Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $966.59M
• Dividend Yield: 2.25%
• Average Volume (3M): 151.61K
• Price to Earnings (P/E): 22.1
• Beta (1Y): -0.09
• 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: 225,298
• 30 Day Avg. Volume: 151,610
• 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: 1.44
• Enterprise Value/Revenue: 7.16
• Enterprise Value/Gross Profit: 14.65
• Enterprise Value/Ebitda: 15.06
• 1Y Price Target: $58.00
• Price Target Upside: 10.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.43
• Revenue Forecast (FY): $195.81M

• Rating: 62 Neutral
• Price Target: $58.00 ▲(10.16% Upside)

Middlesex Water Company has a solid financial foundation with strong revenue growth and profitability, though leverage and cash flow sustainability require monitoring. Technical indicators suggest a cautious outlook, and the valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial health.

Profit Margins

Strong profit margins reflect efficient cost management and pricing power, contributing to sustainable profitability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, enabling strategic investments and debt management for future growth.

Negative Factors

Leverage Concerns

Higher leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities.

Margin Decline

Declining margins could indicate rising costs or competitive pressures, which may affect long-term profitability if not addressed.

Cash Flow Volatility

Volatile cash flow can challenge financial planning and stability, potentially impacting investment and operational decisions.

Middlesex Water Company Business Overview & Revenue Model

Company Description

Middlesex Water Company (MSEX) is a publicly traded utility company that primarily focuses on providing water and wastewater services to residential, commercial, and industrial customers in New Jersey and Delaware. Founded in 1897, the company operates through various subsidiaries and is involved in the acquisition, treatment, and distribution of water, as well as the management of wastewater treatment facilities. Middlesex Water is committed to delivering reliable and high-quality water services while adhering to environmental regulations and promoting conservation efforts.

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 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: 52.65
• 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 52.65 is below the 20-day moving average (MA) of 56.81, below the 50-day MA of 55.14, and below the 200-day MA of 55.81, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 59.07 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	$2.90B	22.23	13.73%	2.66%	10.28%	13.56%
WTRG	72 Outperform	$11.06B	16.21	10.29%	3.39%	21.35%	20.96%
YORW	69 Neutral	$461.33M	22.96	8.58%	2.74%	3.63%	-5.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	66 Neutral	$2.73B	20.00	8.19%	2.67%	-2.60%	-33.78%
AWK	65 Neutral	$25.16B	22.61	10.46%	2.50%	12.29%	13.13%
MSEX	62 Neutral	$966.59M	22.12	9.27%	2.25%	6.24%	3.35%