CONSOLIDATED WATER CO-ORD SH (CWCO) Stock Fundamental Analysis
NASDAQ:CWCO - Nasdaq - KYG237731073 - Common Stock - Currency: USD
Taking everything into account, CWCO scores 7 out of 10 in our fundamental rating. CWCO was compared to 14 industry peers in the Water Utilities industry. While CWCO has a great health rating, its profitability is only average at the moment. CWCO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes CWCO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
CWCO had positive earnings in the past year.
CWCO had a positive operating cash flow in the past year.
Each year in the past 5 years CWCO has been profitable.
CWCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.60%, CWCO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.44%, CWCO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.10%, CWCO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWCO is above the industry average of 5.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 13.44% | ||
| ROIC | 7.1% |
ROA(3y)9.39%
ROA(5y)6.14%
ROE(3y)10.97%
ROE(5y)7.15%
ROIC(3y)9.39%
ROIC(5y)6.99%
1.3 Margins
CWCO has a Profit Margin of 21.06%. This is comparable to the rest of the industry: CWCO outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of CWCO has grown nicely.
CWCO has a worse Operating Margin (13.50%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of CWCO has declined.
CWCO has a Gross Margin (34.06%) which is comparable to the rest of the industry.
CWCO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.5% | ||
| PM (TTM) | 21.06% | ||
| GM | 34.06% |
OM growth 3Y20.49%
OM growth 5Y-3.8%
PM growth 3Y153.94%
PM growth 5Y3.57%
GM growth 3Y-1.05%
GM growth 5Y-3.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CWCO is still creating some value.
Compared to 1 year ago, CWCO has more shares outstanding
Compared to 5 years ago, CWCO has more shares outstanding
Compared to 1 year ago, CWCO has an improved debt to assets ratio.
2.2 Solvency
CWCO has an Altman-Z score of 8.98. This indicates that CWCO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CWCO (8.98) is better than 92.86% of its industry peers.
CWCO has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.01, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CWCO has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, CWCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 8.98 |
ROIC/WACC0.79
WACC8.98%
2.3 Liquidity
A Current Ratio of 6.33 indicates that CWCO has no problem at all paying its short term obligations.
CWCO has a better Current ratio (6.33) than 100.00% of its industry peers.
CWCO has a Quick Ratio of 5.97. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.97, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.33 | ||
| Quick Ratio | 5.97 |
3. Growth
3.1 Past
CWCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.32%.
The Earnings Per Share has been growing by 14.02% on average over the past years. This is quite good.
The Revenue for CWCO has decreased by -25.66% in the past year. This is quite bad
CWCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.26% yearly.
EPS 1Y (TTM)-43.32%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)-25.66%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-46.65%
3.2 Future
CWCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.62% yearly.
The Revenue is expected to grow by 23.29% on average over the next years. This is a very strong growth
EPS Next Y-16.76%
EPS Next 2Y25.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.34%
Revenue Next 2Y23.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.86, the valuation of CWCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CWCO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CWCO is valued at the same level.
With a Price/Forward Earnings ratio of 27.46, CWCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWCO indicates a slightly more expensive valuation: CWCO is more expensive than 64.29% of the companies listed in the same industry.
CWCO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 27.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWCO indicates a somewhat cheap valuation: CWCO is cheaper than 78.57% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than CWCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 11.52 |
4.3 Compensation for Growth
The decent profitability rating of CWCO may justify a higher PE ratio.
CWCO's earnings are expected to grow with 25.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y25.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWCO has a Yearly Dividend Yield of 1.86%.
Compared to an average industry Dividend Yield of 3.37, CWCO is paying slightly less dividend.
CWCO's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of CWCO has a limited annual growth rate of 3.16%.
CWCO has paid a dividend for at least 10 years, which is a reliable track record.
CWCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.16%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
CWCO pays out 22.33% of its income as dividend. This is a sustainable payout ratio.
CWCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.33%
EPS Next 2Y25.62%
EPS Next 3YN/A
24.23
+0.4 (+1.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.6%
Inst Owner Change0%
Ins Owners6.01%
Ins Owner Change3.55%
Market Cap384.53M
Analysts85
Price Target39.27 (62.07%)
Short Float %4.1%
Short Ratio7.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.4
Dividend Growth(5Y)3.16%
DP22.33%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.42%
Min EPS beat(2)-68.49%
Max EPS beat(2)7.65%
EPS beat(4)2
Avg EPS beat(4)-19.09%
Min EPS beat(4)-68.49%
Max EPS beat(4)9.5%
EPS beat(8)6
Avg EPS beat(8)15.25%
EPS beat(12)7
Avg EPS beat(12)0.95%
EPS beat(16)9
Avg EPS beat(16)-16.92%
Revenue beat(2)1
Avg Revenue beat(2)-7%
Min Revenue beat(2)-17.11%
Max Revenue beat(2)3.11%
Revenue beat(4)2
Avg Revenue beat(4)-6.69%
Min Revenue beat(4)-17.11%
Max Revenue beat(4)3.11%
Revenue beat(8)6
Avg Revenue beat(8)9.17%
Revenue beat(12)10
Avg Revenue beat(12)8.48%
Revenue beat(16)11
Avg Revenue beat(16)5.46%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-34.85%
EPS NQ rev (3m)-34.85%
EPS NY rev (1m)-38.21%
EPS NY rev (3m)-38.21%
Revenue NQ rev (1m)-6.78%
Revenue NQ rev (3m)-6.78%
Revenue NY rev (1m)-13.81%
Revenue NY rev (3m)-13.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 27.46 | ||
| P/S | 2.87 | ||
| P/FCF | 12.9 | ||
| P/OCF | 10.53 | ||
| P/B | 1.83 | ||
| P/tB | 2 | ||
| EV/EBITDA | 11.52 |
EPS(TTM)1.06
EY4.37%
EPS(NY)0.88
Fwd EY3.64%
FCF(TTM)1.88
FCFY7.75%
OCF(TTM)2.3
OCFY9.5%
SpS8.44
BVpS13.23
TBVpS12.11
PEG (NY)N/A
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 13.44% | ||
| ROCE | 8.28% | ||
| ROIC | 7.1% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 15.32% | ||
| OM | 13.5% | ||
| PM (TTM) | 21.06% | ||
| GM | 34.06% | ||
| FCFM | 22.26% |
ROA(3y)9.39%
ROA(5y)6.14%
ROE(3y)10.97%
ROE(5y)7.15%
ROIC(3y)9.39%
ROIC(5y)6.99%
ROICexc(3y)13.56%
ROICexc(5y)9.95%
ROICexgc(3y)15.43%
ROICexgc(5y)11.33%
ROCE(3y)10.95%
ROCE(5y)8.15%
ROICexcg growth 3Y57.14%
ROICexcg growth 5Y14.41%
ROICexc growth 3Y54.78%
ROICexc growth 5Y13.87%
OM growth 3Y20.49%
OM growth 5Y-3.8%
PM growth 3Y153.94%
PM growth 5Y3.57%
GM growth 3Y-1.05%
GM growth 5Y-3.69%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 100.07% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 2127.88 | ||
| Cash Conversion | 147.37% | ||
| Profit Quality | 105.67% | ||
| Current Ratio | 6.33 | ||
| Quick Ratio | 5.97 | ||
| Altman-Z | 8.98 |
F-Score5
WACC8.98%
ROIC/WACC0.79
Cap/Depr(3y)99.55%
Cap/Depr(5y)68.7%
Cap/Sales(3y)5.27%
Cap/Sales(5y)4.08%
Profit Quality(3y)117.23%
Profit Quality(5y)282.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-43.32%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-85.71%
EPS Next Y-16.76%
EPS Next 2Y25.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-25.66%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-46.65%
Revenue Next Year-6.34%
Revenue Next 2Y23.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-51.34%
EBIT growth 3Y51.91%
EBIT growth 5Y9.92%
EBIT Next Year3.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y920.19%
FCF growth 3Y75.89%
FCF growth 5Y20.64%
OCF growth 1Y358.12%
OCF growth 3Y73.68%
OCF growth 5Y19.16%