Middlesex Water Company Fundamental Analysis
Middlesex Water Company (MSEX) shows moderate financial fundamentals with a PE ratio of 23.37, profit margin of 22.07%, and ROE of 9.07%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MSEX's fundamental strength across five key dimensions:
Efficiency Score
WeakMSEX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMSEX trades at attractive valuation levels.
Growth Score
ModerateMSEX shows steady but slowing expansion.
Financial Health Score
ModerateMSEX shows balanced financial health with some risks.
Profitability Score
ModerateMSEX maintains healthy but balanced margins.
Key Financial Metrics
Is MSEX Expensive or Cheap?
P/E Ratio
MSEX trades at 23.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MSEX's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Middlesex Water Company at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.50 times EBITDA. This is generally considered low.
How Well Does MSEX Make Money?
Net Profit Margin
For every $100 in sales, Middlesex Water Company keeps $22.07 as profit after all expenses.
Operating Margin
Core operations generate 28.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.07 in profit for every $100 of shareholder equity.
ROA
Middlesex Water Company generates $3.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Middlesex Water Company generates strong operating cash flow of $61.27M, reflecting robust business health.
Free Cash Flow
Middlesex Water Company produces free cash flow of $15.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
MSEX converts 1.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MSEX Stacks Against Its Sector Peers
| Metric | MSEX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.37 | 19.45 | Worse (Expensive) |
| ROE | 9.07% | 965.00% | Weak |
| Net Margin | 22.07% | 898.00% | Weak |
| Debt/Equity | 0.85 | 1.64 | Strong (Low Leverage) |
| Current Ratio | 0.39 | 1.65 | Weak Liquidity |
| ROA | 3.17% | 2386.00% | Weak |
MSEX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Middlesex Water Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income