Middlesex Water Company (MSEX) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 2.33%
• Average Volume (3M): 136.34K
• Price to Earnings (P/E): 24.3
• Beta (1Y): -0.03
• Revenue Growth: 11.91%
• EPS Growth: 16.88%
• Country: US
• Employees: 360
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.60
• Shares Outstanding: 18,016,640
• 10 Day Avg. Volume: 110,226
• 30 Day Avg. Volume: 136,339
• 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: 1.32
• Enterprise Value/Revenue: 7.10
• Enterprise Value/Gross Profit: 14.65
• Enterprise Value/Ebitda: 16.95
• 1Y Price Target: $58.00
• Price Target Upside: -0.50% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $63.00 ▲(8.08% Upside)

Middlesex Water Company has a solid financial foundation with strong revenue growth and profitability. However, technical indicators suggest potential overbought conditions, and the valuation appears high relative to industry norms. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The consistent revenue growth of nearly 20% indicates strong market demand and effective business expansion, supporting long-term financial health.

Cash Flow Management

Exceptional cash flow growth demonstrates efficient operations and strong cash generation, providing flexibility for future investments and debt management.

Profitability

High profit margins reflect strong pricing power and cost management, ensuring sustainable profitability and competitive advantage in the regulated water industry.

Negative Factors

Debt Levels

Moderate leverage suggests potential risk in rising interest rate environments, which could impact financial flexibility and increase financial costs.

Regulatory Dependence

Dependence on regulatory rate approvals can limit pricing flexibility and impact revenue growth, posing a challenge in adapting to market changes.

Industry Competition

Operating in a regulated industry can limit competitive differentiation and growth opportunities, as market expansion is often constrained by regulatory approvals.

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 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 strong financial performance with robust profitability, stable growth, and effective cash flow management. The company maintains a healthy balance sheet with moderate leverage and a strong 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	195.83M	191.88M	166.27M	162.43M	143.14M	141.59M
Gross Profit	94.88M	99.51M	83.16M	83.34M	69.47M	70.80M
EBITDA	82.02M	93.32M	72.72M	74.12M	62.04M	58.54M
Net Income	43.38M	44.35M	31.52M	42.43M	36.54M	38.42M
Balance Sheet
Total Assets	1.32B	1.26B	1.24B	1.07B	1.02B	976.47M
Cash, Cash Equivalents and Short-Term Investments	2.56M	4.23M	2.39M	3.83M	3.53M	4.49M
Total Debt	416.63M	385.96M	412.31M	366.95M	330.62M	287.54M
Total Liabilities	856.75M	808.28M	810.98M	672.04M	650.21M	628.18M
Stockholders Equity	459.13M	446.90M	425.07M	402.41M	369.81M	348.29M
Cash Flow
Free Cash Flow	95.44M	-15.89M	-37.40M	-29.97M	-46.35M	-52.26M
Operating Cash Flow	72.94M	58.73M	52.78M	61.36M	33.03M	53.35M
Investing Cash Flow	-101.13M	-74.62M	-90.18M	-88.21M	-79.38M	-105.62M
Financing Cash Flow	24.40M	17.73M	35.96M	27.15M	39.48M	16.17M

Middlesex Water Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 58.29 is above the 20-day moving average (MA) of 54.98, above the 50-day MA of 53.91, and above the 200-day MA of 55.17, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 87.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$11.59B	17.68	10.02%	3.19%	20.70%	14.59%
AWR	71 Outperform	$2.90B	23.07	13.77%	2.52%	8.55%	13.57%
AWK	71 Outperform	$28.95B	25.78	10.40%	2.21%	13.37%	13.29%
CWT	70 Neutral	$2.88B	21.13	8.49%	2.51%	0.62%	-24.24%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
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%