Artesian Resources Corp. (ARTNA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Select Water Solutions, Inc.

Consolidated Water Co. Ltd.

Artesian Resources Corp.

Essential Utilities, Inc.

American States Water Co.

Middlesex Water Co.

American Water Works Co., Inc.

SJW Group

Aris Water Solutions, Inc.

The York Water Co.

California Water Service Group

Why is Artesian Resources Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.08% and Operating profit at 4.35% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 38.03 MM
ROCE(HY) Highest at 9.43%
DIVIDEND PER SHARE(HY) Highest at USD 8.56

With ROCE of 8.24%, it has a fair valuation with a 1.19 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.44%, its profits have risen by 11.9% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 72.23%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.16% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.44% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Artesian Resources Corp. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Artesian Resources Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Artesian Resources Corp.

-4.5%

-0.28

20.34%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.08%

EBIT Growth (5y)

4.35%

EBIT to Interest (avg)

3.60

Debt to EBITDA (avg)

4.15

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.25

Tax Ratio

25.90%

Dividend Payout Ratio

55.57%

Pledged Shares

Institutional Holding

72.23%

ROCE (avg)

7.94%

ROE (avg)

9.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

14.48

EV to EBITDA

10.44

EV to Capital Employed

1.19

EV to Sales

4.57

PEG Ratio

1.25

Dividend Yield

3.50%

ROCE (Latest)

8.24%

ROE (Latest)

9.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 38.03 MM

ROCE(HY)

Highest at 9.43%

DIVIDEND PER SHARE(HY)

Highest at USD 8.56

RAW MATERIAL COST(Y)

Fallen by -2.2% (YoY

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 54.56%

Here's what is working for Artesian Resources Corp.

Operating Cash Flow

Highest at USD 38.03 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 8.56 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -2.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Artesian Resources Corp.

Dividend Payout Ratio

Lowest at 54.56%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)