Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $997.62M
• Dividend Yield: 2.44%
• Average Volume (3M): 107.19K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.13
• Revenue Growth: 16.02%
• EPS Growth: 18.29%
• Country: US
• Employees: 360
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Water
• EPS (TTM): 0.53
• Shares Outstanding: 17,920,177
• 10 Day Avg. Volume: 74,981
• 30 Day Avg. Volume: 107,194
• PEG Ratio: 2.12
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -46.19
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 14.88
• Enterprise Value/Ebitda: 5.18
• 1Y Price Target: $69.50
• Price Target Upside: 25.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ―

Middlesex Water Company exhibits strong financial performance with excellent profitability and cash flow generation, supported by moderate leverage and a stable equity position. The technical analysis suggests mixed signals, with short-term weakness but a stable long-term trajectory. The valuation is reasonable with a balanced P/E ratio and an attractive dividend yield. These factors combine to provide a robust overall stock score, reflecting solid stability and growth potential in the regulated water industry.

Positive Factors

Analyst Recommendations

Analyst's recommendation on MSEX shares has been upgraded to BUY from Neutral based on valuation.

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.

Valuation

Middlesex Water 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

Market Conditions

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

Valuation Concerns

The shares of Middlesex Water now trading above the Fair Value estimate has led to a downgrade in rating from Buy to Neutral based on valuation.

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 presents a financially healthy profile with strong profitability, stable growth, and effective cash flow management. The moderate leverage and good equity position support its financial stability, while its consistent revenue and profit growth reflect a positive trajectory. These factors combine to create a solid financial foundation for future opportunities.

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
	EBIT
54.90M	53.21M	39.22M	47.33M	33.21M	37.42M
	EBITDA
83.67M	93.32M	72.72M	74.12M	62.04M	58.54M
	Net Income Common Stockholders
43.15M	44.35M	31.52M	42.43M	36.54M	38.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.66M	4.23M	2.39M	3.83M	3.53M	4.49M
	Total Assets
1.28B	1.26B	1.24B	1.07B	1.02B	976.47M
	Total Debt
385.26M	385.96M	412.31M	366.95M	330.62M	287.54M
	Net Debt
382.60M	381.74M	409.92M	363.12M	327.08M	283.05M
	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: 55.59
• 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 55.59 is below the 20-day moving average (MA) of 57.20, below the 50-day MA of 59.30, and below the 200-day MA of 58.98, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 40.96 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	75 Outperform	$10.48B	16.77	9.78%	3.48%	16.41%	5.65%
MSEX	72 Outperform	$997.62M	23.22	9.80%	2.44%	16.02%	18.29%
HTO	72 Outperform	$1.78B	17.51	7.49%	3.22%	12.34%	11.78%
AWR	65 Neutral	$2.97B	23.81	13.95%	2.38%	6.79%	5.96%
Sector *	64 Neutral	$8.56B	10.32	4.24%	4.82%	4.06%	-12.76%
CWT	63 Neutral	$2.74B	20.21	8.67%	2.59%	3.83%	-8.75%
YORW	58 Neutral	$461.10M	23.41	8.63%	2.74%	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.