NasdaqGS:MSEX

Stock Analysis Report

Executive Summary

Middlesex Water Company, together with its subsidiaries, owns and operates regulated water utility and wastewater systems.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Middlesex Water's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSEX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

MSEX

-1.4%

US Water Utilities

-1.1%

US Market


1 Year Return

18.1%

MSEX

32.6%

US Water Utilities

17.8%

US Market

Return vs Industry: MSEX underperformed the US Water Utilities industry which returned 32.6% over the past year.

Return vs Market: MSEX matched the US Market which returned 17.8% over the past year.


Shareholder returns

MSEXIndustryMarket
7 Day-1.4%-1.4%-1.1%
30 Day3.6%1.4%1.5%
90 Day10.4%13.5%6.6%
1 Year20.0%18.1%34.9%32.6%20.2%17.8%
3 Year92.5%81.6%83.0%72.5%47.5%38.1%
5 Year237.6%201.6%159.3%133.1%71.2%52.4%

Price Volatility Vs. Market

How volatile is Middlesex Water's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Middlesex Water undervalued compared to its fair value and its price relative to the market?

34.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSEX ($68.26) is trading above our estimate of fair value ($23.55)

Significantly Below Fair Value: MSEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSEX is good value based on its PE Ratio (34.5x) compared to the Water Utilities industry average (39.2x).

PE vs Market: MSEX is poor value based on its PE Ratio (34.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MSEX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MSEX is overvalued based on its PB Ratio (4.1x) compared to the US Water Utilities industry average (2.9x).


Next Steps

Future Growth

How is Middlesex Water forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MSEX's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MSEX's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MSEX's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MSEX's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSEX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Middlesex Water performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSEX has high quality earnings.

Growing Profit Margin: MSEX's current net profit margins (24.2%) are higher than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: MSEX's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: MSEX's earnings growth over the past year (6.6%) is below its 5-year average (13.2% per year).

Earnings vs Industry: MSEX earnings growth over the past year (6.6%) exceeded the Water Utilities industry 1%.


Return on Equity

High ROE: MSEX's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Middlesex Water's financial position?


Financial Position Analysis

Short Term Liabilities: MSEX's short term assets ($34.7M) do not cover its short term liabilities ($103.5M).

Long Term Liabilities: MSEX's short term assets ($34.7M) do not cover its long term liabilities ($506.0M).


Debt to Equity History and Analysis

Debt Level: MSEX's debt to equity ratio (105.8%) is considered high.

Reducing Debt: MSEX's debt to equity ratio has increased from 83.2% to 105.8% over the past 5 years.

Debt Coverage: MSEX's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: MSEX's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: MSEX has a high level of physical assets or inventory.

Debt Coverage by Assets: MSEX's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Middlesex Water's current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MSEX's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MSEX's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: MSEX's dividends per share have been stable in the past 10 years.

Growing Dividend: MSEX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.4%), MSEX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Dennis Doll (60yo)

14.1yrs

Tenure

US$1,413,006

Compensation

Mr. Dennis W. Doll, CPA, has been the Chief Executive Officer and President of Middlesex Water Co. since January 1, 2006 and joined its in 2004. Mr. Doll served as an Executive Vice President of Middlesex  ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD1.41M) is below average for companies of similar size in the US market ($USD2.51M).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Doll
Chairman14.1yrsUS$1.41m0.57% $6.8m
A. O'Connor
Senior VP24.1yrsUS$672.43k0.23% $2.7m
Robert Fullagar
Vice President of Operations0.6yrsno data0.012% $137.2k
Jay Kooper
VP, General Counsel & Secretary5.9yrsno data0.0021% $24.4k
Lorrie Ginegaw
Vice President of Human Resources7.9yrsno data0.053% $633.9k

7.9yrs

Average Tenure

53yo

Average Age

Experienced Management: MSEX's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Doll
Chairman14.1yrsUS$1.41m0.57% $6.8m
Jeffries Shein
Lead Director9.7yrsUS$44.95k1.92% $22.9m
Walter Reinhard
Independent Director18.1yrsUS$44.50k0.045% $530.8k
Steven Klein
Independent Director10.5yrsUS$49.70k0.037% $446.1k
Ann Noble
Director0.8yrsno data0.0036% $42.6k
Amy Mansue
Independent Director10.1yrsUS$47.00k0.044% $526.1k
James Cosgrove
Independent Director10.1yrsUS$43.20k0.040% $476.9k
Kim Hanemann
Independent Director4.1yrsUS$40.70k0.013% $157.5k

9.9yrs

Average Tenure

56yo

Average Age

Experienced Board: MSEX's board of directors are considered experienced (9.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MSEX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Middlesex Water Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Middlesex Water Company
  • Ticker: MSEX
  • Exchange: NasdaqGS
  • Founded: 1897
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$1.190b
  • Shares outstanding: 17.43m
  • Website: https://www.middlesexwater.com

Number of Employees


Location

  • Middlesex Water Company
  • 485C Route 1 South
  • Suite 400
  • Iselin
  • New Jersey
  • 8830
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSEXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
MSXBST (Boerse-Stuttgart)YesCommon StockDEEURJan 1969

Biography

Middlesex Water Company, together with its subsidiaries, owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The Regulated segment engages in collecting, treating, and distributing water on a retail and wholesale basis to residential, commercial, industrial, and fire protection customers in parts of New Jersey, Delaware, and Pennsylvania. This segment also includes 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 founded in 1897 and is headquartered in Iselin, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:41
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.