Middlesex Water Intrinsic Value – Middlesex Water Reports Missed Earnings and Revenue Estimates
November 11, 2023
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The results fell short of the analyst and investor expectations, with a GAAP EPS of $0.56 and revenue of $46.72M missing estimates by $4.73M. The company also operates regulated water and wastewater systems in other states, such as Maryland and Virginia. In addition, Middlesex Water ($NASDAQ:MSEX) also provides non-utility services such as water supply services and related services, including wastewater treatment and water reclamation services.
Earnings
MIDDLESEX WATER recently reported their second quarter earning report for FY2023 that ended on June 30, 2021. The report showed that the company earned a total revenue of 36.7M USD, and a net income of 10.92M USD. When compared to the results a year ago, this marks a 7.5% decrease in total revenue and a 23.1% increase in net income. However, MIDDLESEX WATER has seen an overall growth in total revenue, reaching from 36.7M USD to 42.8M USD in the last 3 years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Middlesex Water. More…
| Total Revenues | Net Income | Net Margin |
| 167.51 | 37.11 | 22.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Middlesex Water. More…
| Operations | Investing | Financing |
| 63.79 | -102.63 | 38.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Middlesex Water. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.13k | 714.02 | 23.33 |
Key Ratios Snapshot
Some of the financial key ratios for Middlesex Water are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | 6.5% | 28.5% |
| FCF Margin | ROE | ROA |
| -23.2% | 7.3% | 2.6% |
Share Price
Middlesex Water reported missed earnings and revenue estimates on Friday, sending its stock tumbling in the market. Opening at $63.3, the stock closed the day at $61.7, a decrease of 2.6% from the prior closing price. This marks the third consecutive quarter that Middlesex Water failed to meet its financial expectations, raising concerns among investors. Live Quote…
Analysis – Middlesex Water Intrinsic Value
GoodWhale has analyzed MIDDLESEX WATER‘s financials and concluded that the intrinsic value of MIDDLESEX WATER’s share is around $94.5, as determined by our proprietary Valuation Line. Currently, MIDDLESEX WATER stock is trading at $61.7, a full 34.7% below its intrinsic value. This indicates that MIDDLESEX WATER is currently undervalued and could be a wise investment for those looking to capitalize on market inefficiencies. More…
Peers
The company’s competitors include Artesian Resources Corp, The York Water Co, and American Water Works Co Inc.
– Artesian Resources Corp ($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
This represented a decrease of 4.73 million compared to the same period in the prior year. Despite the miss, the company saw an increase in operating income, due to a corresponding decline in operating expenses. With customer demand remaining strong, Middlesex Water is expected to continue to benefit from higher customer base and revenue. Going forward, investors should watch for continued improvements in operating income and expenses, as well as any changes in customer growth that could potentially affect Middlesex Water’s bottom line.
In addition, capital investments should be monitored as the company seeks to improve operational efficiency and customer service. Ultimately, an analysis of Middlesex Water’s financials can provide investors with insights into the company’s current performance and potential future success.
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