Bedrijfsoverzicht
Artesian Resources Corporation is a utility enterprise focused on the provision of essential water, wastewater, and related services across the states of Delaware, Maryland, and Pennsylvania. The company operates within the Utilities sector, specifically the regulated water industry, which implies that its operations and rates are subject to oversight by public utility commissions to ensure fair pricing and reliable service delivery. This regulated environment provides a stable revenue stream derived from distributing water to residential, commercial, industrial, governmental, municipal, and utility customers, alongside public and private fire protection services. The company's market capitalization stands at $342.23M, supported by an annual revenue of $112.94M and a workforce of 272 employees. These valuation and revenue figures indicate that Artesian Resources Corporation maintains a mid-cap position within the water utility landscape, reflecting a specialized operational footprint rather than a massive conglomerate scale, yet one that generates consistent utility flows in its specific geographic regions.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $112.94M with a corresponding net income of $22.82M and an EBITDA of $49.42M. The significant gap between the $112.94M revenue and the $22.82M net income highlights a substantial cost structure comprising operating expenses, depreciation, and interest costs that reduce pre-tax earnings to the final bottom line. While the EBITDA of $49.42M suggests strong operational cash generation before financing and non-cash charges, the Free Cash Flow stands at -$23,223,624, indicating that capital expenditures or other non-cash adjustments currently exceed the operating cash inflows, limiting immediate financial flexibility for large-scale internal growth. The company maintains a Gross Margin of 49.4%, an Operating Margin of 25.4%, and a Profit Margin of 20.2%, where the drop from gross to operating margin reflects significant overhead costs inherent in water distribution infrastructure, and the final profit margin demonstrates the impact of interest and taxes. On the balance sheet, cash holdings are minimal at $52,000 compared to total debt of $182.65M, resulting in a Debt to Equity ratio of 73.08, which signifies a highly leveraged financial position typical for capital-intensive utility assets. The Current Ratio of 0.64 suggests that current liabilities exceed current assets, pointing to potential short-term liquidity pressure that must be managed through refinancing or cash flow generation. Management effectiveness is further scrutinized through the Return on Equity of 9.3% and Return on Assets of 2.7%, where the low ROA relative to ROE indicates that the high debt load is amplifying returns for shareholders but also increases the risk profile of the asset base.
Waarderingsbeoordeling
Artesian Resources Corporation currently trades with a P/E Ratio (TTM) of 15.05 and a Forward P/E of 15.91. The slight increase from the trailing P/E to the forward P/E implies that the market expects earnings growth to outpace the current performance or that the current earnings level is being re-rated slightly higher in anticipation of future results. The Price to Book ratio is 1.37, which indicates that the market values the company at a premium of 37% over its net book value, a common characteristic for regulated utilities where brand and license value are capitalized. Alternative valuation metrics include a Price to Sales ratio of 3.03 and an EV/EBITDA of 10.64, suggesting that the company is valued at roughly ten times its earnings before interest, taxes, depreciation, and amortization, which is a moderate multiple for the utility sector. Regarding price volatility, the stock has a 52-week high of $36.19 and a 52-week low of $30.50; without a specific current price listed in the provided facts, the exact percentage deviation cannot be calculated, but the trading range defines the historical price boundaries for the asset. The Beta is 0.36, which indicates that the stock is significantly less volatile than the broader market, moving only about 36% of the magnitude of market swings, thereby offering a defensive profile for portfolios seeking stability.
Growth & Income
The company demonstrated a Revenue Growth (YoY) of 4.3% and an Earnings Growth (YoY) of 8.1% over the most recent year. The fact that earnings growth outpaces revenue growth by a margin of 3.8 percentage points implies that the company is successfully controlling costs or benefiting from margin expansion rather than relying solely on top-line volume increases to drive profitability. As a dividend payer, Artesian Resources Corporation offers a Dividend Yield of 3.7% with a Payout Ratio of 55.6%. This payout ratio is generally considered sustainable given the 20.2% profit margin, as it allows the company to return more than half of its earnings to shareholders while retaining sufficient capital for operations and debt servicing. The high dividend yield combined with the low beta suggests an income-oriented profile, though the negative free cash flow requires careful monitoring to ensure dividend coverage remains robust despite capital outlays. The overall growth and income profile is characterized by steady double-digit earnings expansion supported by a high-yield dividend, offering a balance of capital appreciation potential and current income within a low-volatility utility framework.