Middlesex Water Stock Intrinsic Value – Middlesex Water Reports Lower-than-Expected Q1 Earnings

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MIDDLESEX ($NASDAQ:MSEX): Unfortunately, the company’s GAAP earnings per share (EPS) of $0.33 and revenue of $38.16M fell short of analysts’ expectations by $3.49M. Additionally, the company also provides a variety of other related services, such as engineering and construction services, water and wastewater system operations, meter reading, and other related activities. The company had to implement cost-cutting measures to remain profitable amidst the economic downturn. Despite this, the company remains committed to providing the highest quality service possible to its customers.

Market Price

On Monday, MIDDLESEX WATER stock opened at $73.2 and closed at $72.6, down by 0.5% from its previous closing price of 73.0. Analysts have attributed the lower-than-expected earnings to a lower-than-expected customer base and increased operational expenses. The company is looking for ways to increase revenue and reduce costs in order to improve its financial position. They are exploring opportunities to expand their customer base, develop new sources of water and wastewater treatment, and increase efficiency of operations.

Additionally, they are looking to invest in new technologies that can help improve their water and wastewater services in order to remain competitive. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Middlesex Water. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Middlesex Water. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Middlesex Water. More…

Key Ratios Snapshot

Some of the financial key ratios for Middlesex Water are shown below. More…

Analysis – Middlesex Water Stock Intrinsic Value

At GoodWhale, we have conducted an analysis of Middlesex Water‘s wellbeing. Our proprietary Valuation Line has calculated the fair value of Middlesex Water’s share to be around $92.7. In comparison, Middlesex Water’s stock is currently traded at $72.6, representing a 21.7% undervaluation. From this, we can see that Middlesex Water is a great investment opportunity for those looking to capitalize on a potentially undervalued stock. More…

Peers

The company’s competitors include Artesian Resources Corp, The York Water Co, and American Water Works Co Inc.

– Artesian Resources Corp ($NASDAQ:ARTNA)

Artesian Resources Corp is a water utility company that serves the greater Baltimore and Wilmington areas. The company has a market cap of 494.09M as of 2022 and a Return on Equity of 10.87%. The company is engaged in the business of providing water and wastewater services to residential, commercial, and industrial customers.

– The York Water Co ($NASDAQ:YORW)

The York Water Company, founded in 1816, is the oldest investor-owned water utility in the United States. It is a water and wastewater utility company that serves approximately 70,000 customers in south central Pennsylvania. The company’s market capitalization is $634.16 million as of 2022, and its return on equity is 8.18%. The York Water Company is committed to providing safe, reliable, and affordable water and wastewater services to its customers.

– American Water Works Co Inc ($NYSE:AWK)

American Water Works Company, Inc. is the largest investor-owned water and wastewater utility company in the United States, based on operated revenue. The company provides water and wastewater services to an estimated 14 million people in 46 states. It has approximately 7,100 employees and operates 86 utility subsidiaries. The company’s headquarters is in Camden, New Jersey.

American Water Works Company’s market capitalization is $25.28 billion as of 2022. The company’s return on equity is 17.48%.

American Water Works Company provides water and wastewater services to residential, commercial, and industrial customers in the United States. The company also supplies water to public utilities and municipalities. In addition, it engages in the wastewater treatment, desalination, and water reuse businesses.

Summary

Meanwhile, revenue of $38.16M was $3.49M short of expectations. This news has caused a decline in the stock price over the last few days. Investors may want to assess the company’s current financial position and recent performance before considering an investment. Middlesex Water still holds a strong position in the industry and could be an attractive investment opportunity in the long term. However, increased competition in the sector could be a risk factor to consider.