NasdaqGS:MSEX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.4%

MSEX

1.1%

US Water Utilities

0.5%

US Market


1 Year Return

42.3%

MSEX

30.0%

US Water Utilities

6.8%

US Market

Return vs Industry: MSEX exceeded the US Water Utilities industry which returned 30% over the past year.

Return vs Market: MSEX exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

MSEXIndustryMarket
7 Day0.4%1.1%0.5%
30 Day2.3%1.9%-0.8%
90 Day8.6%9.6%-0.9%
1 Year44.7%42.3%32.5%30.0%9.2%6.8%
3 Year102.9%90.7%77.4%66.9%45.6%36.2%
5 Year252.3%212.0%148.4%122.5%63.2%45.4%

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?

31.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSEX ($65.11) is trading above our estimate of fair value ($20.13)

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 (31.6x) compared to the Water Utilities industry average (39.8x).

PE vs Market: MSEX is poor value based on its PE Ratio (31.6x) compared to the US market (17.7x).


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 (2.7x).


Next Steps

Future Growth

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

-6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSEX's earnings are forecast to decline over the next 3 years (-6.1% per year).

Earnings vs Market: MSEX's earnings are forecast to decline over the next 3 years (-6.1% per year).

High Growth Earnings: MSEX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MSEX's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MSEX's revenue (3% 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?

13.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MSEX's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: MSEX's earnings growth over the past year (30.1%) exceeds its 5-year average (13.1% per year).

Earnings vs Industry: MSEX earnings growth over the past year (30.1%) exceeded the Water Utilities industry 2.3%.


Return on Equity

High ROE: MSEX's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: MSEX has a higher Return on Assets than the Water Utilities industry average last year.


Return on Capital Employed

ROCE Improving: MSEX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Middlesex Water's financial position?


Financial Position Analysis

Short Term Liabilities: MSEX's short term assets ($32.3M) do not cover its short term liabilities ($102.5M)

Long Term Liabilities: MSEX's short term assets (32.3M) do not cover its long term liabilities (439.3M)


Debt to Equity History and Analysis

Debt Level: MSEX's debt to equity ratio (86.7%) is considered high

Reducing Debt: MSEX's debt to equity ratio has increased from 85.2% to 86.7% over the past 5 years.

Debt Coverage: MSEX's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: MSEX's interest payments on its debt are well covered by EBIT (5.5x 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?

1.47%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MSEX's dividend (1.47%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MSEX's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (45.8%), 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

What is the CEO of Middlesex Water's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Dennis Doll (60yo)

13.8yrs

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 ($USD1.41M) is below average for companies of similar size in the US market ($USD2.70M).

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


Management Age and Tenure

7.6yrs

Average Tenure

53yo

Average Age

Experienced Management: MSEX's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

56yo

Average Age

Experienced Board: MSEX's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$30,69509 Jul 19
Robert Fullagar
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares500
Max PriceUS$61.39
SellUS$39,96208 Jul 19
Lorrie Ginegaw
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares650
Max PriceUS$61.48
SellUS$23,85312 Jun 19
Walter Reinhard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares399
Max PriceUS$59.82
SellUS$24,38007 Jun 19
Bernadette Sohler
EntityIndividual
Shares406
Max PriceUS$60.05
SellUS$103,80216 May 19
A. O'Connor
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares1,700
Max PriceUS$61.06
SellUS$191,77913 May 19
Dennis Doll
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,127
Max PriceUS$61.33
SellUS$34328 Mar 19
Bernadette Sohler
EntityIndividual
Shares6
Max PriceUS$57.19
SellUS$115,70022 Mar 19
Dennis Doll
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,000
Max PriceUS$57.85
SellUS$28,92522 Mar 19
Bernadette Sohler
EntityIndividual
Shares500
Max PriceUS$57.85
SellUS$40,47120 Mar 19
Lorrie Ginegaw
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares720
Max PriceUS$56.21
SellUS$29,00528 Jan 19
Walter Reinhard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$58.01
SellUS$198,84009 Nov 18
Dennis Doll
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares4,000
Max PriceUS$49.71
SellUS$12,77509 Nov 18
Bernadette Sohler
EntityIndividual
Shares257
Max PriceUS$49.71

Ownership Breakdown


Management Team

  • A. O'Connor (60yo)

    Senior VP

    • Tenure: 23.8yrs
    • Compensation: US$672.43k
  • Dennis Doll (60yo)

    Chairman

    • Tenure: 13.8yrs
    • Compensation: US$1.41m
  • Jay Kooper (46yo)

    VP, General Counsel & Secretary

    • Tenure: 5.6yrs
  • Lorrie Ginegaw (44yo)

    Vice President of Human Resources

    • Tenure: 7.6yrs
  • Robert Fullagar

    Vice President of Operations

    • Tenure: 0.3yrs

Board Members

  • Jeffries Shein (79yo)

    Lead Director

    • Tenure: 9.3yrs
    • Compensation: US$44.95k
  • Walter Reinhard (73yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$44.50k
  • Dennis Doll (60yo)

    Chairman

    • Tenure: 13.8yrs
    • Compensation: US$1.41m
  • Steve Klein (53yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$49.70k
  • Ann Noble (57yo)

    Director

    • Tenure: 0.5yrs
  • Amy Mansue (54yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$47.00k
  • James Cosgrove (55yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$43.20k
  • Kim Hanemann (55yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$40.70k

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$1.079b
  • Shares outstanding: 16.57m
  • 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 en ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:39
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.