid growth with a revenue increase of 9.19% from the previous year. The gross profit margin is strong at 49.48%, and the net profit margin stands at 18.89%, indicating efficient cost management. The EBIT and EBITDA margins are also robust at 24.23% and 46.43%, respectively. Overall, the company's profitability and growth trajectory are commendable, with no significant weaknesses apparent in this vertical.

Balance Sheet

The company maintains a prudent financial structure with a relatively low debt-to-equity ratio of 0.01. The return on equity is healthy at 8.52%, reflecting effective utilization of shareholders' funds. The equity ratio of 29.95% indicates a balanced approach to funding assets through equity. While the company demonstrates stability, its leverage could be optimized further to enhance financial resilience.

Cash Flow

Artesian Resources shows a substantial improvement in free cash flow, transitioning from negative to positive, signaling better cash management. The operating cash flow to net income ratio of 1.56 indicates strong cash generation capability relative to earnings. The free cash flow to net income ratio is also positive at 1.56, reflecting a turnaround in cash flow management. Despite the positive trends, continued attention to capital expenditures will be beneficial.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
107.95M	98.86M	98.90M	90.86M	88.14M
	Gross Profit
53.41M	48.23M	48.27M	45.50M	44.53M
	EBIT
26.15M	22.45M	23.91M	22.29M	22.30M
	EBITDA
50.12M	42.13M	42.40M	39.92M	39.12M
	Net Income Common Stockholders
20.39M	16.70M	18.00M	16.83M	16.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15M	2.50M	1.31M	92.00K	28.00K
	Total Assets
798.62M	766.83M	719.79M	625.21M	593.22M
	Total Debt
2.57M	181.06M	198.26M	171.99M	171.34M
	Net Debt
1.42M	178.56M	196.95M	171.90M	171.31M
	Total Liabilities
559.43M	536.43M	531.86M	447.20M	423.79M
	Stockholders Equity
239.19M	230.40M	187.93M	178.01M	169.43M
Cash Flow		Free Cash Flow
31.85M	-30.33M	-24.22M	-9.50M	-13.92M
	Operating Cash Flow
31.85M	31.85M	24.27M	31.31M	20.36M
	Investing Cash Flow
-62.08M	-62.08M	-54.76M	-40.72M	-39.97M
	Financing Cash Flow
31.42M	31.42M	31.71M	9.48M	19.05M

Artesian Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTNA, the sentiment is Negative. The current price of 32.21 is above the 20-day moving average (MA) of 31.99, above the 50-day MA of 31.76, and below the 200-day MA of 33.93, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 72.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARTNA.

Artesian Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJW	79 Outperform	$1.74B	17.77	7.23%	3.18%	11.65%	6.78%
CWT	77 Outperform	$2.83B	14.60	12.46%	2.40%	30.48%	267.73%
ARTNA	76 Outperform	$327.61M	16.08	8.69%	3.71%	9.20%	18.90%
WTRG	71 Outperform	$10.56B	17.66	9.84%	3.41%	1.57%	16.50%
AWR	69 Neutral	$2.90B	23.81	14.01%	2.43%	-0.04%	-5.82%
Sector *	65 Neutral	$11.76B	15.57	6.23%	4.62%	5.52%	-8.96%
YORW	61 Neutral	$475.28M	23.31	8.99%	2.56%	5.53%	-14.72%

Artesian Resources Corporate Events

Artesian Resources Proposes New Customer Rate Increase

On April 4, 2025, Artesian Water Company filed a request with the Delaware Public Service Commission to implement new customer rates aimed at increasing revenue by 12.41%, or approximately $10.8 million annually. The proposed rate changes are intended to support ongoing capital improvements and cover rising operational costs. Customers would see an incremental increase of 10.75% due to adjustments in the Distribution System Infrastructure Charge. Temporary rates may be applied 60 days post-application acceptance, pending final approval.

Spark’s Take on ARTNA Stock

According to Spark, TipRanks’ AI Analyst, ARTNA is a Outperform.

Artesian Resources achieves a strong overall score driven by its solid financial performance, characterized by robust profitability and improved cash flow management. The company’s stable technical indicators and fair valuation further support its market position. The stock is well-positioned for sustainable growth, particularly appealing to investors seeking stability and income in the regulated water industry.

To see Spark’s full report on ARTNA stock, click here.

Artesian Resources Appoints Nicholle R. Taylor as CEO

On February 22, 2025, Artesian Resources Corporation appointed Nicholle R. Taylor as the Chief Executive Officer and President, transitioning from her interim role which began on January 3, 2025. Nicholle R. Taylor, with a long tenure at the company since 1991, has held various leadership positions, including Senior Vice President and President of Artesian Water Company. Her appointment marks a leadership change as Dian C. Taylor steps down from her roles as CEO and President.

Artesian Resources Announces Kenneth Biederman’s Upcoming Resignation

On February 4, 2025, Kenneth R. Biederman informed Artesian Resources Corporation of his decision to resign from his roles, including as a director and from several board committees, effective May 6, 2025, following the annual stockholders meeting. His resignation was not due to any disagreement with the company, and the company expressed gratitude for his contributions.