MeritValue

ARTESIAN RESOURCES CORP

ARTNAdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'

The thesis, from the filings

ARTESIAN RESOURCES CORP earns about 9% on equity, but has diluted owners by 9% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $18.01 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$90.9M1$98.9M2$98.9M3$108M3$112.9M3
Net income$16.8M4$18M5$16.7M6$20.4M6$22.8M6
Operating cash flow$31.3M7$24.3M8$31.9M9$36.8M9$40.3M9
Capital expenditure$40.8M10$48.5M11$62.2M12$45.9M12$58.8M12
Free cash flow (derived)−$9.5M7−$24.2M8−$30.3M9−$9.12M9−$18.5M9
Total debt$289.7M13$355.2M14$361.1M15$357.4M16$352.8M16
Cash & equivalents$92,00017$1.31M18$2.51M19$1.15M20$52,00020
Diluted shares9.4M9.5M10.0M10.3M10.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$242.36
your share of equity
Profit it earned you last year
$22.13
Free cash flow it threw off
−$17.94
Debt you’d be carrying
$342.14

10 shares is a claim on $242.36 of net worth that earned you $22.13 and generated −$17.94 of cash last year, against $342.14 of debt.

iii. Is this a good business?
Moat signal · return on equity
9% avg · 5y
FY21 9%FY22 10%FY23 7%FY24 9%FY25 9%

It earned an average 9% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+9% shares · 5y

Share count is up 9% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 22% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$18.01
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$18M
  • growthAssumed0.0%
Graham Number
$34.72
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000863110-24-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000863110-25-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000863110-26-000025 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000863110-24-000011 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000863110-25-000020 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000863110-26-000025 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000863110-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000863110-25-000020 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000863110-26-000025 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000863110-24-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000863110-25-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000863110-26-000025 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000863110-23-000004 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000863110-24-000011 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000863110-25-000020 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0000863110-26-000025 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000863110-23-000004 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000863110-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000863110-25-000020 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000863110-26-000025 (CashAndCashEquivalentsAtCarryingValue)