We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons to Add Artesian Resources (ARTNA) to Your Portfolio
Read MoreHide Full Article
Artesian Resources Corporation (ARTNA - Free Report) and its subsidiaries provide water and wastewater services to its customers. The company supplies 8.7 billion gallons of water per year through 1,442 miles of transmission and distribution mains to its customers. Its strong dividend payment history and rising earnings estimates make it a solid candidate for adding to your portfolio.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $1.75, implying an increase of 0.6% in the past 60 days.
The Zacks Consensus Estimate for 2023 revenues is pinned at $101 million, implying a year-over-year increase of 2.1%.
The company delivered an average earnings surprise of 3% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, Artesian Resources’ ROE is 8.39%, higher than the sector’s average of 6.07%. This indicates that the company has been utilizing funds more constructively than its peers in the utility sector.
Debt and Solvency
Artesian Resources’ debt to capital at the end of second-quarter 2023 was 43.9% compared with its industry’s average of 48.17%. This means that the company is utilizing less debt to fund its operations in comparison to its peers in the industry. Lower dependence on debt amid rising interest rates reduces the capital servicing costs of the company.
At the end of second-quarter 2023, the company’s times interest earned ratio was 2.8. A ratio greater than 1 indicates the company has ample financial strength to meet its interest obligations.
Dividend Growth
Artesian Resources has been consistently paying dividends to its shareholders. The last quarterly dividend paid in August 2023 marked the company’s 123rd consecutive quarterly dividend paid to shareholders. The company raised its quarterly dividend by 2% in the first half of 2023.
The current annualized dividend rate is $1.136 per share and the current dividend yield is 2.51%, better than the industry’s 2.1%.
Price Performance
In the last 2 years, the stock gained 15.3% against the industry’s 12% decline.
AWK’s long-term (three- to five-year) earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 EPS is pegged at $4.80, indicating a year-over-year improvement of 6.4%.
AWR’s long-term earnings growth rate is 6.3%. The consensus mark for 2023 EPS is pinned at $2.96, indicating year-over-year growth of 29.8%.
The consensus estimate for SJW’s 2023 EPS is pegged at $2.47, implying a year-over-year increase of 2.1%. The company delivered an average earnings surprise of 21% in the last four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
4 Reasons to Add Artesian Resources (ARTNA) to Your Portfolio
Artesian Resources Corporation (ARTNA - Free Report) and its subsidiaries provide water and wastewater services to its customers. The company supplies 8.7 billion gallons of water per year through 1,442 miles of transmission and distribution mains to its customers. Its strong dividend payment history and rising earnings estimates make it a solid candidate for adding to your portfolio.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $1.75, implying an increase of 0.6% in the past 60 days.
The Zacks Consensus Estimate for 2023 revenues is pinned at $101 million, implying a year-over-year increase of 2.1%.
The company delivered an average earnings surprise of 3% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, Artesian Resources’ ROE is 8.39%, higher than the sector’s average of 6.07%. This indicates that the company has been utilizing funds more constructively than its peers in the utility sector.
Debt and Solvency
Artesian Resources’ debt to capital at the end of second-quarter 2023 was 43.9% compared with its industry’s average of 48.17%. This means that the company is utilizing less debt to fund its operations in comparison to its peers in the industry. Lower dependence on debt amid rising interest rates reduces the capital servicing costs of the company.
At the end of second-quarter 2023, the company’s times interest earned ratio was 2.8. A ratio greater than 1 indicates the company has ample financial strength to meet its interest obligations.
Dividend Growth
Artesian Resources has been consistently paying dividends to its shareholders. The last quarterly dividend paid in August 2023 marked the company’s 123rd consecutive quarterly dividend paid to shareholders. The company raised its quarterly dividend by 2% in the first half of 2023.
The current annualized dividend rate is $1.136 per share and the current dividend yield is 2.51%, better than the industry’s 2.1%.
Price Performance
In the last 2 years, the stock gained 15.3% against the industry’s 12% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are American Water Works (AWK - Free Report) , American States Water (AWR - Free Report) and SJW Group (SJW - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AWK’s long-term (three- to five-year) earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 EPS is pegged at $4.80, indicating a year-over-year improvement of 6.4%.
AWR’s long-term earnings growth rate is 6.3%. The consensus mark for 2023 EPS is pinned at $2.96, indicating year-over-year growth of 29.8%.
The consensus estimate for SJW’s 2023 EPS is pegged at $2.47, implying a year-over-year increase of 2.1%. The company delivered an average earnings surprise of 21% in the last four quarters.