CONSOLIDATED WATER CO-ORD SH (CWCO) Stock Fundamental Analysis
NASDAQ:CWCO - Nasdaq - KYG237731073 - Common Stock - Currency: USD
CWCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. CWCO has an excellent financial health rating, but there are some minor concerns on its profitability. CWCO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make CWCO a good candidate 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.
In the past 5 years CWCO has always been profitable.
CWCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CWCO has a Return On Assets of 10.60%. This is amongst the best in the industry. CWCO outperforms 92.86% of its industry peers.
The Return On Equity of CWCO (12.44%) is better than 85.71% of its industry peers.
The Return On Invested Capital of CWCO (5.94%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWCO is above the industry average of 5.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 12.44% | ||
| ROIC | 5.94% |
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 (20.73%) which is comparable to the rest of the industry.
CWCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.00%, CWCO is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CWCO has declined.
CWCO's Gross Margin of 34.42% is in line compared to the rest of the industry. CWCO outperforms 50.00% of its industry peers.
CWCO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 20.73% | ||
| GM | 34.42% |
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
CWCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CWCO has more shares outstanding than it did 1 year ago.
CWCO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.04 indicates that CWCO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.04, CWCO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
CWCO has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
CWCO has a better Debt to FCF ratio (0.00) than 100.00% of its industry peers.
CWCO has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
CWCO has a better Debt to Equity ratio (0.00) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.04 |
ROIC/WACC0.66
WACC8.99%
2.3 Liquidity
CWCO has a Current Ratio of 5.72. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.72, CWCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CWCO has a Quick Ratio of 5.47. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.47, CWCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.72 | ||
| Quick Ratio | 5.47 |
3. Growth
3.1 Past
The earnings per share for CWCO have decreased strongly by -54.85% in the last year.
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 -31.57% 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)-54.85%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)-31.57%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-15.05%
3.2 Future
CWCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.89% yearly.
Based on estimates for the next years, CWCO will show a very strong growth in Revenue. The Revenue will grow by 23.34% on average per year.
EPS Next Y-12.92%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.31%
Revenue Next 2Y23.34%
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
The Price/Earnings ratio is 33.65, which means the current valuation is very expensive for CWCO.
71.43% of the companies in the same industry are cheaper than CWCO, based on the Price/Earnings ratio.
CWCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.23, CWCO is valued on the expensive side.
64.29% of the companies in the same industry are more expensive than CWCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. CWCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
CWCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CWCO is more expensive than 71.43% of the companies 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 | 14.41 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
The decent profitability rating of CWCO may justify a higher PE ratio.
A more expensive valuation may be justified as CWCO's earnings are expected to grow with 23.89% in the coming years.
PEG (NY)N/A
PEG (5Y)2.4
EPS Next 2Y23.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWCO has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
CWCO's Dividend Yield is slightly below the industry average, which is at 3.44.
Compared to the average S&P500 Dividend Yield of 2.38, CWCO is paying slightly less dividend.
| 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.
Dividend Growth(5Y)3.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CWCO pays out 24.68% 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.
DP24.68%
EPS Next 2Y23.89%
EPS Next 3YN/A
31.29
+0.35 (+1.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.43%
Inst Owner Change6.75%
Ins Owners6.25%
Ins Owner Change2.63%
Market Cap498.14M
Analysts85
Price Target39.27 (25.5%)
Short Float %4.73%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.4
Dividend Growth(5Y)3.16%
DP24.68%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.84%
Min EPS beat(2)-68.49%
Max EPS beat(2)36.8%
EPS beat(4)2
Avg EPS beat(4)-12.27%
Min EPS beat(4)-68.49%
Max EPS beat(4)36.8%
EPS beat(8)6
Avg EPS beat(8)17.27%
EPS beat(12)7
Avg EPS beat(12)1.78%
EPS beat(16)9
Avg EPS beat(16)-16.54%
Revenue beat(2)1
Avg Revenue beat(2)-7.39%
Min Revenue beat(2)-17.11%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)-6.58%
Min Revenue beat(4)-17.11%
Max Revenue beat(4)3.11%
Revenue beat(8)6
Avg Revenue beat(8)7.7%
Revenue beat(12)10
Avg Revenue beat(12)7.66%
Revenue beat(16)12
Avg Revenue beat(16)6.18%
PT rev (1m)-1.28%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.03%
Revenue NY rev (1m)2.02%
Revenue NY rev (3m)-11.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 19.23 | ||
| P/S | 3.89 | ||
| P/FCF | 14.41 | ||
| P/OCF | 11.77 | ||
| P/B | 2.34 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 17.57 |
EPS(TTM)0.93
EY2.97%
EPS(NY)1.63
Fwd EY5.2%
FCF(TTM)2.17
FCFY6.94%
OCF(TTM)2.66
OCFY8.5%
SpS8.04
BVpS13.4
TBVpS12.43
PEG (NY)N/A
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 12.44% | ||
| ROCE | 6.93% | ||
| ROIC | 5.94% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 13.4% | ||
| OM | 12% | ||
| PM (TTM) | 20.73% | ||
| GM | 34.42% | ||
| FCFM | 27% |
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)15.32%
ROICexgc(5y)11.26%
ROCE(3y)10.95%
ROCE(5y)8.15%
ROICexcg growth 3Y56.02%
ROICexcg growth 5Y13.92%
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.12% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 190.49% | ||
| Profit Quality | 130.25% | ||
| Current Ratio | 5.72 | ||
| Quick Ratio | 5.47 | ||
| Altman-Z | 10.04 |
F-Score5
WACC8.99%
ROIC/WACC0.66
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)-54.85%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-30.23%
EPS Next Y-12.92%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.57%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-15.05%
Revenue Next Year-3.31%
Revenue Next 2Y23.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-61.58%
EBIT growth 3Y51.91%
EBIT growth 5Y9.92%
EBIT Next Year8.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y149.18%
FCF growth 3Y75.89%
FCF growth 5Y20.64%
OCF growth 1Y91.87%
OCF growth 3Y73.68%
OCF growth 5Y19.16%