Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $326.66M
• Dividend Yield: 3.92%
• Average Volume (3M): 21.87K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.21
• Revenue Growth: 5.80%
• EPS Growth: 12.33%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.68
• Shares Outstanding: 9,431,693
• 10 Day Avg. Volume: 20,662
• 30 Day Avg. Volume: 21,870
• PEG Ratio: 0.86
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.02
• P/FCF Ratio: -35.69
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 4.59
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.16
• Revenue Forecast (FY): $112.00M

• Rating: 70 Outperform
• Price Target: $36.00 ▲(14.18% Upside)

Artesian Resources scores well due to its solid financial performance and reasonable valuation. The company's strong revenue growth and healthy profit margins are significant strengths. However, technical indicators are mixed, and negative free cash flow poses a challenge. The absence of earnings call data and corporate events limits the analysis to financial and technical factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its customer base and increase sales.

Profit Margins

Strong profit margins suggest efficient operations and pricing power, contributing to sustainable profitability over the long term.

Balance Sheet Health

A manageable level of leverage indicates financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Negative Free Cash Flow

Negative free cash flow highlights challenges in cash management and capital expenditure, potentially limiting the company's ability to fund growth internally.

Cost Pressures

A decline in gross profit margin suggests rising costs, which could pressure profitability if not managed effectively.

Cash Management Challenges

Challenges in cash management could impact the company's ability to maintain its growth trajectory and invest in future opportunities.

Artesian Resources Business Overview & Revenue Model

Company Description

Artesian Resources Corporation (ARTNA) is a publicly traded water utility company based in Delaware, primarily engaged in the provision of water services to residential, commercial, and industrial customers. The company operates through its subsidiaries, which include Artesian Water Company, Artesian Wastewater Management, and Artesian Resources, focusing on delivering high-quality drinking water and wastewater services. Artesian is committed to maintaining sustainable water resources and infrastructure while serving communities across the Delmarva Peninsula, emphasizing environmental stewardship and responsible resource management.

How the Company Makes Money

Artesian Resources generates revenue primarily through the sale of water to its customers, which includes residential, commercial, and industrial users. The company operates under regulated rates set by the Delaware Public Service Commission, allowing it to collect fees based on consumption and service availability. In addition to water sales, Artesian generates revenue through its wastewater management services. Key revenue streams include monthly water bills, connection fees for new customers, and infrastructure investment recoveries. The company also benefits from partnerships with local governments and organizations to ensure compliance with environmental standards and enhance community service offerings, contributing to its overall financial stability.

Artesian Resources Financial Statement Overview

Summary

Artesian Resources demonstrates solid financial performance with strong revenue growth and healthy profit margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust, although negative free cash flow poses a challenge. Overall, the company is on a positive trajectory, but attention to cash management and cost control is necessary to sustain growth.

Income Statement

Artesian Resources shows strong revenue growth with a TTM increase of 3.7%, indicating a positive trajectory. The company maintains healthy margins, with a gross profit margin of 47% and a net profit margin of 20.3% in the TTM. EBIT and EBITDA margins are also robust at 35.2% and 47.4%, respectively. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.72, showing a manageable level of leverage. Return on equity is moderate at 9.3%, indicating reasonable profitability for shareholders. The equity ratio stands at 29.9%, suggesting a solid equity base relative to total assets. However, the decrease in debt levels over the past year is a positive sign of improved financial health.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.42, indicating good cash generation relative to net income. However, the negative free cash flow and its ratio to net income at -48.5% highlight challenges in cash management and capital expenditure. The significant improvement in free cash flow growth rate is a positive development, but the negative free cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.78M	107.95M	98.86M	98.90M	90.86M	88.14M
Gross Profit	51.82M	53.41M	48.23M	48.27M	45.50M	44.53M
EBITDA	52.83M	50.12M	42.13M	42.40M	39.92M	39.12M
Net Income	22.53M	20.39M	16.70M	18.00M	16.83M	16.82M
Balance Sheet
Total Assets	833.91M	798.62M	766.83M	720.30M	625.31M	593.22M
Cash, Cash Equivalents and Short-Term Investments	0.00	1.15M	2.50M	1.31M	92.00K	28.00K
Total Debt	174.66M	179.11M	181.06M	198.31M	172.03M	171.34M
Total Liabilities	585.07M	559.43M	536.43M	532.37M	447.30M	423.79M
Stockholders Equity	248.84M	239.19M	230.40M	187.93M	178.01M	169.43M
Cash Flow
Free Cash Flow	21.57M	-9.12M	-30.33M	-24.22M	-9.50M	-13.92M
Operating Cash Flow	36.58M	36.82M	31.85M	24.27M	31.31M	20.36M
Investing Cash Flow	-55.40M	-45.32M	-62.08M	-54.76M	-40.72M	-39.97M
Financing Cash Flow	8.82M	7.14M	31.42M	31.71M	9.48M	19.05M

Artesian Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 31.53 is below the 20-day moving average (MA) of 31.79, below the 50-day MA of 32.24, and below the 200-day MA of 32.46, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 38.64 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
PCYO	73 Outperform	$269.22M	20.60	9.62%	―	-9.25%	12.89%
ARTNA	70 Outperform	$326.66M	14.34	9.25%	3.92%	5.80%	12.33%
YORW	69 Neutral	$465.52M	23.17	8.58%	2.69%	3.63%	-5.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GWRS	59 Neutral	$256.16M	54.50	6.30%	3.60%	7.06%	-38.94%
CDZI	55 Neutral	$452.12M	―	-136.36%	―	188.33%	4.12%
MSEX	55 Neutral	$939.81M	21.51	9.27%	2.69%	6.24%	3.35%

Artesian Resources Corporate Events

Artesian Resources Reports Strong Earnings Growth in 2025

Artesian Resources Corporation is a leading provider of water and wastewater services on the Delmarva Peninsula, known for its long-standing commitment to delivering high-quality utility services since 1905.