Middlesex Water Company (MSEX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-133.8%

-$19.69

vs $58.33 price

Levered DCF

-$66.63

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.23

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.36×	21.22×	37.07×	32.78×	57.84×	33.09×	31.47×	26.94×
P/B	1.84×	2.1×	2.74×	3.44×	5.69×	3.63×	3.25×	3.48×
P/S	4.69×	4.89×	7×	8.52×	14.7×	8.94×	7.88×	6.33×
EV / EBITDA	14.06×	14.34×	21.64×	21.79×	38.4×	26.41×	25.38×	19.78×
Gross margin	39.2%	51.9%	50.0%	51.3%	48.5%	50.0%	49.5%	48.2%
Operating margin	27.9%	27.7%	23.6%	29.1%	23.2%	26.4%	26.4%	26.9%
Net margin	22.0%	23.1%	19.0%	26.1%	25.5%	27.1%	25.2%	23.5%
Current ratio	0.45×	0.52×	1.05×	0.32×	0.61×	0.6×	0.45×	0.33×
Debt / equity	0.84×	0.86×	0.97×	0.91×	0.89×	0.83×	0.81×	0.83×
Interest coverage	3.8×	4.17×	3.66×	6.71×	6.08×	10.76×	8.63×	6.88×
Dividend yield	2.7%	2.5%	1.9%	1.5%	0.9%	1.4%	1.5%	1.7%
Payout ratio	58.2%	53.0%	71.6%	49.3%	53.3%	47.6%	48.1%	46.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.6%	9.9%	7.4%	10.5%	9.9%	11.0%	10.4%	12.9%
Return on invested capital	3.7%	3.8%	3.2%	4.3%	3.4%	4.0%	4.1%	5.0%
Return on assets	3.1%	3.5%	2.6%	3.9%	3.6%	3.9%	3.7%	4.2%
Free cash flow yield	-3.7%	-1.7%	-3.2%	-2.2%	-2.2%	-4.1%	-5.0%	-3.0%
Earnings yield	4.7%	4.7%	2.7%	3.1%	1.7%	3.0%	3.2%	3.7%
Enterprise value	$1.3B	$1.3B	$1.6B	$1.7B	$2.4B	$1.5B	$1.3B	$1.1B
Net debt / EBITDA	4.38×	4.15×	5.64×	4.53×	5.17×	4.83×	5.02×	3.76×
Cash conversion cycle (days)	-20	-28	123	-31	-21	-75	-44	-21