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4 Reasons to Add Artesian Resources (ARTNA) to Your Portfolio
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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.
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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.
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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.