OTCPK:ARTN.B

Stock Analysis Report

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Executive Summary

Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services on the Delmarva Peninsula.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Artesian Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ARTN.B

5.3%

US Water Utilities

3.0%

US Market


1 Year Return

-4.4%

ARTN.B

10.4%

US Water Utilities

9.9%

US Market

Return vs Industry: ARTN.B underperformed the US Water Utilities industry which returned 10.4% over the past year.

Return vs Market: ARTN.B underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

ARTN.BIndustryMarket
7 Day0%5.3%3.0%
30 Day-6.1%5.5%8.2%
90 Day1.7%-0.04%0.4%
1 Year-1.7%-4.4%12.4%10.4%12.4%9.9%
3 Year-3.6%-11.1%57.0%47.9%31.0%22.3%
5 Year77.5%53.6%139.8%115.7%58.1%40.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Artesian Resources undervalued compared to its fair value and its price relative to the market?

21.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARTN.B ($33.8) is trading above our estimate of fair value ($19.99)

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


Price To Earnings Ratio

PE vs Industry: ARTN.B is good value based on its PE Ratio (21.2x) compared to the Water Utilities industry average (35.4x).

PE vs Market: ARTN.B is poor value based on its PE Ratio (21.2x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARTN.B is good value based on its PB Ratio (2x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

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

2.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ARTN.B's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if ARTN.B'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: ARTN.B's revenue (2.7% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: ARTN.B's revenue (2.7% 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 ARTN.B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Artesian Resources performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARTN.B has high quality earnings.

Growing Profit Margin: ARTN.B's current net profit margins (18.3%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: ARTN.B's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: ARTN.B's earnings growth over the past year (7.1%) is below its 5-year average (7.3% per year).

Earnings vs Industry: ARTN.B earnings growth over the past year (7.1%) exceeded the Water Utilities industry 2.3%.


Return on Equity

High ROE: ARTN.B's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Artesian Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARTN.B's short term assets ($12.7M) do not cover its short term liabilities ($27.9M).

Long Term Liabilities: ARTN.B's short term assets ($12.7M) do not cover its long term liabilities ($375.3M).


Debt to Equity History and Analysis

Debt Level: ARTN.B's debt to equity ratio (94.9%) is considered high.

Reducing Debt: ARTN.B's debt to equity ratio has reduced from 96.6% to 94.9% over the past 5 years.

Debt Coverage: ARTN.B's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: ARTN.B's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Artesian Resources's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARTN.B's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: ARTN.B's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (4.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.7%), ARTN.B's dividend payments are 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?

16.6yrs

Average management tenure


CEO

Dian Taylor (73yo)

27.58yrs

Tenure

US$983,218

Compensation

Ms. Dian C. Taylor has been the Chairman of the Board at Artesian Resources Corp. and its subsidiaries since July 1993 and its Chief Executive Officer and President since September 1992. Ms. Taylor serves  ...


CEO Compensation Analysis

Compensation vs Market: Dian's total compensation ($USD983.22K) is below average for companies of similar size in the US market ($USD2.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dian Taylor
Chairman27.58yrsUS$983.22k3.24% $10.6m
David Spacht
CFO & Treasurer25.33yrsUS$497.42k0.043% $140.0k
John Thaeder
Senior Vice President of Operations13yrsUS$431.98k0.35% $1.1m
Nicholle Taylor
Senior VP of Investor Relations & Director12.42yrsUS$518.59k3.21% $10.5m
Joseph DiNunzio
Executive VP & Corporate Secretary20.17yrsUS$541.44k0.20% $666.9k
Karl Randall
General Counsel & Assistant Secretary3.75yrsno data0.0094% $30.6k
Jennifer Finch
VP & Assistant Treasurer10.17yrsno data0.017% $55.9k

16.6yrs

Average Tenure

56yo

Average Age

Experienced Management: ARTN.B's management team is seasoned and experienced (16.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dian Taylor
Chairman27.58yrsUS$983.22k3.24% $10.6m
Nicholle Taylor
Senior VP of Investor Relations & Director12.42yrsUS$518.59k3.21% $10.5m
Kenneth Biederman
Independent Director29.33yrsUS$121.11k0.22% $730.3k
John Eisenbrey
Independent Director27.33yrsUS$120.11k1.04% $3.4m
William Wyer
Independent Director29.33yrsUS$137.60k0.20% $647.2k
Michael Houghton
Independent Director1.58yrsUS$61.00kno data

27.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: ARTN.B's board of directors are seasoned and experienced ( 27.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Artesian Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Artesian Resources Corporation
  • Ticker: ARTN.B
  • Exchange: OTCPK
  • Founded: 1905
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$325.735m
  • Shares outstanding: 9.31m
  • Website: https://www.artesianresources.com

Number of Employees


Location

  • Artesian Resources Corporation
  • 664 Churchmans Road
  • Newark
  • Delaware
  • 19702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARTN.BOTCPK (Pink Sheets LLC)Class B Common SharesUSUSDJan 1975
ARTN.ANasdaqGS (Nasdaq Global Select)YesClass A Non-Voting Common SharesUSUSDJun 1993

Biography

Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services on the Delmarva Peninsula. 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 designing, installing, maintaining, and repairing services for storm water management systems. As of December 31, 2019, it served approximately 87,800 metered water customers in Delaware, 2,500 metered water customers in Maryland, and 40 customers in Pennsylvania through 1,331 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 03:46
End of Day Share Price2020/05/21 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.