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MSEXMiddlesex Water Company
$55.82$1.0B
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Middlesex Water Company (MSEX) Financial Ratios

Latest Ratios: P/E Ratio 23.7x · EV/EBITDA 16.7x · ROE 9.1%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MSEX Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.0B$915M$944M$1.2B$1.4B$2.1B$1.3B$1.1B$882M$658M$705M
Enterprise Value$1.5B$1.3B$1.3B$1.6B$1.8B$2.4B$1.6B$1.3B$1.1B$827M$854M
P/E Ratio →23.6521.3621.3137.2832.9258.1233.2431.6327.2228.9231.12
P/S Ratio5.334.704.927.048.5814.808.997.956.395.035.31
P/B Ratio2.051.852.112.763.465.733.663.283.512.843.19
P/FCF———————————
P/OCF16.5714.6216.0822.1922.7164.1323.8729.6719.2415.3614.98

P/E links to full P/E history page with 30-year chart

MSEX EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—6.846.919.5110.8117.0810.999.897.886.326.43
EV / EBITDA16.7315.3316.3223.0323.4840.7526.7225.2420.5515.7115.87
EV / EBIT26.7321.5020.7136.5333.3266.9641.2038.1828.0521.3621.82
EV / FCF———————————

MSEX Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin39.2%39.2%51.9%50.0%51.3%48.5%50.0%49.5%48.2%50.6%50.7%
Operating Margin27.9%27.9%27.7%23.6%29.1%23.2%26.4%26.4%26.9%28.9%30.3%
Net Profit Margin22.0%22.0%23.1%19.0%26.1%25.5%27.1%25.2%23.5%17.4%17.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE9.1%9.1%10.2%7.6%11.0%10.2%11.4%11.7%13.4%10.1%10.6%
ROA3.3%3.3%3.6%2.7%4.1%3.7%4.1%4.0%4.5%3.6%3.8%
ROIC4.7%4.7%4.8%3.7%4.9%3.8%4.6%5.1%6.5%7.4%8.4%
ROCE4.4%4.4%4.6%3.8%4.9%3.5%4.2%4.7%5.8%6.5%7.1%

MSEX Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.850.850.860.970.910.890.830.810.830.750.69
Debt / EBITDA4.834.834.756.004.915.514.945.003.943.302.84
Net Debt / Equity—0.840.850.960.900.880.810.800.820.730.67
Net Debt / EBITDA4.794.794.705.974.855.454.864.963.873.212.76
Debt / FCF———————————
Interest Coverage4.334.335.014.047.486.6910.878.477.198.068.38

MSEX Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.450.450.521.050.320.610.600.450.330.450.57
Quick Ratio0.360.360.440.980.260.510.510.360.270.390.48
Cash Ratio0.030.030.050.020.030.060.080.030.040.080.08
Asset Turnover—0.140.150.130.150.140.150.150.180.200.21
Inventory Turnover15.6815.6813.7511.9212.8013.7513.8512.4813.2315.7016.01
Days Sales Outstanding———————————

MSEX Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.5%2.7%2.5%1.9%1.5%0.9%1.4%1.5%1.7%2.1%1.9%
Payout Ratio58.2%58.2%52.8%71.2%49.0%53.0%47.3%47.7%46.0%61.4%57.8%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield4.2%4.7%4.7%2.7%3.0%1.7%3.0%3.2%3.7%3.5%3.2%
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield2.5%2.7%2.5%1.9%1.5%0.9%1.4%1.5%1.7%2.1%1.9%
Shares Outstanding—$18M$18M$18M$18M$18M$18M$17M$17M$16M$16M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowBurning
Top Statement Risk

Regulatory lag and PFAS

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Valuation Reflects Regulatory Stability

According to current market data, MSEX trades at a TTM P/E of 23.51, which suggests investors are pricing in the defensive nature of its New Jersey franchise despite the modest 2.5% dividend yield that trails several smaller regional water utility peers.

The valuation appears anchored to the company's reputation for consistent rate base growth rather than immediate earnings acceleration. Investors should monitor whether the forward P/E of 22.02 remains sustainable if regulatory lag in the New Jersey jurisdiction continues to compress the spread between allowed and earned returns.

ROE Compression Signals Regulatory Headwinds

Based on the provided quarterly figures, the company's ROE has fluctuated between 1.4% and 3.3% over the last ten quarters, which indicates a significant gap between actual performance and the typical authorized ROE levels expected for a regulated water utility.

This persistent under-earning relative to industry standards suggests that the company is experiencing substantial regulatory lag or that the cost of mandatory infrastructure upgrades is outpacing the timing of rate recovery. Analysts should investigate whether recent rate filings are sufficient to bridge this gap or if structural margin pressure will persist.

Conservative Capital Structure Provides Flexibility

As reported in recent financial statements, the company maintains a debt-to-capital ratio of approximately 0.46, which appears to be a deliberate strategy to preserve credit quality while navigating the high capital intensity of its ongoing infrastructure renewal programs.

This conservative leverage profile provides the company with significant dry powder to fund necessary PFAS remediation without immediate risk to its investment-grade credit profile. However, the reliance on equity issuance to maintain these ratios may continue to dilute earnings per share growth for existing shareholders.

Dividend Sustainability Amidst Capital Intensity

According to the reported financial data, the dividend payout ratio has shown extreme volatility, reaching as high as 101.3% in 2023Q4, which warrants further investigation into the company's ability to fund both its aggressive CAPEX requirements and shareholder distributions simultaneously.

The inconsistency in payout levels suggests that the dividend is currently sensitive to the timing of regulatory rate adjustments and the high cash requirements of the 'Renew' program. Investors should monitor whether the company can stabilize its cash flow generation to support a more predictable dividend growth trajectory.

Misapplication of P/E to Utilities

The most commonly misapplied metric for MSEX is the standard P/E ratio, which fails to account for the non-cash impact of AFUDC and the regulatory accounting nuances that often distort reported earnings in capital-intensive water utilities.

Comparing MSEX's P/E to non-regulated industrials obscures the fact that utility earnings are essentially a function of the regulatory compact rather than competitive market share. Analysts should instead focus on the Price-to-Rate-Base or EV/Rate-Base to better understand the true valuation of the company's regulated asset growth.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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MSEX — Frequently Asked Questions

Quick answers to the most common questions about buying MSEX stock.

What is Middlesex Water Company's P/E ratio?

Middlesex Water Company's current P/E ratio is 23.7x. The historical average is 25.7x. This places it at the 53th percentile of its historical range.

What is Middlesex Water Company's EV/EBITDA?

Middlesex Water Company's current EV/EBITDA is 16.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.

What is Middlesex Water Company's ROE?

Middlesex Water Company's return on equity (ROE) is 9.1%. The historical average is 9.5%.

Is MSEX stock overvalued?

Based on historical data, Middlesex Water Company is trading at a P/E of 23.7x. This is at the 53th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Middlesex Water Company's dividend yield?

Middlesex Water Company's current dividend yield is 2.46% with a payout ratio of 58.2%.

What are Middlesex Water Company's profit margins?

Middlesex Water Company has 39.2% gross margin and 27.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Middlesex Water Company have?

Middlesex Water Company's Debt/EBITDA ratio is 4.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.