Middlesex Water Co

MSEX

Water Supply

Mkt Cap

$911M

PE

25.15

Debt

$720.6M

Cash

$2.855M

EV

$1.629B

FCF

-$36.59M

Market Cap

$911M

P/E Ratio

25.15

Debt

$720.6M

Cash

$2.855M

EV

$1.629B

FCF

-$36.59M

Charts data: {"Earnings":[{"time":"2014-12-30","value":18294000},{"time":"2015-12-30","value":19884000},{"time":"2016-12-30","value":22598000},{"time":"2017-12-30","value":22665000},{"time":"2018-12-30","value":32308000},{"time":"2019-12-30","value":33756000},{"time":"2020-12-30","value":38305000},{"time":"2021-12-30","value":36423000},{"time":"2022-12-30","value":42309000},{"time":"2023-12-30","value":31404000}],"Sales":[{"time":"2014-12-30","value":117139000},{"time":"2015-12-30","value":126025000},{"time":"2016-12-30","value":132906000},{"time":"2017-12-30","value":130775000},{"time":"2018-12-30","value":138077000},{"time":"2019-12-30","value":134598000},{"time":"2020-12-30","value":141592000},{"time":"2021-12-30","value":143141000},{"time":"2022-12-30","value":162434000},{"time":"2023-12-30","value":166274000}],"Net Margins":[{"time":"2014-12-30","value":0.15617343497895664},{"time":"2015-12-30","value":0.15777821860741917},{"time":"2016-12-30","value":0.17002994597685583},{"time":"2017-12-30","value":0.17331294207608489},{"time":"2018-12-30","value":0.23398538496635934},{"time":"2019-12-30","value":0.25079124504078815},{"time":"2020-12-30","value":0.2705308209503362},{"time":"2021-12-30","value":0.2544553971259108},{"time":"2022-12-30","value":0.2604688673553566},{"time":"2023-12-30","value":0.1888689753058205}],"Assets":[{"time":"2014-12-30","value":575772000},{"time":"2015-12-30","value":584722000},{"time":"2016-12-30","value":620161000},{"time":"2017-12-30","value":661140000},{"time":"2018-12-30","value":767830000},{"time":"2019-12-30","value":909878000},{"time":"2020-12-30","value":976470000},{"time":"2021-12-30","value":1020015000},{"time":"2022-12-30","value":1074450000},{"time":"2023-12-30","value":1236052000}],"Stockholders Equity":[{"time":"2020-12-30","value":346208000},{"time":"2021-12-30","value":367726000},{"time":"2022-12-30","value":400328000},{"time":"2023-12-30","value":422991000}],"ROE":[{"time":"2020-12-30","value":0.11064157962843146},{"time":"2021-12-30","value":0.09904929213599256},{"time":"2022-12-30","value":0.10568583761315721},{"time":"2023-12-30","value":0.07424271438399399}],"ROA":[{"time":"2014-12-30","value":0.059731977240991226},{"time":"2015-12-30","value":0.061294085052383866},{"time":"2016-12-30","value":0.06551847020370517},{"time":"2017-12-30","value":0.0584142541670448},{"time":"2018-12-30","value":0.048372686662412255},{"time":"2019-12-30","value":0.03903820072581159},{"time":"2020-12-30","value":0.03832170983235532},{"time":"2021-12-30","value":0.032559325107964096},{"time":"2022-12-30","value":0.044053236539624924},{"time":"2023-12-30","value":0.03173248374663849}]}

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. Middlesex Water Company was incorporated in 1896 and is headquartered in Iselin, New Jersey.

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
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
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 9.1%

Earnings Stability 76%

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	16%	17%	17%	23%	25%	27%	25%	26%	19%	21%
ROA	6.1%	6.6%	5.8%	4.8%	3.9%	3.8%	3.3%	4.4%	3.2%	3.5%
ROE	-	-	-	-	-	11%	9.9%	11%	7.4%	8.5%

What is the average Net Margin?

The average Net Margin over the past 5 years is +24.32%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.61%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +3.9%.

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

The trend of ROA over the past 5 years is -0.21%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +9.74%.

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

The trend of ROE over the past 5 years is -1.03%.

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	-	-	-	-	-	-	-6.99	-12.07	-10.90	-19.69
Debt Equity	-	-	-	-	-	0.82	0.88	0.90	0.96	1.68
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	80%	80%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -19.69.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.95.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.80.

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	3.3%	3.8%	5.5%	2.4%	0.14%
Net Income	4.8%	-0.57%	-6.4%	-26%	-2.8%
Stockholders Equity	-	-	6.9%	5.7%	-0.28%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.79%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.14%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -0.57%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.83%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.28%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

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