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EDN vs MSEX

EDN
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima
NEUTRAL
Price
$25.33
Market Cap
$1.21B
Sector
Utilities
AI Confidence
80%
MSEX
Middlesex Water Company
BEARISH
Price
$51.86
Market Cap
$963.6M
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
EDN
6.38
MSEX
21.97
Forward P/E
EDN
745.0
MSEX
17.23
P/B Ratio
EDN
0.68
MSEX
1.94
P/S Ratio
EDN
0.0
MSEX
4.95
EV/EBITDA
EDN
1.11
MSEX
15.04

Profitability

Gross Margin
EDN
22.75%
MSEX
53.11%
Operating Margin
EDN
5.25%
MSEX
26.33%
Profit Margin
EDN
8.0%
MSEX
22.0%
ROE
EDN
11.38%
MSEX
9.09%
ROA
EDN
1.7%
MSEX
2.82%

Growth

Revenue Growth
EDN
5.6%
MSEX
-0.3%
Earnings Growth
EDN
858.4%
MSEX
-4.7%

Financial Health

Debt/Equity
EDN
0.54
MSEX
0.84
Current Ratio
EDN
1.07
MSEX
0.45
Quick Ratio
EDN
0.9
MSEX
0.33

Dividends

Dividend Yield
EDN
--
MSEX
2.7%
Payout Ratio
EDN
0.0%
MSEX
58.47%

AI Verdict

EDN NEUTRAL

EDN presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 and a bearish technical trend (0/100). While the stock is significantly undervalued relative to its Graham Number ($57.62) and Intrinsic Value ($117.12), the financial health is deteriorating. The most alarming metric is the Forward P/E of 745.00, suggesting a projected collapse in earnings. Despite strong ROE and low debt relative to the utilities sector, the extreme volatility in quarterly earnings surprises indicates low-quality earnings that undermine the deep-value thesis.

Strengths
Deeply undervalued P/E (6.38) relative to sector average (27.62)
Trading below book value (P/B 0.68)
Debt/Equity (0.54) is significantly lower than the sector average (1.62)
Risks
Weak financial health indicated by Piotroski F-Score of 3/9
Extreme Forward P/E (745.00) signaling a sharp expected earnings decline
Severe technical bearishness (0/100 trend score)
MSEX BEARISH

MSEX exhibits a stable but stagnant financial profile with a Piotroski F-Score of 5/9, yet it is fundamentally overvalued. The current price of $51.86 trades at a significant premium to both the Graham Number ($37.63) and the growth-based Intrinsic Value ($16.52). Negative revenue and earnings growth, coupled with a consistent track record of missing quarterly estimates (0/4 in the last year), suggest a lack of operational momentum. Severe liquidity constraints, evidenced by a current ratio of 0.45, further heighten the risk profile.

Strengths
Strong profit margins (22%) and operating margins (26.33%)
Sustainable dividend payout ratio of 58.47%
Stable Piotroski F-Score (5/9) indicating baseline financial health
Risks
Severe liquidity risk with a Current Ratio of 0.45 and Quick Ratio of 0.33
Consistent earnings misses (Average surprise -9.75% over last 4 quarters)
Negative growth trajectory in both revenue (-0.30%) and earnings (-4.70%)

Compare Another Pair

EDN vs MSEX: Head-to-Head Comparison

This page compares Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) and Middlesex Water Company (MSEX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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