Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $961.19M
• Dividend Yield: 2.51%
• Average Volume (3M): 144.06K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.02
• Revenue Growth: 11.91%
• EPS Growth: 16.88%
• Country: US
• Employees: 360
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.60
• Shares Outstanding: 18,016,640
• 10 Day Avg. Volume: 154,276
• 30 Day Avg. Volume: 144,055
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 7.11
• Enterprise Value/Gross Profit: 11.84
• Enterprise Value/Ebitda: 16.62
• 1Y Price Target: $56.00
• Price Target Upside: 6.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $59.00 ▲(11.78% Upside)

Middlesex Water Company scores well due to its strong financial performance, characterized by robust profitability and effective cash flow management. The technical analysis indicates a neutral stance, while the valuation suggests a fair market price. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market penetration, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management ensures liquidity and supports reinvestment in infrastructure, enhancing service reliability and future growth.

Profitability

High profitability margins reflect efficient operations and pricing power, contributing to financial resilience and shareholder value.

Negative Factors

Leverage

Moderate leverage could limit flexibility in capital allocation and increase risk during economic downturns, impacting long-term stability.

Equity Ratio

While a strong equity base supports stability, reliance on equity financing may dilute shareholder value if not managed carefully.

Regulatory Environment

Regulatory constraints on pricing can limit revenue growth potential and require careful navigation to maintain profitability and service quality.

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 to its customers. The company charges rates that are regulated by state utility commissions, which allow for a reasonable return on investment while ensuring service affordability. Key revenue streams include residential water service fees, commercial and industrial water service contracts, and wastewater treatment charges. Additionally, the company may engage in infrastructure development projects, providing opportunities for investment returns. Strategic partnerships with local governments and municipalities for water supply and wastewater management also contribute to its revenue base, as well as compliance with environmental standards that can lead to incentives or grants. Overall, Middlesex Water's financial performance is influenced by customer growth, rate adjustments, and operational efficiency.

Middlesex Water Company Financial Statement Overview

Summary

Middlesex Water Company exhibits strong financial health with robust profitability metrics, consistent revenue growth, and effective cash flow management. The company maintains stable margins and a solid equity base, supporting its financial stability.

Income Statement

Middlesex Water Company shows strong profitability with a TTM gross profit margin of 60.0% and net profit margin of 22.1%. Revenue growth is consistent, with a 19.9% increase from 2023 to TTM. EBIT and EBITDA margins also reflect healthy operational efficiency at 28.1% and 42.8%, respectively. Continued revenue growth and strong margins indicate solid financial health.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.86, indicating moderate leverage. The return on equity stands at 9.6%, showcasing effective utilization of shareholder funds. The equity ratio is 35.1%, reflecting a strong equity base relative to total assets, which supports financial stability.

Cash Flow

Middlesex Water Company demonstrates strong cash flow management with a free cash flow growth rate of 446.7% from 2024 to TTM. Operating cash flow to net income ratio is robust at 1.53, highlighting efficient cash generation relative to earnings. The free cash flow to net income ratio is 1.28, indicating effective cash retention after capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.65M	191.88M	166.27M	162.43M	143.14M	141.59M
Gross Profit	117.45M	99.51M	83.16M	83.34M	69.47M	70.80M
EBITDA	83.67M	93.32M	72.72M	74.12M	62.04M	58.54M
Net Income	43.15M	44.35M	31.52M	42.43M	36.54M	38.42M
Balance Sheet
Total Assets	1.28B	1.26B	1.24B	1.07B	1.02B	976.47M
Cash, Cash Equivalents and Short-Term Investments	2.66M	4.23M	2.39M	3.83M	3.53M	4.49M
Total Debt	385.26M	385.96M	412.31M	366.95M	330.62M	287.54M
Total Liabilities	829.91M	808.28M	810.98M	672.04M	650.21M	628.18M
Stockholders Equity	449.05M	446.90M	425.07M	402.41M	369.81M	348.29M
Cash Flow
Free Cash Flow	55.11M	-15.89M	-37.40M	-29.97M	-46.35M	-52.26M
Operating Cash Flow	65.86M	58.73M	52.78M	61.36M	33.03M	53.35M
Investing Cash Flow	-79.14M	-74.62M	-90.18M	-88.21M	-79.38M	-105.62M
Financing Cash Flow	13.09M	17.73M	35.96M	27.15M	39.48M	16.17M

Middlesex Water Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.78
• 50DMA: Positive
• 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 Positive. The current price of 52.78 is below the 20-day moving average (MA) of 53.31, below the 50-day MA of 52.99, and below the 200-day MA of 55.12, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSEX.

Middlesex Water Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSEX	73 Outperform	$961.19M	22.14	9.70%	2.51%	11.91%	16.88%
WTRG	73 Outperform	$10.89B	17.07	9.61%	3.40%	20.70%	14.59%
AWK	67 Neutral	$27.51B	25.06	10.14%	2.34%	13.37%	13.29%
CWT	66 Neutral	$2.65B	20.04	8.20%	2.74%	0.62%	-24.24%
AWR	66 Neutral	$2.73B	22.47	12.82%	2.68%	8.55%	13.57%
YORW	61 Neutral	$431.91M	22.20	8.40%	2.93%	4.09%	-14.30%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%