The Prudent Investor

A Quick Look at Artesian Resources
January 22, 2007, 7:59 am
Filed under: Water Utilities

The last company on the list is Artesian Resources (NASDAQ:ARTNA), with a market cap of $117 Million.

Yahoo Finance offers the following description:

Artesian Resources Corporation, through its subsidiaries, engages in the distribution and sale of water to residential, commercial, industrial, governmental, municipal, and utility customers in the state of Delaware. It also provides water for public and private fire protection to customers in its service territories, as well as offers wastewater services. As of December 31, 2005, the company had 107 operating and 62 monitoring wells in its systems, as well as owned and maintained approximately 1,000 miles of water main throughout the state. It also had approximately 72,400 metered customers and served a population of approximately 239,000 residents, as of above date.

With a current price of $18.71, the company exhibits a comparitively excellent P/E of 19.2. The PEG of 2.9 is the second best in the comparison group, as is its P/S of 2.4. Quarterly Revenue Growth is a major nagative at only 4%, and the other major negative is the D/E at 1.7. Countering these is an excellent Dividend Yield of 3.4%.

The 2006 chart shows the price start just below $20, spiking quickly up to $22, then falling and bouncing between $18.50 and $19.50.

This is a hard call since the numbers are both positive and negative. I believe that these warrant further examination, so the company will be held for now for further consideration.

Looking forward, I will reexamine the companies that are left in the consideration field. There are some numbers that concern me, and I will look again to decide whether I am fretting over something unessential, or if the company should be tossed because of my discomfort.


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