Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $351.35M
• Dividend Yield: 3.52%
• Average Volume (3M): 39.13K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.35
• Revenue Growth: 8.31%
• EPS Growth: 21.97%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Water
• EPS (TTM): 0.53
• Shares Outstanding: 9,426,633
• 10 Day Avg. Volume: 39,980
• 30 Day Avg. Volume: 39,134
• PEG Ratio: 3.23
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.57
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 9.65
• Enterprise Value/Ebitda: 2.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Artesian Resources shows solid financial performance with a strong income statement and ability to generate cash flow, though negative free cash flow due to high capital expenditures is a concern. The technical analysis indicates neutral momentum, and the valuation is appealing for dividend investors.

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 demonstrates strong revenue growth, solid profitability, and balanced leverage. The company excels in generating operating cash flow, although continuous negative free cash flow due to high capital expenditures is a concern.

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
9.50M	1.15M	2.50M	1.31M	92.00K	28.00K
	Total Assets
775.41M	798.62M	766.83M	719.79M	625.21M	593.22M
	Total Debt
181.11M	179.11M	181.06M	198.26M	171.99M	171.34M
	Net Debt
171.61M	177.96M	178.56M	196.95M	171.90M	171.31M
	Total Liabilities
543.42M	559.43M	536.43M	531.86M	447.20M	423.79M
	Stockholders Equity
231.99M	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: 33.92
• 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 33.92 is below the 20-day moving average (MA) of 34.06, above the 50-day MA of 32.99, and above the 200-day MA of 33.24, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 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	77 Outperform	$261.23M	18.46	11.12%	―	58.77%	116.91%
ARTNA	74 Outperform	$351.35M	16.31	9.04%	3.52%	8.31%	21.97%
MSEX	72 Outperform	$1.06B	24.36	9.80%	2.28%	16.02%	18.29%
CWCO	69 Neutral	$428.80M	15.97	7.83%	1.60%	-31.57%	-18.12%
Sector *	63 Neutral	$8.57B	10.13	4.66%	4.38%	3.79%	-12.91%
GWRS	61 Neutral	$286.04M	44.53	9.11%	2.90%	3.94%	-8.78%
YORW	58 Neutral	$481.83M	24.05	8.63%	2.61%	3.45%	-19.90%

Artesian Resources Corporate Events

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.

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 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.