CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - NYSE:CWT - US1307881029 - Common Stock
49.53 USD
-0.13 (-0.26%)
49.53 USD
0 (0%)
CWT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 15 industry peers in the Water Utilities industry. There are concerns on the financial health of CWT while its profitability can be described as average. CWT does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years CWT has been profitable.
CWT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.52%, CWT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
CWT has a Return On Equity of 8.21%. This is comparable to the rest of the industry: CWT outperforms 46.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.26%, CWT is doing worse than 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CWT is below the industry average of 4.85%.
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
CWT has a Profit Margin (13.71%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CWT has grown nicely.
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.
In the last couple of years the Operating Margin of CWT has grown nicely.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWT is destroying value.
Compared to 1 year ago, CWT has more shares outstanding
Compared to 5 years ago, CWT has more shares outstanding
CWT has a better debt/assets ratio than last year.
2.2 Solvency
CWT has an Altman-Z score of 0.89. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CWT (0.89) is worse than 60.00% of its industry peers.
CWT has a Debt/Equity ratio of 0.88. This is a neutral value indicating 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 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.39
WACC8.41%
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.
The Current ratio of CWT (0.53) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.50 indicates that CWT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, CWT is doing worse than 80.00% of the companies in the same industry.
| 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 -24.42% in the last year.
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.
The Revenue has been growing slightly by 0.62% in the past year.
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)-24.42%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%1.43%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%8.45%
3.2 Future
The Earnings Per Share is expected to grow by 0.68% on average over the next years.
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-25.49%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue Next Year-0.39%
Revenue Next 2Y2.87%
Revenue Next 3Y2.55%
Revenue Next 5Y4.01%
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 decreasing.
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
With a Price/Earnings ratio of 21.63, CWT is valued on the expensive side.
66.67% of the companies in the same industry are more expensive than CWT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CWT to the average of the S&P500 Index (27.77), we can say CWT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.08, CWT is valued on the expensive side.
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 23.23, CWT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWT is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.67 |
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)1.08
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.48%.
Compared to an average industry Dividend Yield of 3.17, CWT has a dividend in line with its industry peers.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 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.
The dividend of CWT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.43%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
49.53
-0.13 (-0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.79%
Inst Owner Change-0.04%
Ins Owners0.64%
Ins Owner Change-0.41%
Market Cap2.95B
Analysts87.5
Price Target56.36 (13.79%)
Short Float %1.56%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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)0%
PT rev (3m)-3.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 19.08 | ||
| P/S | 2.98 | ||
| P/FCF | N/A | ||
| P/OCF | 11.47 | ||
| P/B | 1.78 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)2.29
EY4.62%
EPS(NY)2.6
Fwd EY5.24%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY8.72%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)1.08
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%
ROICexcg growth 3Y11.66%
ROICexcg 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 | 0.89 |
F-Score5
WACC8.41%
ROIC/WACC0.39
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)-24.42%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%1.43%
EPS Next Y-25.49%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%8.45%
Revenue Next Year-0.39%
Revenue Next 2Y2.87%
Revenue Next 3Y2.55%
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%