Artesian Resources Corp

ARTNA

Water Supply

Mkt Cap

$355.1M

PE

20.40

Debt

$180.5M

Cash

$9.503M

EV

$526.2M

FCF

-$20.37M

Market Cap

$355.1M

P/E Ratio

20.40

Debt

$180.5M

Cash

$9.503M

EV

$526.2M

FCF

-$20.37M

Charts data: {"Earnings":[{"time":"2014-12-30","value":9506000},{"time":"2015-12-30","value":11305000},{"time":"2016-12-30","value":12954000},{"time":"2017-12-30","value":13983000},{"time":"2018-12-30","value":14278000},{"time":"2019-12-30","value":14925000},{"time":"2020-12-30","value":16817000},{"time":"2021-12-30","value":16827000},{"time":"2022-12-30","value":17998000},{"time":"2023-12-30","value":16699000}],"Sales":[{"time":"2014-12-30","value":72465000},{"time":"2015-12-30","value":77024000},{"time":"2016-12-30","value":79089000},{"time":"2017-12-30","value":82235000},{"time":"2018-12-30","value":80411000},{"time":"2019-12-30","value":83595000},{"time":"2020-12-30","value":88141000},{"time":"2021-12-30","value":90859000},{"time":"2022-12-30","value":98897000},{"time":"2023-12-30","value":98861000}],"Net Margins":[{"time":"2014-12-30","value":0.13118056993031119},{"time":"2015-12-30","value":0.1467724345658496},{"time":"2016-12-30","value":0.16379016045214884},{"time":"2017-12-30","value":0.1700370888307898},{"time":"2018-12-30","value":0.1775627712626382},{"time":"2019-12-30","value":0.17853938632693342},{"time":"2020-12-30","value":0.19079656459536426},{"time":"2021-12-30","value":0.18519904467361517},{"time":"2022-12-30","value":0.18198732014115696},{"time":"2023-12-30","value":0.16891392965881388}],"Assets":[{"time":"2014-12-30","value":422213000},{"time":"2015-12-30","value":431626000},{"time":"2016-12-30","value":450976000},{"time":"2017-12-30","value":494639000},{"time":"2018-12-30","value":529830000},{"time":"2019-12-30","value":560368000},{"time":"2020-12-30","value":593218000},{"time":"2021-12-30","value":625211000},{"time":"2022-12-30","value":719791000},{"time":"2023-12-30","value":766832000}],"Stockholders Equity":[{"time":"2014-12-30","value":125605000},{"time":"2015-12-30","value":132331000},{"time":"2016-12-30","value":139023000},{"time":"2017-12-30","value":146644000},{"time":"2018-12-30","value":153251000},{"time":"2019-12-30","value":160268000},{"time":"2020-12-30","value":169426000},{"time":"2021-12-30","value":178010000},{"time":"2022-12-30","value":187931000},{"time":"2023-12-30","value":230397000}],"ROE":[{"time":"2014-12-30","value":0.07568170056924485},{"time":"2015-12-30","value":0.08542971790434592},{"time":"2016-12-30","value":0.09317882652510735},{"time":"2017-12-30","value":0.09535337279397725},{"time":"2018-12-30","value":0.0931674181571409},{"time":"2019-12-30","value":0.09312526518082212},{"time":"2020-12-30","value":0.09925867340313765},{"time":"2021-12-30","value":0.09452839728105163},{"time":"2022-12-30","value":0.0957691918842554},{"time":"2023-12-30","value":0.07247924235124589}],"ROA":[{"time":"2014-12-30","value":0.057534940894761646},{"time":"2015-12-30","value":0.058617877514329536},{"time":"2016-12-30","value":0.05818934932235862},{"time":"2017-12-30","value":0.05324489172911962},{"time":"2018-12-30","value":0.05054828907385388},{"time":"2019-12-30","value":0.05170352339890929},{"time":"2020-12-30","value":0.05403578448395025},{"time":"2021-12-30","value":0.035658361737077565},{"time":"2022-12-30","value":0.033212418604845015},{"time":"2023-12-30","value":0.029271078932543243}]}

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, 2022, it served approximately 94,600 customers in Delaware; 2,600 customers in Maryland; and 40 customers in Pennsylvania through 1,442 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
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10-Q
3/31/22
10-K
12/31/21
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9/30/21
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10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
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3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 5.4%

Earnings Stability 85%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	15%	16%	17%	18%	18%	19%	19%	18%	17%	17%
ROA	5.9%	5.8%	5.3%	5.1%	5.2%	5.4%	3.6%	3.3%	2.9%	3%
ROE	8.5%	9.3%	9.5%	9.3%	9.3%	9.9%	9.5%	9.6%	7.2%	7.5%

What is the average Net Margin?

The average Net Margin over the past 5 years is +18.05%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.11%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.24%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.51%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +9.14%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.29%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	13.77	68.69	-20.37	-5.99	-6.77	-10.48	-15.41	-7.42	-6.03	-8.86
Debt Equity	0.80	0.76	0.74	0.78	0.92	0.86	0.82	0.96	0.79	0.78
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	97%	97%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -8.86.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.20.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.97.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	3.2%	4.2%	3.9%	-0.036%	-0.016%
Net Income	3.7%	3.2%	-0.23%	-7.2%	-2.2%
Stockholders Equity	7.5%	8.5%	11%	23%	1.2%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.22%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.02%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +3.18%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.21%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +8.5%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.18%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.78%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.