Middlesex Water Company Common Stock (MSEX)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Warren Buffett and Benjamin Graham taught me to look for durable demand, honest accounting, and a price that leaves a margin for error. Middlesex Water has the first quality: it provides regulated water and wastewater service, a necessity with local monopoly-like characteristics. The filed figures show decent recent momentum. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $56.4M, net income $14.8M, and diluted EPS $0.79, compared with revenue $49.3M, net income $10.8M, and diluted EPS $0.60 in fiscal Q2 2025. That is strong short-term growth. But the annual record is slower. FY2025 revenue was $194.7M, net income $42.8M, and diluted EPS $2.36, versus FY2024 revenue $191.8M, net income $44.4M, and diluted EPS $2.47. FairStock classifies it as a SLOW GROWER because profit grew 2.2% a year over five years and revenue 6.6%. Financial health is mixed. FairStock's Piotroski F-Score is 8/9, but trailing free cash flow is -$40.5M, FCF yield -4.0%, Altman Z-Score 0.94, D/E 0.84, ROE 9.77%, and ROCE 2.96%. At the 2026-10-13 close of $53.80, FairStock calculates P/E 20.77, P/B 1.95, Graham Number $40.20, margin of safety -33.83%, and EV/EBITDA 14.42. The FairStock Score is 34/100. The price looks full for a slow-growing, capital-hungry regulated utility. I would want a much wider discount before calling it a bargain.

In plain English: Middlesex Water Company provides regulated water and wastewater service to homes, businesses, and municipalities, so demand for its basic service is steady. The business looks reasonably sturdy but not fast-growing, and it spends heavily on its systems, leaving free cash flow negative. At the price of $53.80 on 2026-10-13, the stock looks expensive compared with the company's earnings and a conservative asset-based value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer