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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Middlesex Water (MSEX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Middlesex Water is a member of our Utilities group, which includes 104 different companies and currently sits at #6 in the Zacks Sector R ...

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Company Overview - Middlesex Water (MSEX) is a Utilities stock headquartered in Iselin, with a price change of 12.05% so far this year [3] - The company currently pays a dividend of $0.34 per share, resulting in a dividend yield of 2.31%, which is lower than the Utility - Water Supply industry's yield of 2.65% but higher than the S&P 500's yield of 1.56% [3] Dividend Performance - The current annualized dividend of Middlesex Water is $1.36, reflecting a 3.4% increase from the previous year [4] - Over the last 5 years, Middlesex Water has increased its dividend 5 times on a year-over-year basis, with an average annual increase of 6.20% [4] - The company's current payout ratio is 55%, indicating that it paid out 55% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Middlesex Water's earnings for 2025 is $2.50 per share, representing a year-over-year growth rate of 1.21% [5] Investment Appeal - Middlesex Water is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Group 1 - Middlesex Water (MSEX) is currently outperforming its peers in the Utilities sector, with a year-to-date return of approximately 13.1% compared to the sector average of 2.8% [4] - The Zacks Rank for Middlesex Water is 2 (Buy), indicating a positive earnings outlook and improving analyst sentiment, as the consensus estimate for full-year earnings has increased by 1.3% over the past 90 days [3][4] - Middlesex Water belongs to the Utility - Water Supply industry, which has gained an average of 9.3% this year, further highlighting its strong performance within its specific industry [6] Group 2 - NiSource (NI) is another stock in the Utilities sector that has shown solid performance, with a year-to-date return of 8.2% and a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for NiSource has increased by 2.7% over the past three months, indicating a positive trend in earnings expectations [5] - NiSource operates in the Utility - Electric Power industry, which has seen a gain of 3.3% this year, ranking 88 among 60 stocks in that industry [6]

Core Viewpoint - Middlesex Water experienced a significant share price increase of 12.8% following the release of its Q4 earnings, which exceeded expectations with a reported profit of $0.49 per share compared to the anticipated $0.37 per share [1][2]. Financial Performance - Q4 revenue increased by 22%, while quarterly profit surged by 53%, attributed to a rate increase and weather-driven customer demand [3]. - For the full year 2024, revenue rose by 15% year-over-year, and profits increased by 40% to $2.47 per share [3]. - The company benefited from a one-time recovery of previously incurred costs amounting to $6.0 million [3]. Stock Valuation - Middlesex Water is valued at approximately $1 billion, with a P/E ratio of 23.5 times trailing earnings and a dividend yield of 2.7%, which is about twice the average for S&P 500 stocks [4]. - The stock is considered reasonably priced, with a P/E ratio that is 20% cheaper than the average [4]. Growth Prospects - The 40% growth in profits for 2024 is seen as exceptional but may not be sustainable, with analysts suggesting a more realistic long-term earnings growth rate of 14% [5]. - Assuming a total annual return of about 17% from earnings growth and dividend yield, the stock's valuation reflects a total return ratio of approximately 1.4x, indicating it is neither cheap nor overly expensive [5].

Core Insights - Middlesex Water Company reported a strong financial performance for 2024, with net income of $44.4 million and diluted EPS of $2.47, marking significant growth from $31.5 million and $1.76 in 2023 [1][10] Financial Performance - The net income for 2024 increased by $12.8 million compared to 2023, driven by a base rate increase, one-time recovery of costs, and increased customer demand due to weather [3] - Revenues for 2024 reached $191.9 million, up $25.6 million from $166.3 million in 2023, with the Middlesex System contributing $19.9 million to this increase [4] - Operating expenses rose to $92.4 million in 2024, an increase of $9.3 million from $83.1 million in 2023, primarily due to higher legal, labor, and energy costs [5] Quarterly Results - For the fourth quarter of 2024, net income was $8.8 million with diluted EPS of $0.49, compared to $5.8 million and $0.32 in the same quarter of 2023 [6] Infrastructure Investments - In 2024, the company invested $75 million in upgrading and enhancing its water and wastewater utility infrastructure [7] - Planned infrastructure investments for 2025 are approximately $93 million, with a total of $387 million expected from 2025 to 2027, including $105 million for PFAS treatment [8] Dividend Information - The Board of Directors declared a first quarter cash dividend of $0.34 per common share, continuing a history of cash dividends since 1912 and increasing dividends for 52 consecutive years [12] Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility, serving over half a million people in New Jersey and Delaware, focusing on operational excellence and sustainable growth [13]

Capital Investment and Projects - Middlesex Water Company plans to invest approximately $93 million in 2025 for capital projects, including the replacement of 19,550 linear feet of cast iron main and construction of new elevated water tanks in Delaware [181]. - The Company has projected to spend approximately $387 million for the 2025-2027 capital investment program, including $105 million for upgrading the Carl J. Olson Surface Water Treatment Plant to integrate PFAS removal [194]. - Tidewater's acquisition of the water utility assets of Ocean View, Delaware for $4.6 million is expected to close by April 2025, serving approximately 900 customers [177]. - Middlesex has received approval to borrow up to $300.0 million from the New Jersey SRF Program through December 31, 2025, to fund its multi-year capital construction program [229]. - Tidewater closed on a $2.2 million Delaware SRF loan at a 0.0% interest rate, with an expected maturity date in 2044, for costs associated with identifying lead service lines [230]. - Tidewater has two active construction projects funded by Delaware SRF loans totaling $8.3 million, with $4.9 million drawn down as of December 31, 2024 [232]. Revenue and Income - The approved settlement of the Middlesex 2023 base rate case is expected to increase annual operating revenues by $15.4 million, effective March 1, 2024, based on an authorized return on common equity of 9.6% [183]. - Tidewater's application for a general rate increase seeks an overall increase in annual operating revenue of $10.3 million or 25.66% over current revenue, to recover investments made in the last ten years [190]. - Operating revenues for 2024 increased by $25.6 million to $191.9 million compared to 2023, driven by higher customer demand and rate increases [198]. - Operating income rose to $53.2 million in 2024, up from $39.2 million in 2023, reflecting a 35.7% increase [197]. - Net income for 2024 was $44.4 million, a significant increase of 40.8% from $31.6 million in 2023 [197]. Expenses and Costs - Operations and maintenance expenses increased by $9.2 million to $92.4 million in 2024, primarily due to higher labor and energy costs [198]. - Interest expense rose by $0.9 million to $14.0 million in 2024, attributed to higher average debt and interest rates [204]. - Other taxes increased by $3.1 million to $21.9 million in 2024, primarily due to higher gross receipts and payroll-related taxes [200]. - Other income, net increased by $5.6 million to $12.1 million in 2024, mainly due to recovery of costs related to PFAS treatment upgrades [203]. Customer Growth and Market Conditions - Organic residential customer growth in the Tidewater system is approximately 3.5% in 2024, contributing to the overall growth strategy [193]. - The Regulated segment contributed approximately 93% of total revenues for the years ended December 31, 2024, 2023, and 2022, indicating a stable revenue stream from regulated operations [195]. Financial Position and Risk Management - The company has $140 million in available lines of credit, with $23.0 million outstanding at a weighted average interest rate of 5.63% [226]. - The weighted average daily borrowings outstanding under credit lines were $38.7 million and $35.7 million at interest rates of 6.33% and 6.13% for the years ended December 31, 2024 and 2023, respectively [227]. - The total known contractual obligations as of December 31, 2024, amount to $724 million, with $359 million in long-term debt and $247 million in interest on long-term debt [245]. - The Company manages interest rate risk through fixed-rate long-term debt and has approximately $7.7 million of long-term debt instruments maturing in the next twelve months [261]. - The company has reduced risks associated with commodity price increases through contractual arrangements and the ability to recover price increases through rates [262]. - Credit risk exposure is present in both Regulated and Non-Regulated business segments, with a focus on customer default on contractual obligations [263]. - The credit portfolio is diversified with no significant customer or industry concentrations, and credit risk is managed through established credit and collection policies [263]. - The company's retirement benefit plan assets are exposed to market price variations, impacting retirement benefit plan expense and funded status [264]. - There were no material changes to primary market risk exposures in 2024, nor are any expected in the future [264]. Retirement and Benefits - The Company contributed $3.7 million to its retirement benefit plans in 2024 and expects to contribute approximately $1.8 million in 2025 [246]. - The discount rate for the Pension Plan is 5.47% and for the Other Benefits Plan is 5.49% as of December 31, 2024 [257]. - The Company raised approximately $1.0 million through the issuance of shares under the Investment Plan during 2024 [240].

Financial Performance - Middlesex reported net income of $44.4 million for 2024, a 40.7% increase from $31.5 million in 2023[2] - Diluted EPS for 2024 was $2.47, compared to $1.76 in 2023, reflecting a 40.4% increase[6] - Revenues for 2024 were $191.9 million, up $25.6 million or 15.4% from $166.3 million in 2023[5] - Fourth quarter net income was $8.8 million, a 51.7% increase from $5.8 million in the same quarter of 2023[8] Operating Expenses - Operating expenses increased to $92.4 million in 2024, a rise of 11.2% from $83.1 million in 2023[7] - Average diluted shares outstanding increased slightly from 17,847 in 2023 to 17,946 in 2024[17] Capital Investments - The company invested $75 million in capital expenditures in 2024 to enhance water and wastewater utility infrastructure[6] - Planned infrastructure investments from 2025 to 2027 total $387 million, including $105 million for PFAS treatment[10] Dividends - The company declared a first quarter cash dividend of $0.34 per common share, continuing a 52-year history of annual dividend increases[12] Acquisitions - The Delaware Public Service Commission approved Tidewater's acquisition of Ocean View water utility assets for approximately $4.6 million[11]

Core Insights - Middlesex Water Company has appointed Brian Hague as Vice President of Communications and Corporate Affairs to enhance internal and external communications, crisis management, government affairs, and community outreach [1][2][3] Company Overview - Middlesex Water Company, established in 1897, provides high-quality water services for residential, commercial, industrial, and fire protection purposes [3] - The company serves a population of approximately 500,000 people in New Jersey and Delaware through its subsidiaries [3] - Middlesex Water Company is committed to investing in its employees, infrastructure, and communities to support reliable utility services and economic growth [3] Leadership Appointment - Brian Hague brings over 20 years of communications experience from both public and private sectors, having held senior leadership roles in government and public relations [2] - His most recent role was Director of Government Affairs and Communications for the American Dream entertainment and retail destination in northern New Jersey [2] - The President and CEO of Middlesex Water Company, Nadine Leslie, expressed enthusiasm about Hague's appointment, highlighting his reputation and expected contributions to community engagement and brand enhancement [3]