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MSEXP Stock Analysis 2026 - MIDDLESEX WATER CO AI Rating

MSEXP Nasdaq Water Supply NJ CIK: 0000066004
Recently Updated • Analysis: Apr 2, 2026 • SEC Data: 2025-12-31
HOLD
62% Conf
Pending
Analysis scheduled

📊 MSEXP Key Takeaways

Revenue: $194.7M
Net Margin: 22.0%
Free Cash Flow: $-12.0M
Current Ratio: 0.45x
Debt/Equity: 0.77x
EPS: $2.36
AI Rating: HOLD with 62% confidence

Is MSEXP a Good Investment? Thesis Analysis

Claude

Middlesex Water demonstrates solid operating profitability with a 27.9% operating margin and consistent revenue generation in the stable water utility sector. However, significant capital expenditure demands ($74.6M annually) exceed operating cash flow, resulting in negative free cash flow (-$12.0M) and raising concerns about dividend sustainability and financial flexibility. The company's weak liquidity position (0.45x current ratio) and moderate leverage (0.77x debt/equity) require careful monitoring amid ongoing infrastructure investment needs.

Why Buy MSEXP? Key Strengths

Claude
  • + Strong operating margin of 27.9% reflects efficient utility operations
  • + Stable revenue growth (+1.5% YoY) in defensive water utility sector
  • + Solid net income margin of 22.0% demonstrates profitability
  • + Reasonable debt service capacity with 5.1x interest coverage ratio

MSEXP Investment Risks to Consider

Claude
  • ! Negative free cash flow (-$12.0M) indicates CapEx exceeds operating cash generation
  • ! Critical liquidity concerns with 0.45x current ratio well below utility industry norms
  • ! EPS declining (-4.5% YoY) despite flat net income growth suggests share dilution pressure
  • ! Limited cash reserves ($2.8M) relative to $74.6M annual CapEx commitments creates refinancing dependency

Key Metrics to Watch

Claude
  • * Free cash flow trend and ability to fund capital expenditures without debt increases
  • * Current ratio and working capital adequacy to meet short-term obligations
  • * Operating cash flow growth relative to capital expenditure requirements
  • * Long-term debt levels and refinancing activities

MSEXP Financial Metrics

Revenue
$194.7M
Net Income
$42.8M
EPS (Diluted)
$2.36
Free Cash Flow
$-12.0M
Total Assets
$1.4B
Cash Position
$2.8M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

MSEXP Profitability Ratios

Gross Margin N/A
Operating Margin 27.9%
Net Margin 22.0%
ROE 8.7%
ROA 3.1%
FCF Margin -6.2%

MSEXP vs Default Sector

How MIDDLESEX WATER CO compares to Default sector averages

Net Margin
MSEXP 22.0%
vs
Sector Avg 12.0%
MSEXP Sector
ROE
MSEXP 8.7%
vs
Sector Avg 15.0%
MSEXP Sector
Current Ratio
MSEXP 0.4x
vs
Sector Avg 1.8x
MSEXP Sector
Debt/Equity
MSEXP 0.8x
vs
Sector Avg 0.7x
MSEXP Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is MSEXP Overvalued or Undervalued?

Based on fundamental analysis, MIDDLESEX WATER CO has mixed fundamental signals relative to the Default sector in 2026.

Return on Equity
8.7%
Sector avg: 15%
Net Profit Margin
22.0%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.77x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

MSEXP Balance Sheet & Liquidity

Current Ratio
0.45x
Quick Ratio
0.45x
Debt/Equity
0.77x
Debt/Assets
0.0%
Interest Coverage
5.07x
Long-term Debt
$378.9M

MSEXP 5-Year Financial Trend & Growth Analysis

MSEXP 5-year financial data: Year 2020: Revenue $141.4M, Net Income N/A, EPS N/A. Year 2021: Revenue $143.0M, Net Income $33.9M, EPS $2.01. Year 2022: Revenue $162.3M, Net Income $38.4M, EPS $2.18. Year 2023: Revenue $166.1M, Net Income $36.5M, EPS $2.07. Year 2024: Revenue $191.8M, Net Income $42.4M, EPS $2.39.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: MIDDLESEX WATER CO's revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.76 reflects profitable operations.

MSEXP Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-6.2%
Free cash flow / Revenue

MSEXP Quarterly Performance

Quarterly financial performance data for MIDDLESEX WATER CO including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2025 $49.1M $9.5M $0.59
Q1 2025 $40.5M $9.5M $0.53
Q3 2024 $46.7M $5.9M $0.56
Q2 2024 $42.8M $5.9M $0.55
Q1 2024 $38.1M $5.9M $0.33
Q3 2023 $46.7M $10.0M $0.56
Q2 2023 $39.6M $8.9M $0.50
Q1 2023 $36.2M $5.9M $0.33

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

MSEXP Capital Allocation

Operating Cash Flow
$62.6M
Cash generated from operations
Stock Buybacks
$379.0K
Shares repurchased (TTM)
Capital Expenditures
$74.6M
Investment in assets
Dividends Paid
$24.9M
Returned to shareholders

MSEXP SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for MIDDLESEX WATER CO (CIK: 0000066004)

📋 Recent SEC Filings

Date Form Document Action
Apr 1, 2026 4 xslF345X06/wk-form4_1775060467.xml View →
Apr 1, 2026 4 xslF345X06/wk-form4_1775060340.xml View →
Apr 1, 2026 4 xslF345X06/wk-form4_1775060221.xml View →
Apr 1, 2026 4 xslF345X06/wk-form4_1775060077.xml View →
Apr 1, 2026 4 xslF345X06/wk-form4_1775059877.xml View →

Frequently Asked Questions about MSEXP

What is the AI rating for MSEXP?

MIDDLESEX WATER CO (MSEXP) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are MSEXP's key strengths?

Claude: Strong operating margin of 27.9% reflects efficient utility operations. Stable revenue growth (+1.5% YoY) in defensive water utility sector.

What are the risks of investing in MSEXP?

Claude: Negative free cash flow (-$12.0M) indicates CapEx exceeds operating cash generation. Critical liquidity concerns with 0.45x current ratio well below utility industry norms.

What is MSEXP's revenue and growth?

MIDDLESEX WATER CO reported revenue of $194.7M.

Does MSEXP pay dividends?

MIDDLESEX WATER CO pays dividends, with $24.9M distributed to shareholders in the trailing twelve months.

Where can I find MSEXP SEC filings?

Official SEC filings for MIDDLESEX WATER CO (CIK: 0000066004) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is MSEXP's EPS?

MIDDLESEX WATER CO has a diluted EPS of $2.36.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is MSEXP a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, MIDDLESEX WATER CO has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is MSEXP stock overvalued or undervalued?

Valuation metrics for MSEXP: ROE of 8.7% (sector avg: 15%), net margin of 22.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy MSEXP stock in 2026?

Our dual AI analysis gives MIDDLESEX WATER CO a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is MSEXP's free cash flow?

MIDDLESEX WATER CO's operating cash flow is $62.6M, with capital expenditures of $74.6M. FCF margin is -6.2%.

How does MSEXP compare to other Default stocks?

Vs Default sector averages: Net margin 22.0% (avg: 12%), ROE 8.7% (avg: 15%), current ratio 0.45 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 2, 2026 | Data as of: 2025-12-31 | Powered by Claude AI