CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
43.29 USD
+0.24 (+0.56%)
42.7 USD
-0.59 (-1.36%)
We assign a fundamental rating of 4 out of 10 to CWT. CWT was compared to 14 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CWT was profitable.
In the past year CWT had a positive cash flow from operations.
CWT had positive earnings in each of the past 5 years.
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 64.29% of the companies in the same industry.
With a Return On Equity value of 8.21%, CWT perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
CWT's Return On Invested Capital of 3.26% is in line compared to the rest of the industry. CWT outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWT is below the industry average of 4.89%.
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
The Profit Margin of CWT (13.71%) is comparable to the rest of the industry.
CWT's Profit Margin has improved in the last couple of years.
CWT has a Operating Margin of 21.11%. This is in the lower half of the industry: CWT underperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of CWT has grown nicely.
CWT has a better Gross Margin (70.17%) than 78.57% of its industry peers.
CWT's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, CWT has more shares outstanding
The number of shares outstanding for CWT has been increased compared to 5 years ago.
Compared to 1 year ago, CWT has an improved debt to assets ratio.
2.2 Solvency
CWT has an Altman-Z score of 0.83. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, CWT is doing worse than 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that CWT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, CWT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.45
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.53 indicates that CWT may have some problems paying its short term obligations.
CWT has a worse Current ratio (0.53) than 78.57% of its industry peers.
CWT has a Quick 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.
The Quick ratio of CWT (0.50) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for CWT have decreased strongly by -33.82% in the last year.
CWT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.08% yearly.
Looking at the last year, CWT shows a very strong growth in Revenue. The Revenue has grown by 30.48%.
Measured over the past years, CWT shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
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.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y-28.45%
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
EPS Next 5Y0.68%
Revenue Next Year-0.78%
Revenue Next 2Y2.77%
Revenue Next 3Y3.04%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CWT is valuated rather expensively with a Price/Earnings ratio of 18.90.
Based on the Price/Earnings ratio, CWT is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. CWT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.99 indicates a correct valuation of CWT.
CWT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWT is cheaper than 71.43% of the companies in the same industry.
CWT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
CWT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CWT's earnings are expected to decrease with -6.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.74%.
Compared to an average industry Dividend Yield of 2.93, CWT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, CWT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of CWT grows each year by 7.26%, which is quite nice.
CWT has been paying a dividend for at least 10 years, so it has a reliable track record.
CWT has not decreased their dividend for at least 10 years, which is a reliable track record.
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-11.72%
EPS Next 3Y-6.26%
43.29
+0.24 (+0.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.19%
Inst Owner Change1.44%
Ins Owners0.64%
Ins Owner Change-0.7%
Market Cap2.58B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price TargetN/A
Short Float %2.49%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)0%
EPS NQ rev (3m)-4.51%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.99 | ||
| P/S | 2.6 | ||
| P/FCF | N/A | ||
| P/OCF | 10.03 | ||
| P/B | 1.56 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)2.29
EY5.29%
EPS(NY)2.55
Fwd EY5.89%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.97%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.94
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 | 0.83 |
F-Score5
WACC7.3%
ROIC/WACC0.45
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-28.45%
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
EPS Next 5Y0.68%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%3.9%
Revenue Next Year-0.78%
Revenue Next 2Y2.77%
Revenue Next 3Y3.04%
Revenue Next 5Y4.01%
EBIT growth 1Y10.29%
EBIT growth 3Y26.29%
EBIT growth 5Y17.67%
EBIT Next Year53.99%
EBIT Next 3Y23.3%
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 4 / 10 to CWT.
What is the valuation status of CALIFORNIA WATER SERVICE GRP (CWT) stock?
ChartMill assigns a valuation rating of 4 / 10 to CALIFORNIA WATER SERVICE GRP (CWT). This can be considered as Fairly Valued.
How profitable is CALIFORNIA WATER SERVICE GRP (CWT) stock?
CALIFORNIA WATER SERVICE GRP (CWT) has a profitability rating of 6 / 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 18.9 and the Price/Book (PB) ratio is 1.56.
Can you provide the dividend sustainability for CWT stock?
The dividend rating of CALIFORNIA WATER SERVICE GRP (CWT) is 6 / 10 and the dividend payout ratio is 52.43%.