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Artesian Resources (ARTNA)
NASDAQ:ARTNA
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Artesian Resources (ARTNA) AI Stock Analysis

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ARTNA

Artesian Resources

(NASDAQ:ARTNA)

Rating:75Outperform
Price Target:
$37.00
▲(11.31% Upside)
Artesian Resources demonstrates strong financial performance with solid revenue growth and profitability. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, technical indicators suggest a lack of strong momentum, and the continuous negative free cash flow due to high capital expenditures is a concern.

Artesian Resources (ARTNA) vs. SPDR S&P 500 ETF (SPY)

Artesian Resources Business Overview & Revenue Model

Company DescriptionArtesian 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 MoneyArtesian Resources generates revenue primarily through the sale of water and wastewater treatment services to its customers. The company charges customers based on consumption, with rates set by state regulatory bodies. Key revenue streams include residential and commercial water sales, as well as wastewater services. Additionally, Artesian often engages in infrastructure projects and capital investments that may be funded through bonds or partnerships with governmental agencies, further enhancing its revenue potential. The company's regulatory environment allows for the recovery of infrastructure costs through rate adjustments, which also contributes to its earnings.

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
84
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.29M107.95M98.86M98.90M90.86M88.14M
Gross Profit54.38M53.41M48.23M48.27M45.50M44.53M
EBITDA51.20M50.12M42.13M42.40M39.92M39.12M
Net Income21.42M20.39M16.70M18.00M16.83M16.82M
Balance Sheet
Total Assets808.85M798.62M766.83M719.79M625.21M593.22M
Cash, Cash Equivalents and Short-Term Investments3.71M1.15M2.50M1.31M92.00K28.00K
Total Debt178.92M179.11M181.06M198.26M171.99M171.34M
Total Liabilities567.20M559.43M536.43M531.86M447.20M423.79M
Stockholders Equity241.65M239.19M230.40M187.93M178.01M169.43M
Cash Flow
Free Cash Flow-12.23M-9.12M-30.33M-24.22M-9.50M-13.92M
Operating Cash Flow35.19M36.82M31.85M24.27M31.31M20.36M
Investing Cash Flow-47.39M-45.32M-62.08M-54.76M-40.72M-39.97M
Financing Cash Flow6.41M7.14M31.42M31.71M9.48M19.05M

Artesian Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price33.24
Price Trends
50DMA
33.11
Negative
100DMA
33.39
Negative
200DMA
32.36
Positive
Market Momentum
MACD
-0.03
Positive
RSI
47.55
Neutral
STOCH
14.31
Positive
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 33.24 is above the 20-day moving average (MA) of 33.16, above the 50-day MA of 33.11, and above the 200-day MA of 32.36, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARTNA.

Artesian Resources Risk Analysis

Artesian Resources disclosed 24 risk factors in its most recent earnings report. Artesian Resources reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Artesian Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$959.39M22.019.70%2.51%11.91%16.88%
75
Outperform
$340.49M15.049.34%3.70%7.13%22.19%
75
Outperform
$253.02M18.6210.47%40.29%124.50%
74
Outperform
$534.18M33.047.94%1.39%-26.34%-61.52%
66
Neutral
$17.25B17.995.54%3.64%6.63%11.55%
61
Neutral
$443.31M22.208.56%2.80%4.09%-14.30%
61
Neutral
$266.77M42.958.96%3.10%4.33%-13.38%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARTNA
Artesian Resources
33.24
-1.84
-5.25%
CWCO
Consolidated Water Co
33.79
9.28
37.86%
MSEX
Middlesex Water Company
54.17
-6.35
-10.49%
PCYO
Pure Cycle
11.02
1.17
11.88%
YORW
The York Water Company
31.01
-5.96
-16.12%
GWRS
Global Water Resources
9.78
-2.63
-21.19%

Artesian Resources Corporate Events

Executive/Board Changes
Artesian Resources Appoints Salvatore Rossi to Board
Neutral
Jul 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2025