Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $352.78M
• Dividend Yield: 3.59%
• Average Volume (3M): 31.77K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.36
• Revenue Growth: 8.31%
• EPS Growth: 21.97%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Water
• EPS (TTM): 0.53
• Shares Outstanding: 9,426,633
• 10 Day Avg. Volume: 25,519
• 30 Day Avg. Volume: 31,772
• 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: 2.13
• 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: 75 Outperform
• Price Target: $39.00 ▲(13.24%Upside)

Artesian Resources shows solid financial performance with strong revenue growth and profitability, which is the most significant contributor to the stock score. The valuation is reasonable with an attractive dividend yield, supporting the stock's appeal. However, technical analysis indicates a neutral trend, and the corporate governance issue presents a potential risk, slightly dampening the overall score.

Artesian Resources Business Overview & Revenue Model

Company Description

Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services in Delaware, Maryland, and Pennsylvania. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater collection, treatment infrastructure, and wastewater services to customers in Delaware. It also provides contract water and wastewater services; water, sewer, and internal service line protection plans; and wastewater management services, as well as design, construction, and engineering services. In addition, the company offers services to other water utilities, including operations and billing functions; owns real estate properties, including land for office buildings, a water treatment plant, and wastewater facility; and provides design, installation, maintenance, and repair services related to existing or proposed storm water management systems. As of December 31, 2021, it served approximately 91,700 customers in Delaware, 2,500 customers in Maryland, and 40 customers in Pennsylvania through 1,368 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.

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 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
	EBIT
26.98M	26.15M	22.45M	23.91M	22.29M	22.30M
	EBITDA
51.20M	50.12M	42.13M	42.40M	39.92M	39.12M
	Net Income Common Stockholders
21.42M	20.39M	16.70M	18.00M	16.83M	16.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.71M	1.15M	2.50M	1.31M	92.00K	28.00K
	Total Assets
808.85M	798.62M	766.83M	719.79M	625.21M	593.22M
	Total Debt
178.92M	179.11M	181.06M	198.26M	171.99M	171.34M
	Net Debt
175.21M	177.96M	178.56M	196.95M	171.90M	171.31M
	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: 34.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 34.44 is above the 20-day moving average (MA) of 33.89, above the 50-day MA of 33.76, and above the 200-day MA of 33.10, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 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	75 Outperform	$258.34M	18.27	11.12%	―	58.77%	116.91%
ARTNA	75 Outperform	$352.78M	16.46	9.04%	3.59%	8.31%	21.97%
MSEX	72 Outperform	$1.03B	23.94	9.80%	2.37%	16.02%	18.29%
CWCO	69 Neutral	$451.40M	17.09	7.83%	1.55%	-31.57%	-18.12%
GWRS	65 Neutral	$296.47M	46.15	9.11%	2.81%	3.94%	-8.78%
Sector *	64 Neutral	$8.54B	10.40	4.24%	4.63%	4.14%	-13.05%
YORW	58 Neutral	$470.60M	23.90	8.63%	2.68%	3.45%	-19.90%

Artesian Resources Corporate Events

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.