CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
NYSE:CWT - New York Stock Exchange, Inc. - US1307881029 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CWT. CWT was compared to 14 industry peers in the Water Utilities industry. While CWT is still in line with the averages on profitability rating, there are concerns on its financial health. CWT has a decent growth rate and is not valued too expensively. CWT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CWT was profitable.
CWT had a positive operating cash flow in the past year.
In the past 5 years CWT has always been profitable.
CWT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.01%, CWT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CWT has a Return On Equity of 12.36%. This is in the better half of the industry: CWT outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.57%, CWT is in line with its industry, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 5.70%.
The 3 year average ROIC (2.23%) for CWT is below the current ROIC(3.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 12.36% | ||
| ROIC | 3.57% |
ROA(3y)2.06%
ROA(5y)2.21%
ROE(3y)6.5%
ROE(5y)7.62%
ROIC(3y)2.23%
ROIC(5y)2.7%
1.3 Margins
CWT has a Profit Margin (19.56%) which is in line with its industry peers.
CWT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 20.68%, CWT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
CWT's Operating Margin has declined in the last couple of years.
The Gross Margin of CWT (72.00%) is better than 78.57% of its industry peers.
CWT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.68% | ||
| PM (TTM) | 19.56% | ||
| GM | 72% |
OM growth 3Y-25.22%
OM growth 5Y-15.86%
PM growth 3Y-18.77%
PM growth 5Y-7.01%
GM growth 3Y-0.33%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
CWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWT has more shares outstanding
CWT has more shares outstanding than it did 5 years ago.
CWT has a worse debt/assets ratio than last year.
2.2 Solvency
CWT has an Altman-Z score of 0.95. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
CWT has a Altman-Z score of 0.95. This is comparable to the rest of the industry: CWT outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that CWT is somewhat dependend on debt financing.
CWT has a Debt to Equity ratio of 0.81. This is in the better half of the industry: CWT outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.48
WACC7.5%
2.3 Liquidity
CWT has a Current Ratio of 0.64. This is a bad value and indicates that CWT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CWT (0.64) is worse than 78.57% of its industry peers.
A Quick Ratio of 0.60 indicates that CWT may have some problems paying its short term obligations.
CWT's Quick ratio of 0.60 is on the low side compared to the rest of the industry. CWT is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 380.56%, which is quite impressive.
The Earnings Per Share has been decreasing by -6.72% on average over the past years.
The Revenue has grown by 31.76% in the past year. This is a very strong growth!
CWT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.62% yearly.
EPS 1Y (TTM)380.56%
EPS 3Y-22.87%
EPS 5Y-6.72%
EPS Q2Q%71.67%
Revenue 1Y (TTM)31.76%
Revenue growth 3Y0.01%
Revenue growth 5Y2.62%
Sales Q2Q%17.49%
3.2 Future
Based on estimates for the next years, CWT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.61% on average per year.
CWT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y258.04%
EPS Next 2Y63.31%
EPS Next 3Y41.57%
EPS Next 5Y28.61%
Revenue Next Year17.11%
Revenue Next 2Y6.53%
Revenue Next 3Y5.64%
Revenue Next 5Y5.65%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.89, CWT is valued correctly.
CWT's Price/Earnings ratio is rather cheap when compared to the industry. CWT is cheaper than 92.86% of the companies in the same industry.
CWT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 18.79 indicates a rather expensive valuation of CWT.
Based on the Price/Forward Earnings ratio, CWT is valued a bit cheaper than 64.29% of the companies in the same industry.
CWT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than CWT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CWT's earnings are expected to grow with 41.57% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y63.31%
EPS Next 3Y41.57%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.58%.
CWT's Dividend Yield is comparable with the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.27, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of CWT grows each year by 6.82%, which is quite nice.
CWT has paid a dividend for at least 10 years, which is a reliable track record.
CWT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.82%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CWT pays out 31.70% of its income as dividend. This is a sustainable payout ratio.
CWT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.7%
EPS Next 2Y63.31%
EPS Next 3Y41.57%
CALIFORNIA WATER SERVICE GRP
NYSE:CWT (1/29/2025, 8:16:23 PM)
After market: 44.59 0 (0%)44.59
-0.68 (-1.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.72%
Inst Owner Change-0.5%
Ins Owners0.56%
Ins Owner Change-1.02%
Market Cap2.65B
Analysts82.22
Price Target58.14 (30.39%)
Short Float %1.31%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend1.04
Dividend Growth(5Y)6.82%
DP31.7%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)31.22%
Min EPS beat(2)-2.57%
Max EPS beat(2)65.02%
EPS beat(4)2
Avg EPS beat(4)36.13%
Min EPS beat(4)-58.48%
Max EPS beat(4)140.57%
EPS beat(8)3
Avg EPS beat(8)-1465.55%
EPS beat(12)3
Avg EPS beat(12)-989.11%
EPS beat(16)5
Avg EPS beat(16)-752.34%
Revenue beat(2)2
Avg Revenue beat(2)7.14%
Min Revenue beat(2)2.43%
Max Revenue beat(2)11.85%
Revenue beat(4)3
Avg Revenue beat(4)9.43%
Min Revenue beat(4)-22.37%
Max Revenue beat(4)45.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)-1.22%
Revenue beat(16)9
Avg Revenue beat(16)5.24%
PT rev (1m)-1.72%
PT rev (3m)-3.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 18.79 | ||
| P/S | 2.58 | ||
| P/FCF | N/A | ||
| P/OCF | 8.93 | ||
| P/B | 1.63 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)3.46
EY7.76%
EPS(NY)2.37
Fwd EY5.32%
FCF(TTM)-2.43
FCFYN/A
OCF(TTM)5
OCFY11.2%
SpS17.3
BVpS27.39
TBVpS26.76
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 12.36% | ||
| ROCE | 4.79% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 3.65% | ||
| OM | 20.68% | ||
| PM (TTM) | 19.56% | ||
| GM | 72% | ||
| FCFM | N/A |
ROA(3y)2.06%
ROA(5y)2.21%
ROE(3y)6.5%
ROE(5y)7.62%
ROIC(3y)2.23%
ROIC(5y)2.7%
ROICexc(3y)2.27%
ROICexc(5y)2.74%
ROICexgc(3y)2.3%
ROICexgc(5y)2.78%
ROCE(3y)2.88%
ROCE(5y)3.62%
ROICexcg growth 3Y-32.76%
ROICexcg growth 5Y-22.22%
ROICexc growth 3Y-32.75%
ROICexc growth 5Y-22.34%
OM growth 3Y-25.22%
OM growth 5Y-15.86%
PM growth 3Y-18.77%
PM growth 5Y-7.01%
GM growth 3Y-0.33%
GM growth 5Y0.06%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 333.34% | ||
| Cap/Sales | 42.93% | ||
| Interest Coverage | 3.85 | ||
| Cash Conversion | 86.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.95 |
F-Score7
WACC7.5%
ROIC/WACC0.48
Cap/Depr(3y)284.57%
Cap/Depr(5y)289.93%
Cap/Sales(3y)41.36%
Cap/Sales(5y)40%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)380.56%
EPS 3Y-22.87%
EPS 5Y-6.72%
EPS Q2Q%71.67%
EPS Next Y258.04%
EPS Next 2Y63.31%
EPS Next 3Y41.57%
EPS Next 5Y28.61%
Revenue 1Y (TTM)31.76%
Revenue growth 3Y0.01%
Revenue growth 5Y2.62%
Sales Q2Q%17.49%
Revenue Next Year17.11%
Revenue Next 2Y6.53%
Revenue Next 3Y5.64%
Revenue Next 5Y5.65%
EBIT growth 1Y197.92%
EBIT growth 3Y-25.21%
EBIT growth 5Y-13.66%
EBIT Next Year124.3%
EBIT Next 3Y33.85%
EBIT Next 5Y24.16%
FCF growth 1Y-162.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.71%
OCF growth 3Y22.7%
OCF growth 5Y4%