CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
44.88 USD
+0.59 (+1.33%)
44.88 USD
0 (0%)
Taking everything into account, CWT scores 3 out of 10 in our fundamental rating. CWT was compared to 15 industry peers in the Water Utilities industry. CWT has a medium profitability rating, but doesn't score so well on its financial health evaluation. CWT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CWT had positive earnings in the past year.
In the past year CWT had a positive cash flow from operations.
In the past 5 years CWT has always been profitable.
In the past 5 years CWT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.52%, CWT is doing worse than 60.00% of the companies in the same industry.
With a Return On Equity value of 8.21%, CWT perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
With a Return On Invested Capital value of 3.26%, CWT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 4.77%.
The 3 year average ROIC (2.65%) for CWT is below the current ROIC(3.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 8.21% | ||
| ROIC | 3.26% |
ROA(3y)2.35%
ROA(5y)2.54%
ROE(3y)7.53%
ROE(5y)8.34%
ROIC(3y)2.65%
ROIC(5y)2.93%
1.3 Margins
Looking at the Profit Margin, with a value of 13.71%, CWT is in line with its industry, outperforming 46.67% of the companies in the same industry.
CWT's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 21.11%, CWT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
CWT's Operating Margin has improved in the last couple of years.
CWT has a better Gross Margin (70.17%) than 73.33% of its industry peers.
In the last couple of years the Gross Margin of CWT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.11% | ||
| PM (TTM) | 13.71% | ||
| GM | 70.17% |
OM growth 3Y15.39%
OM growth 5Y9.23%
PM growth 3Y12.91%
PM growth 5Y15.82%
GM growth 3Y2.57%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWT is destroying value.
The number of shares outstanding for CWT has been increased compared to 1 year ago.
CWT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that CWT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CWT (0.84) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that CWT is somewhat dependend on debt financing.
CWT has a better Debt to Equity ratio (0.88) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.44
WACC7.44%
2.3 Liquidity
CWT has a Current Ratio of 0.53. This is a bad value and indicates that CWT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.53, CWT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.50 indicates that CWT may have some problems paying its short term obligations.
CWT has a worse Quick ratio (0.50) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CWT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.82%.
Measured over the past years, CWT shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.08% on average per year.
CWT shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.48%.
CWT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
EPS 1Y (TTM)-33.82%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%0%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%3.9%
3.2 Future
Based on estimates for the next years, CWT will show a small growth in Earnings Per Share. The EPS will grow by 0.68% on average per year.
Based on estimates for the next years, CWT will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y-28.27%
EPS Next 2Y-10.69%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue Next Year-1.55%
Revenue Next 2Y2.82%
Revenue Next 3Y2.8%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CWT is valuated rather expensively with a Price/Earnings ratio of 19.60.
Based on the Price/Earnings ratio, CWT is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.46. CWT is valued slightly cheaper when compared to this.
CWT is valuated rather expensively with a Price/Forward Earnings ratio of 17.21.
CWT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWT is cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, CWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
86.67% 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 | 10.78 |
4.3 Compensation for Growth
CWT's earnings are expected to decrease with -5.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-10.69%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.64%.
CWT's Dividend Yield is comparable with the industry average which is at 3.47.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of CWT is nicely growing with an annual growth rate of 7.26%!
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)7.26%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CWT pays out 52.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
CWT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.43%
EPS Next 2Y-10.69%
EPS Next 3Y-5.53%
44.88
+0.59 (+1.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.79%
Inst Owner Change1.44%
Ins Owners0.64%
Ins Owner Change-0.41%
Market Cap2.67B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price Target52.7 (17.42%)
Short Float %2.08%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend1.12
Dividend Growth(5Y)7.26%
DP52.43%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.96%
Min EPS beat(2)25.08%
Max EPS beat(2)42.83%
EPS beat(4)3
Avg EPS beat(4)32.7%
Min EPS beat(4)-2.57%
Max EPS beat(4)65.43%
EPS beat(8)5
Avg EPS beat(8)32.34%
EPS beat(12)6
Avg EPS beat(12)-966.51%
EPS beat(16)7
Avg EPS beat(16)-731.07%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-6.26%
Max Revenue beat(2)7.75%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)7.75%
Revenue beat(8)6
Avg Revenue beat(8)5.45%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)8
Avg Revenue beat(16)-2.22%
PT rev (1m)-6.49%
PT rev (3m)-6.49%
EPS NQ rev (1m)-4.51%
EPS NQ rev (3m)-4.51%
EPS NY rev (1m)-3.73%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.21 | ||
| P/S | 2.7 | ||
| P/FCF | N/A | ||
| P/OCF | 10.39 | ||
| P/B | 1.62 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 10.78 |
EPS(TTM)2.29
EY5.1%
EPS(NY)2.61
Fwd EY5.81%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.62%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.98
Graham Number37.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 8.21% | ||
| ROCE | 4.44% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 3.31% | ||
| OM | 21.11% | ||
| PM (TTM) | 13.71% | ||
| GM | 70.17% | ||
| FCFM | N/A |
ROA(3y)2.35%
ROA(5y)2.54%
ROE(3y)7.53%
ROE(5y)8.34%
ROIC(3y)2.65%
ROIC(5y)2.93%
ROICexc(3y)2.68%
ROICexc(5y)2.97%
ROICexgc(3y)2.71%
ROICexgc(5y)3.01%
ROCE(3y)3.47%
ROCE(5y)3.91%
ROICexgc growth 3Y11.66%
ROICexgc growth 5Y6.46%
ROICexc growth 3Y11.75%
ROICexc growth 5Y6.29%
OM growth 3Y15.39%
OM growth 5Y9.23%
PM growth 3Y12.91%
PM growth 5Y15.82%
GM growth 3Y2.57%
GM growth 5Y1.83%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 346.39% | ||
| Cap/Sales | 49.05% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.84 |
F-Score5
WACC7.44%
ROIC/WACC0.44
Cap/Depr(3y)313.97%
Cap/Depr(5y)300.14%
Cap/Sales(3y)44.14%
Cap/Sales(5y)41.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.82%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%0%
EPS Next Y-28.27%
EPS Next 2Y-10.69%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%3.9%
Revenue Next Year-1.55%
Revenue Next 2Y2.82%
Revenue Next 3Y2.8%
Revenue Next 5Y4.01%
EBIT growth 1Y10.29%
EBIT growth 3Y26.29%
EBIT growth 5Y17.67%
EBIT Next Year54.16%
EBIT Next 3Y23.89%
EBIT Next 5Y18.3%
FCF growth 1Y-35.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.44%
OCF growth 3Y7.87%
OCF growth 5Y11.5%
CALIFORNIA WATER SERVICE GRP / CWT FAQ
What is the fundamental rating for CWT stock?
ChartMill assigns a fundamental rating of 3 / 10 to CWT.
What is the valuation status of CALIFORNIA WATER SERVICE GRP (CWT) stock?
ChartMill assigns a valuation rating of 3 / 10 to CALIFORNIA WATER SERVICE GRP (CWT). This can be considered as Overvalued.
How profitable is CALIFORNIA WATER SERVICE GRP (CWT) stock?
CALIFORNIA WATER SERVICE GRP (CWT) has a profitability rating of 5 / 10.
What is the valuation of CALIFORNIA WATER SERVICE GRP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CALIFORNIA WATER SERVICE GRP (CWT) is 19.6 and the Price/Book (PB) ratio is 1.62.
Can you provide the dividend sustainability for CWT stock?
The dividend rating of CALIFORNIA WATER SERVICE GRP (CWT) is 5 / 10 and the dividend payout ratio is 52.43%.