📌 1. Executive Summary
- Company: Artesian Resources Corporation
- Ticker: ARTNA
- Industry: Utilities – Water and Wastewater Services
- Current Price: $34.34
- Investment Opinion: Hold
Artesian Resources is a regulated water utility company serving Delaware, Maryland, and Pennsylvania. It offers steady earnings, a consistent dividend policy, and recently received approval for a significant rate increase, providing upside in revenue. However, it remains a conservative income-focused investment.
🏢 2. Company Overview
- Business Model: Provides water and wastewater services to residential, commercial, and industrial customers
- Industry Position: One of the largest and oldest regulated water utilities in the Delmarva region
- Core Services: Public water supply, wastewater treatment, fire protection
- Management: CEO Nicholle R. Taylor leads the firm with a focus on infrastructure reliability and regulatory compliance
📊 3. Financial Analysis
- Revenue: Q1 2025 revenue of $25.88 million (year-over-year increase)
- Net Income: Q1 2025 net income of $5.43 million, up 23.2% year-over-year
- EPS: $0.53 (23.0% YoY increase)
- Balance Sheet:
- Total Assets: $809 million
- Equity: $242 million
- Long-Term Debt: $176 million
📈 4. Stock Performance
- 52-Week Range: $29.45 – $41.29
- Market Cap: ~$336 million
- Recent Trend: Up approximately 1.09% over the last month
💰 5. Valuation Analysis
- P/E Ratio: 15.71
- EPS (TTM): $2.08
- Analyst Price Target: Average of $46.00 → about 34% upside from current price
🌐 6. Industry & Market Analysis
- Trends: Rising demand for clean water and upgraded infrastructure driven by population growth and regulatory mandates
- Market Share: Holds ~⅓ of the regulated water service market in Delaware
- Macro Factors: Regulatory environment provides stability, though limits growth speed
⚠️ 7. Risk Analysis
- Market Risk: Sensitive to regulatory changes and interest rate movements
- Financial Risk: Increased capital expenditure may pressure short-term cash flow
- Operational Risk: Climate-related water resource issues could affect delivery reliability
🚀 8. Growth Catalysts
- Rate Increase: Approved in June 2024 by the Delaware Public Service Commission; expected to add ~$11.2 million in annual revenue
- Dividend Growth: Quarterly dividend increased by 2% in May 2025
- Ongoing Infrastructure Investment: Continuing upgrades to aging water/wastewater systems
🧠 9. Analyst Sentiment
- Consensus: Hold
- Price Target: $46.00
- Recent Outlook: Analysts appreciate its income stability but consider growth limited
✅ 10. Conclusion
Artesian Resources offers a stable and conservative investment option, ideal for income-focused investors. With regulated returns, rising dividends, and recent rate hikes, it provides downside protection but limited short-term upside. A Hold recommendation is appropriate unless growth accelerates.