Artesian Resources (ARTNA) AI Stock Analysis

• Market Cap: $346.95M
• Dividend Yield: 3.63%
• Average Volume (3M): 29.96K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.29
• Revenue Growth: 7.13%
• EPS Growth: 22.19%
• Country: US
• Employees: 245
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.61
• Shares Outstanding: 9,429,149
• 10 Day Avg. Volume: 18,834
• 30 Day Avg. Volume: 29,957
• PEG Ratio: 0.86
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.02
• P/FCF Ratio: -35.69
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 10.12
• Enterprise Value/Ebitda: 10.04
• 1Y Price Target: $37.00
• Price Target Upside: 10.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $37.00 ▲(10.45% Upside)

Artesian Resources receives a strong overall score driven by solid financial performance and positive technical indicators. The company's stable financial position and reasonable valuation further support the stock's attractiveness. However, challenges in cash management and the absence of earnings call insights limit the score's upside potential.

Artesian Resources Business Overview & Revenue Model

Company Description

Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services in Delaware, Maryland, and Pennsylvania. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater collection, treatment infrastructure, and wastewater services to customers in Delaware. It also provides contract water and wastewater services; water, sewer, and internal service line protection plans; and wastewater management services, as well as design, construction, and engineering services. In addition, the company offers services to other water utilities, including operations and billing functions; owns real estate properties, including land for office buildings, a water treatment plant, and wastewater facility; and provides design, installation, maintenance, and repair services related to existing or proposed storm water management systems. As of December 31, 2021, it served approximately 91,700 customers in Delaware, 2,500 customers in Maryland, and 40 customers in Pennsylvania through 1,368 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.

How the Company Makes Money

Artesian Resources generates revenue primarily through the sale of water and wastewater treatment services to its customers. The company charges customers based on consumption, with rates set by state regulatory bodies. Key revenue streams include residential and commercial water sales, as well as wastewater services. Additionally, Artesian often engages in infrastructure projects and capital investments that may be funded through bonds or partnerships with governmental agencies, further enhancing its revenue potential. The company's regulatory environment allows for the recovery of infrastructure costs through rate adjustments, which also contributes to its earnings.

Artesian Resources Financial Statement Overview

Summary

Artesian Resources demonstrates solid financial health with strong revenue growth, profitability, and balanced leverage. The company's ability to generate operating cash flow is commendable. However, continuous negative free cash flow due to high capital expenditures is a concern. The company should focus on improving free cash flow generation to sustain growth and maintain financial stability.

Income Statement

Artesian Resources shows a strong income statement with consistent revenue growth and solid profitability. Revenue increased by 1.24% in the TTM period compared to the previous year. The company maintains a healthy gross profit margin of 49.76% and a net profit margin of 19.60% in TTM, indicating efficient cost management. However, the EBIT and EBITDA margins, at 24.68% and 46.86% respectively, show room for improvement compared to peers in the industry.

Balance Sheet

The balance sheet of Artesian Resources reflects a stable financial structure with some areas of concern. The debt-to-equity ratio stands at 0.74, which is reasonable for the industry but suggests moderate leverage. The equity ratio is at 29.88%, indicating a balanced approach to financing between debt and equity. Return on equity is robust at 8.86%, showcasing effective use of shareholder funds. However, the high debt level remains a potential risk factor.

Cash Flow

The cash flow statement reveals challenges in generating free cash flow, with negative free cash flow observed consistently. Despite a strong operating cash flow to net income ratio of 1.64, indicating good cash conversion, the free cash flow to net income ratio is negative due to high capital expenditures. This reflects significant investments in growth but also highlights the need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.43M	107.95M	98.86M	98.90M	90.86M	88.14M
Gross Profit	51.91M	53.41M	48.23M	48.27M	45.50M	44.53M
EBITDA	52.35M	50.12M	42.13M	42.40M	39.92M	39.12M
Net Income	22.38M	20.39M	16.70M	18.00M	16.83M	16.82M
Balance Sheet
Total Assets	819.30M	798.62M	766.83M	719.79M	625.21M	593.22M
Cash, Cash Equivalents and Short-Term Investments	349.00K	1.15M	2.50M	1.31M	92.00K	28.00K
Total Debt	175.14M	179.11M	181.06M	198.26M	171.99M	171.34M
Total Liabilities	574.39M	559.43M	536.43M	531.86M	447.20M	423.79M
Stockholders Equity	244.91M	239.19M	230.40M	187.93M	178.01M	169.43M
Cash Flow
Free Cash Flow	-17.57M	-9.12M	-30.33M	-24.22M	-9.50M	-13.92M
Operating Cash Flow	36.26M	36.82M	31.85M	24.27M	31.31M	20.36M
Investing Cash Flow	-53.73M	-45.32M	-62.08M	-54.76M	-40.72M	-39.97M
Financing Cash Flow	11.57M	7.14M	31.42M	31.71M	9.48M	19.05M

Artesian Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARTNA, the sentiment is Positive. The current price of 33.5 is above the 20-day moving average (MA) of 32.58, above the 50-day MA of 32.85, and above the 200-day MA of 32.38, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARTNA.

Artesian Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	75 Outperform	$265.06M	19.44	10.47%	―	40.29%	124.50%
ARTNA	73 Outperform	$346.95M	15.42	9.34%	3.63%	7.13%	22.19%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GWRS	66 Neutral	$298.09M	49.01	8.96%	2.80%	4.33%	-13.38%
MSEX	65 Neutral	$1.05B	24.26	9.70%	2.33%	11.91%	16.88%
YORW	64 Neutral	$449.80M	22.76	8.56%	2.81%	4.09%	-14.30%
CDZI	55 Neutral	$452.74M	―	-103.71%	―	460.46%	1.67%

Artesian Resources Corporate Events

Artesian Resources Appoints Salvatore Rossi to Board

On July 1, 2025, Artesian Resources Corporation appointed Salvatore J. ‘Chip’ Rossi to its Board of Directors for the remainder of a three-year term ending in 2027. Rossi brings extensive financial expertise and risk management experience from his previous roles at Bank of America, where he served in various leadership positions. His understanding of the Delaware community and his qualifications make him a valuable addition to the board, where he will serve on several committees.