Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $941.65M
• Dividend Yield: 2.7%
• Average Volume (3M): 157.87K
• Price to Earnings (P/E): 21.5
• Beta (1Y): -0.05
• Revenue Growth: 6.24%
• EPS Growth: 3.35%
• Country: US
• Employees: 360
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.77
• Shares Outstanding: 18,337,818
• 10 Day Avg. Volume: 141,388
• 30 Day Avg. Volume: 157,872
• PEG Ratio: 0.53
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 4.89
• P/FCF Ratio: -59.04
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 7.16
• Enterprise Value/Gross Profit: 14.65
• Enterprise Value/Ebitda: 15.06
• 1Y Price Target: $58.00
• Price Target Upside: 12.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.43
• Revenue Forecast (FY): $195.81M

• Rating: 55 Neutral
• Price Target: $54.00 ▲(5.16% Upside)

Middlesex Water Company's overall stock score is primarily influenced by its stable profitability and solid balance sheet, offset by declining revenue and cash flow challenges. The technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Stable Profitability

Stable profitability indicates consistent earnings, which supports long-term financial health and the ability to invest in infrastructure and services.

Solid Balance Sheet

A solid balance sheet with moderate leverage provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Regulated Utility Model

The regulated utility model ensures predictable revenue streams and stability, as rates are approved by regulatory agencies, allowing cost recovery and reasonable returns.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share or customer base, potentially impacting long-term growth and profitability.

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations, dividends, or new investments without external financing.

Reduced Operational Efficiency

Reduced operational efficiency can erode profit margins, affecting the company's ability to generate returns and invest in future growth, impacting long-term competitiveness.

Middlesex Water Company Business Overview & Revenue Model

Company Description

Middlesex Water Company owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The Regulated segment collects, treats, and distributes water on a retail and wholesale basis to residential, commercial, industrial, and fire protection customers, as well as provides regulated wastewater systems in New Jersey and Delaware. The Non-Regulated segment provides non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. The company was incorporated in 1896 and is headquartered in Iselin, New Jersey.

How the Company Makes Money

Middlesex Water Company generates revenue primarily through the sale of water and wastewater services. The company operates under a regulated utility model, which means it is allowed to charge rates approved by state regulatory agencies to recover its costs and earn a reasonable return on investment. Key revenue streams include customer water usage fees, wastewater service fees, and connection fees for new customers. Additionally, Middlesex Water may earn revenue from infrastructure investments and improvements, which can be recovered through rate increases sanctioned by regulatory bodies. The company also benefits from partnerships with local governments and municipalities for water supply and wastewater treatment services, contributing to its earnings stability.

Middlesex Water Company Financial Statement Overview

Summary

Middlesex Water Company demonstrates solid financial performance with consistent revenue growth and strong profit margins. The balance sheet is stable, though leverage is slightly elevated. Cash flow management has improved significantly, but sustainability needs monitoring.

Income Statement

Middlesex Water Company shows a solid performance in its income statement with consistent revenue growth and strong profit margins. The TTM data indicates a revenue growth rate of 9%, which is a positive trend. The gross profit margin is healthy at 48.45%, and the net profit margin is also strong at 22.15%. However, there is a slight decline in margins compared to the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.91 in the TTM period. The return on equity is decent at 9.65%, indicating effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall leverage is slightly higher than optimal, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis shows significant improvement in free cash flow, with a growth rate of 73.20% in the TTM period. The operating cash flow to net income ratio is 0.60, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio is high at 1.31, indicating potential volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.82M	191.88M	166.27M	162.43M	143.14M	141.59M
Gross Profit	95.25M	99.51M	83.16M	83.34M	69.47M	70.80M
EBITDA	92.69M	92.06M	72.72M	80.20M	63.31M	58.62M
Net Income	43.02M	44.35M	31.52M	42.43M	36.54M	38.42M
Balance Sheet
Total Assets	1.34B	1.26B	1.24B	1.07B	1.02B	976.47M
Cash, Cash Equivalents and Short-Term Investments	3.38M	4.23M	2.39M	3.83M	3.53M	4.49M
Total Debt	415.36M	385.96M	412.31M	366.95M	330.62M	287.54M
Total Liabilities	859.41M	808.28M	810.98M	672.04M	650.21M	628.18M
Stockholders Equity	482.55M	446.90M	425.07M	402.41M	369.81M	348.29M
Cash Flow
Free Cash Flow	21.48M	-15.89M	-37.40M	-29.97M	-46.35M	-52.26M
Operating Cash Flow	65.53M	58.73M	52.78M	61.36M	33.03M	53.35M
Investing Cash Flow	-101.39M	-74.62M	-90.18M	-88.21M	-79.38M	-105.62M
Financing Cash Flow	34.58M	17.73M	35.96M	27.15M	39.48M	16.17M

Middlesex Water Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSEX, the sentiment is Negative. The current price of 51.35 is below the 20-day moving average (MA) of 51.39, below the 50-day MA of 54.40, and below the 200-day MA of 55.90, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSEX.

Middlesex Water Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWR	73 Outperform	$2.80B	21.62	13.73%	2.68%	10.28%	13.56%
WTRG	72 Outperform	$10.99B	16.11	10.29%	3.53%	21.35%	20.96%
YORW	69 Neutral	$469.13M	23.30	8.58%	2.70%	3.63%	-5.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	66 Neutral	$2.67B	19.56	8.19%	2.80%	-2.60%	-33.78%
AWK	65 Neutral	$25.51B	22.93	10.46%	2.52%	12.29%	13.13%
MSEX	55 Neutral	$941.65M	21.47	9.27%	2.70%	6.24%	3.35%