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Middlesex Water Company (MSEX)
NASDAQ:MSEX
US Market
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Middlesex Water Company (MSEX) AI Stock Analysis

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MSEX

Middlesex Water Company

(NASDAQ:MSEX)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
$60.00
â–²(3.70% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial performance (steady revenue growth and durable margins with manageable leverage), offset by weaker cash-flow conversion and historically inconsistent free cash flow. Technically, the stock maintains an uptrend versus key longer-term moving averages but shows mild near-term softness. Valuation is reasonable but not cheap (P/E ~23.9) with a supportive ~2.54% dividend yield.
Positive Factors
Regulated business model
As a regulated water and wastewater utility, Middlesex collects tariffed revenues designed to recover prudently incurred costs plus an allowed return on invested capital. This framework creates predictable, durable cash flows and long-term earnings visibility tied to rate base growth.
Negative Factors
Weak cash-flow conversion
Operating cash flow covering ~51% of net income and historically volatile free cash flow (often negative) indicate timing and working-capital pressures plus heavy capex. This inconsistent cash conversion constrains internal funding for dividends, reinvestment, and reduces flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated business model
As a regulated water and wastewater utility, Middlesex collects tariffed revenues designed to recover prudently incurred costs plus an allowed return on invested capital. This framework creates predictable, durable cash flows and long-term earnings visibility tied to rate base growth.
Read all positive factors

Middlesex Water Company (MSEX) vs. SPDR S&P 500 ETF (SPY)

Middlesex Water Company Business Overview & Revenue Model

Company Description
Middlesex Water Company primarily delivers vital water and wastewater utility services, structured around two key business units. Its regulated operations are dedicated to the acquisition, treatment, and distribution of water to a broad spectrum o...
How the Company Makes Money
Middlesex Water Company makes money primarily through regulated utility revenues and, to a lesser extent, through contract and other non-regulated water-related services. (1) Regulated water and wastewater utility revenue: The core earnings come f...

Middlesex Water Company Financial Statement Overview

Summary
Strong and steady revenue growth with solid regulated-utility profitability (TTM net margin ~22%, EBIT margin ~32%). Balance sheet leverage is moderate and stable (debt-to-equity ~0.85) with steady ROE (~9.6%). The main drag is cash-flow quality: operating cash flow covers only ~51% of net income and free cash flow has been historically volatile/negative despite a modestly positive TTM.
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue206.14M194.69M191.88M166.27M162.43M143.14M
Gross Profit89.97M76.29M99.51M83.16M83.34M69.47M
EBITDA98.26M94.43M92.06M72.72M80.20M63.31M
Net Income47.94M42.82M44.35M31.52M42.43M36.54M
Balance Sheet
Total Assets1.42B1.37B1.26B1.24B1.07B1.02B
Cash, Cash Equivalents and Short-Term Investments1.80M2.80M4.23M2.39M3.83M3.53M
Total Debt438.75M416.81M385.96M412.31M366.95M330.62M
Total Liabilities901.05M870.36M808.28M810.98M672.04M650.21M
Stockholders Equity522.43M495.37M446.90M425.07M402.41M369.81M
Cash Flow
Free Cash Flow15.02M-33.76M-15.89M-37.40M-29.97M-46.35M
Operating Cash Flow58.64M62.60M58.73M52.78M61.36M33.03M
Investing Cash Flow-99.34M-100.96M-74.62M-90.18M-88.21M-79.38M
Financing Cash Flow39.94M38.61M17.73M35.96M27.15M39.48M

Middlesex Water Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price57.86
Price Trends
50DMA
57.03
Positive
100DMA
54.45
Positive
200DMA
52.95
Positive
Market Momentum
MACD
0.39
Positive
RSI
54.12
Neutral
STOCH
57.56
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 57.86 is below the 20-day moving average (MA) of 58.37, above the 50-day MA of 57.03, and above the 200-day MA of 52.95, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSEX.

Middlesex Water Company Risk Analysis

Middlesex Water Company disclosed 21 risk factors in its most recent earnings report. Middlesex Water Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Middlesex Water Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$27.96B24.2910.15%2.45%6.92%4.00%
66
Neutral
$11.83B21.408.05%3.31%9.86%-16.27%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
$1.10B22.359.57%2.47%5.26%7.26%
65
Neutral
$3.09B22.397.62%2.62%6.43%-2.99%
60
Neutral
$3.51B24.2313.50%2.32%13.23%12.00%
59
Neutral
$552.58M21.229.38%2.64%9.43%16.86%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSEX
Middlesex Water Company
58.33
6.62
12.81%
AWR
American States Water
88.68
17.01
23.73%
AWK
American Water
140.38
4.01
2.94%
WTRG
Essential Utilities
41.94
5.02
13.60%
CWT
California Water Service
49.87
4.88
10.84%
YORW
The York Water Company
34.17
4.36
14.62%

Middlesex Water Company Corporate Events

Executive/Board ChangesShareholder Meetings
Middlesex Water Shareholders Approve Directors and Key Proposals
Positive
May 20, 2026
Middlesex Water Company held its 2026 Annual Meeting of Shareholders virtually on May 19, 2026, for investors of record as of March 24, 2026. Shareholders elected one Class II director, Robert Hoglund, and three Class III directors, Joshua Bershad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026