Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $929.66M
• Dividend Yield: 2.57%
• Average Volume (3M): 159.92K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.06
• Revenue Growth: 11.91%
• EPS Growth: 16.88%
• Country: US
• Employees: 360
• Sector: Utilities
• Sector Strength: 86
• Industry: Regulated Water
• EPS (TTM): 0.60
• Shares Outstanding: 18,016,640
• 10 Day Avg. Volume: 239,288
• 30 Day Avg. Volume: 159,922
• PEG Ratio: -0.03
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.89
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 11.47
• Enterprise Value/Ebitda: 4.00
• 1Y Price Target: $59.50
• Price Target Upside: 13.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $57.00 ▲(8.80%Upside)

Middlesex Water Company's strong financial performance is the primary strength, underscoring its robust profitability and effective cash management. However, technical analysis indicates bearish momentum, which dampens the outlook. The valuation is reasonable but not compelling, contributing to a moderate overall stock score.

Positive Factors

Growth strategy

There is a bullish outlook on the company's growth strategy, driven by a strong capital expenditure profile for the next 3 years.

Regulatory developments

The settlement of the Tidewater rate case in Delaware is viewed constructively, allowing for a notable revenue increase.

Valuation

The company is trading near its lowest NTM P/E level in the last decade, representing a ~30% discount to its five-year average, making its valuation particularly attractive.

Negative Factors

Financial performance

Analyst reiterates an Underperform rating for Middlesex Water, reflecting ongoing concerns about the company's financial performance.

Market conditions

Despite a belief that a 25 P/E multiple is appropriate, current market conditions and volatility could affect the share price.

Revenue pressures

The request for a significant revenue increase in New Jersey indicates possible financial pressure, as Middlesex seeks to boost its base rates by 19.3%.

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. Its key revenue streams include residential, commercial, and industrial water supply, as well as wastewater treatment services. Rates for these services are regulated by state public utility commissions, which ensures a stable income source. The company also earns income from contract operations and maintenance services provided to private and municipal clients. Additionally, Middlesex Water Company benefits from infrastructure investments that improve service reliability and efficiency, which can lead to favorable rate adjustments and incremental revenue growth.

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: Negative
• Last Price: 52.39
• 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 MSEX, the sentiment is Negative. The current price of 52.39 is below the 20-day moving average (MA) of 53.68, below the 50-day MA of 55.35, and below the 200-day MA of 57.63, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 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
WTRG	73 Outperform	$10.32B	16.51	10.02%	3.41%	20.70%	14.59%
HTO	71 Outperform	$1.75B	16.21	7.50%	3.31%	12.40%	11.98%
CWT	67 Neutral	$2.71B	19.86	8.49%	2.67%	0.62%	-24.24%
MSEX	65 Neutral	$929.66M	21.52	9.70%	2.57%	11.91%	16.88%
Sector *	63 Neutral	C$7.38B	6.10	-18.97%	4.59%	1.70%	-87.29%
AWR	62 Neutral	$2.83B	22.69	13.95%	2.49%	6.79%	5.96%
YORW	58 Neutral	$438.49M	22.27	8.63%	2.85%	3.45%	-19.90%

Middlesex Water Company Corporate Events

Middlesex Water Holds Annual Shareholder Meeting

On May 20, 2025, Middlesex Water Company held its Annual Meeting of Shareholders via virtual webcast. During the meeting, shareholders voted to elect directors Steven M. Klein, Amy B. Mansue, and Walter G. Reinhard, approved executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent accounting firm for 2025. These decisions reflect the company’s ongoing commitment to governance and financial oversight, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (MSEX) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Middlesex Water Company stock, see the MSEX Stock Forecast page.

Middlesex Water Launches $110 Million ATM Offering

On May 12, 2025, Middlesex Water Company entered into an ATM Equity Offering Sales Agreement with several sales agents to sell up to $110 million in common stock through at-the-market offerings. The proceeds from these sales are intended to fund capital expenditures, plant equipment purchases, and other corporate purposes, potentially impacting the company’s operational capabilities and financial positioning.

The most recent analyst rating on (MSEX) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Middlesex Water Company stock, see the MSEX Stock Forecast page.