Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $350.23M
• Dividend Yield: 3.62%
• Average Volume (3M): 26.44K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.36
• Revenue Growth: 8.31%
• EPS Growth: 21.97%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.53
• Shares Outstanding: 9,426,633
• 10 Day Avg. Volume: 34,801
• 30 Day Avg. Volume: 26,438
• PEG Ratio: 5.01
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.89
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 13.81
• Enterprise Value/Ebitda: 3.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $37.00 ▲(8.95%Upside)

The overall score reflects solid financial performance and reasonable valuation, but technical indicators and corporate governance issues present challenges. The company's financial metrics are strong, but ongoing governance concerns weigh on the stock's prospects.

Artesian Resources Business Overview & Revenue Model

Company Description

Artesian Resources Corporation (ARTNA) is a leading provider of water, wastewater, and other related services on the Delmarva Peninsula. The company operates through its subsidiaries, offering a range of services primarily in Delaware, Maryland, and Pennsylvania. Artesian is dedicated to providing high-quality water and wastewater management solutions to residential, commercial, industrial, and governmental customers. The company's core products and services include the distribution of potable water, wastewater treatment, and management services, as well as related water resource management solutions.

How the Company Makes Money

Artesian Resources generates revenue primarily through its regulated utility operations, which involve the sale of water and wastewater services to customers. The company's earnings are largely derived from customer usage fees, which are regulated by state public utility commissions to ensure fair pricing. In addition to its core water services, Artesian also earns revenue from non-regulated operations, including the provision of water, wastewater, and other services to developers and municipalities. Significant partnerships with local governments and businesses, as well as its strategic focus on infrastructure investments, contribute to Artesian's financial performance. The company also benefits from its initiatives in water conservation and environmental stewardship, which help in maintaining sustainable revenue streams.

Artesian Resources Financial Statement Overview

Summary

Artesian Resources exhibits strong revenue growth and profitability, with efficient cost management reflected in a healthy gross profit margin. The balance sheet shows a stable financial structure, albeit with moderate leverage. The cash flow statement highlights challenges in generating free cash flow due to high capital expenditures, indicating a need for careful cash management.

Income Statement

Artesian Resources shows a strong income statement with consistent revenue growth and solid profitability. Revenue increased by 1.24% in the TTM period compared to the previous year. The company maintains a healthy gross profit margin of 49.76% and a net profit margin of 19.60% in TTM, indicating efficient cost management. However, the EBIT and EBITDA margins, at 24.68% and 46.86% respectively, show room for improvement compared to peers in the industry.

Balance Sheet

The balance sheet of Artesian Resources reflects a stable financial structure with some areas of concern. The debt-to-equity ratio stands at 0.74, which is reasonable for the industry but suggests moderate leverage. The equity ratio is at 29.88%, indicating a balanced approach to financing between debt and equity. Return on equity is robust at 8.86%, showcasing effective use of shareholder funds. However, the high debt level remains a potential risk factor.

Cash Flow

The cash flow statement reveals challenges in generating free cash flow, with negative free cash flow observed consistently. Despite a strong operating cash flow to net income ratio of 1.64, indicating good cash conversion, the free cash flow to net income ratio is negative due to high capital expenditures. This reflects significant investments in growth but also highlights the need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.29M	107.95M	98.86M	98.90M	90.86M	88.14M
Gross Profit	54.38M	53.41M	48.23M	48.27M	45.50M	44.53M
EBITDA	51.20M	50.12M	42.13M	42.40M	39.92M	39.12M
Net Income	21.42M	20.39M	16.70M	18.00M	16.83M	16.82M
Balance Sheet
Total Assets	808.85M	798.62M	766.83M	719.79M	625.21M	593.22M
Cash, Cash Equivalents and Short-Term Investments	3.71M	1.15M	2.50M	1.31M	92.00K	28.00K
Total Debt	178.92M	179.11M	181.06M	198.26M	171.99M	171.34M
Total Liabilities	567.20M	559.43M	536.43M	531.86M	447.20M	423.79M
Stockholders Equity	241.65M	239.19M	230.40M	187.93M	178.01M	169.43M
Cash Flow
Free Cash Flow	-12.23M	-9.12M	-30.33M	-24.22M	-9.50M	-13.92M
Operating Cash Flow	35.19M	36.82M	31.85M	24.27M	31.31M	20.36M
Investing Cash Flow	-47.39M	-45.32M	-62.08M	-54.76M	-40.72M	-39.97M
Financing Cash Flow	6.41M	7.14M	31.42M	31.71M	9.48M	19.05M

Artesian Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 33.96 is above the 20-day moving average (MA) of 33.70, above the 50-day MA of 33.94, and above the 200-day MA of 32.97, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARTNA.

Artesian Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	79 Outperform	$265.56M	18.69	11.12%	―	58.77%	116.91%
MSEX	72 Outperform	$1.00B	23.31	9.80%	2.43%	16.02%	18.29%
CWCO	72 Outperform	$492.46M	18.64	7.83%	1.81%	-31.57%	-18.12%
ARTNA	69 Neutral	$350.23M	16.33	9.04%	3.62%	8.31%	21.97%
Sector *	67 Neutral	$16.39B	16.97	4.47%	3.56%	4.77%	6.10%
GWRS	63 Neutral	$286.04M	44.53	9.11%	2.92%	3.94%	-8.78%
YORW	58 Neutral	$465.42M	23.63	8.63%	2.71%	3.45%	-19.90%

Artesian Resources Corporate Events

Artesian Resources Appoints Salvatore Rossi to Board

On July 1, 2025, Artesian Resources Corporation appointed Salvatore J. ‘Chip’ Rossi to its Board of Directors for the remainder of a three-year term ending in 2027. Rossi brings extensive financial expertise and risk management experience from his previous roles at Bank of America, where he served in various leadership positions. His understanding of the Delaware community and his qualifications make him a valuable addition to the board, where he will serve on several committees.

Artesian Resources Faces Nasdaq Compliance Challenge

On May 30, 2025, Artesian Resources Corporation received a notice from Nasdaq indicating non-compliance with rules requiring a majority of independent directors on its Board and an audit committee composed of at least three independent directors. This issue arose from a director’s resignation after the company’s annual meeting on May 6, 2025. The company is actively searching for a qualified independent director to fill the vacancy and is utilizing the cure period provided by Nasdaq to regain compliance by May 6, 2026, or earlier. However, there is no assurance that compliance will be achieved within this timeframe.

Artesian Resources Elects New Director at Shareholder Meeting

On May 6, 2025, Artesian Resources held its annual meeting of shareholders where Ms. Nicholle R. Taylor was elected as a director of the Board for a three-year term. Only holders of the Company’s Class B Common Stock were eligible to vote, and Ms. Taylor received 737,335 votes in favor. Additionally, Mr. Kenneth R. Biederman resigned from his position as a director, effective after the meeting.

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.