Middlesex Water Stock Analysis, Valuation (NASDAQ:MSEX)

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$47.34 $0.38 (0.81%) MSEX stock closing price Aug 17, 2018 (Closing)

Watch the robo advisor video of Middlesex Water stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for MSEX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Middlesex Water Company Stock Rating 3/5

Amigobulls MSEX stock analysis uses latest quarter 2018 Q2 financial data like Middlesex Water revenue growth, profit margins and cash flows. Middlesex Water valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Middlesex Water stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MSEX stock?

  • Middlesex Water had a healthy average operating margin of 28.21 over the last 4 quarters.
  • Net margins came in at average 17.3% for Middlesex Water over the last twelve months.
  • Middlesex Water has a lower debt burden than its peers in the Utilities sector, with a debt/equity ratio of 0.75.
  • Middlesex Water has an attractive ROIC (Return on Invested Capital) of 4.7

Should you sell MSEX stock?

  • MSEX stock is trading at a PE ratio of 29.9, which is worse than the sector average multiple of 20.1.
  • MSEX stock is trading at a PS multiple of 5.8, which is a negative when compared to the Utilities sector average multiple of 2.1.
  • Middlesex Water has a negative FCF (Free Cash Flow) margin of -3.3.

Comments on this video and Middlesex Water stock

Investors can use Amigobulls Middlesex Water stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Middlesex Water revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of MSEX technical analysis to check whether the fundamental story is reflected in the market sentiment.