Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $946.41M
• Dividend Yield: 2.67%
• Average Volume (3M): 141.45K
• Price to Earnings (P/E): 21.7
• Beta (1Y): -0.07
• 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: 149,958
• 30 Day Avg. Volume: 141,448
• 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: 1.47
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 5.78
• 1Y Price Target: $58.00
• Price Target Upside: 12.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): $195.48M

• Rating: 55 Neutral
• Price Target: $54.00 ▲(4.63% 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

Regulated Utility Model

The regulated utility model ensures stable revenue through approved rates, providing predictable cash flows and reducing market volatility exposure.

Board Oversight

Enhanced board oversight with experienced directors can improve governance and strategic decision-making, supporting long-term operational stability.

Solid Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and a cushion against economic fluctuations, supporting long-term resilience.

Negative Factors

Declining Cash Flow

Significant decline in cash flow can strain liquidity, limiting the ability to invest in infrastructure and growth, impacting long-term sustainability.

Negative Revenue Growth

Negative revenue growth reflects challenges in expanding market share or customer base, potentially affecting long-term profitability and market position.

Decreased Margins

Decreasing margins suggest reduced efficiency in managing costs, which can pressure profitability and limit reinvestment capacity over time.

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 shows stable profitability and a solid balance sheet with moderate leverage and reasonable ROE. However, it faces challenges with declining revenue and significant drop in free cash flow growth, indicating potential liquidity issues.

Income Statement

Middlesex Water Company shows a mixed performance in its income statement. The gross profit margin for TTM is 45.45%, which is a decrease from the previous year, indicating reduced efficiency in managing production costs. The net profit margin is 22.08%, slightly lower than the previous year, reflecting stable profitability despite revenue decline. The revenue growth rate is negative at -0.52%, indicating a contraction in sales. EBIT and EBITDA margins have also decreased, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.84, indicating moderate leverage. The return on equity (ROE) is 9.36%, showing a slight decrease but still a reasonable return for shareholders. The equity ratio is 35.96%, suggesting a solid equity base relative to total assets, which provides a cushion against liabilities.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -71.94%, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.55, showing that operating cash flow covers net income but with limited margin. The free cash flow to net income ratio is 0.33, reflecting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	497.83M	191.88M	166.27M	162.43M	143.14M	141.59M
Gross Profit	237.33M	99.51M	83.16M	83.34M	69.47M	70.80M
EBITDA	241.62M	92.06M	72.72M	80.20M	63.31M	58.62M
Net Income	113.95M	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	29.23M	-15.89M	-37.40M	-29.97M	-46.35M	-52.26M
Operating Cash Flow	155.15M	58.73M	52.78M	61.36M	33.03M	53.35M
Investing Cash Flow	-244.80M	-74.62M	-90.18M	-88.21M	-79.38M	-105.62M
Financing Cash Flow	88.72M	17.73M	35.96M	27.15M	39.48M	16.17M

Middlesex Water Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.61
• 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 51.61 is below the 20-day moving average (MA) of 51.84, below the 50-day MA of 53.85, and below the 200-day MA of 55.71, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 30.64 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
AWK	73 Outperform	$25.51B	22.93	10.46%	2.51%	12.29%	13.13%
AWR	70 Outperform	$2.84B	21.74	13.73%	2.64%	10.28%	13.56%
YORW	69 Neutral	$471.58M	23.47	8.58%	2.68%	3.63%	-5.82%
WTRG	66 Neutral	$10.87B	15.94	10.29%	3.48%	21.35%	20.96%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	65 Neutral	$2.57B	18.82	8.19%	2.88%	-2.60%	-33.78%
MSEX	55 Neutral	$946.41M	21.66	9.27%	2.67%	6.24%	3.35%