Investment Thesis
Artesian Resources demonstrates solid profitability with 20.2% net margins and consistent 4.6% YoY revenue growth, supported by strong operating cash flow of $40.3M. However, significant capital intensity (capex exceeding operating cash flow) results in negative free cash flow, and weak liquidity (0.64x current ratio) with minimal cash reserves creates financial flexibility constraints despite manageable leverage.
ARTNB Strengths
- Strong net profit margins of 20.2% and operating margins of 24.6% reflect pricing power and operational efficiency typical of regulated utility business
- Double-digit earnings growth (11.9% YoY net income increase) outpacing revenue growth suggests operational leverage and cost control
- Robust operating cash flow of $40.3M demonstrates the ability to service debt and fund capital investments from core operations
- Moderate leverage with 0.71x debt-to-equity ratio and 3.2x interest coverage indicates sustainable debt levels for regulated utility
ARTNB Risks
- Negative free cash flow of -$18.5M with capex ($58.8M) significantly exceeding operating cash flow signals heavy reinvestment requirements and reliance on external financing
- Critical liquidity position with current ratio of 0.64x and minimal cash reserves ($52K) creates vulnerability to unexpected operational demands or regulatory changes
- High capital intensity (capex-to-revenue ratio of 52%) typical of water utilities may constrain dividend growth and require continuous external capital
- Limited cash cushion relative to long-term debt of $176.4M (only $52K in reserves) indicates tight working capital management
Key Metrics to Watch
- Free cash flow trend - monitor whether capex moderates to improve FCF generation
- Current ratio and cash balance - watch for working capital improvements and debt refinancing activity
- Revenue growth sustainability - track whether 4.6% growth rate can be maintained in regulated rate environment
- Operating cash flow consistency - ensure $40M+ OCF levels persist to support debt service and capex
- Capital expenditure guidance - assess future capex requirements and potential debt/equity issuance needs
ARTNB Financial Metrics
ARTNB Profitability Ratios
ARTNB Balance Sheet & Liquidity
ARTNB 5-Year Financial Trend
5-Year Trend Summary: ARTESIAN RESOURCES CORP's revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.67 reflects profitable operations.
ARTNB Growth Metrics (YoY)
ARTNB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $29.1M | $4.4M | $0.66 |
| Q2 2025 | $27.4M | $4.4M | $0.52 |
| Q1 2025 | $24.5M | $4.4M | $0.43 |
| Q3 2024 | $26.6M | $3.7M | $0.49 |
| Q2 2024 | $25.3M | $3.7M | $0.44 |
| Q1 2024 | $22.5M | $3.7M | $0.39 |
| Q3 2023 | $26.6M | $3.7M | $0.49 |
| Q2 2023 | $25.0M | $3.7M | $0.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARTNB Capital Allocation
ARTNB SEC Filings
Access official SEC EDGAR filings for ARTESIAN RESOURCES CORP (CIK: 0000863110)