CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
44.69 USD
-0.98 (-2.15%)
44.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CWT. CWT was compared to 14 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CWT was profitable.
- CWT had a positive operating cash flow in the past year.
- 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
- CWT's Return On Assets of 2.52% is on the low side compared to the rest of the industry. CWT is outperformed by 64.29% of its industry peers.
- CWT has a Return On Equity (8.21%) which is comparable to the rest of the industry.
- The Return On Invested Capital of CWT (3.26%) is comparable to the rest of the industry.
- CWT had an Average Return On Invested Capital over the past 3 years of 2.65%. This is below the industry average of 4.99%.
- 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's Profit Margin of 13.71% is in line compared to the rest of the industry. CWT outperforms 42.86% of its industry peers.
- CWT's Profit Margin has improved in the last couple of years.
- CWT's Operating Margin of 21.11% is on the low side compared to the rest of the industry. CWT is outperformed by 64.29% of its industry peers.
- CWT's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 70.17%, CWT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- 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
- 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
- CWT has more shares outstanding than it did 5 years ago.
- CWT has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.85, we must say that CWT is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.85, CWT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.88 indicates that CWT is somewhat dependend on debt financing.
- CWT's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. CWT outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.4
WACC8.21%
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.
- CWT's Current ratio of 0.53 is on the low side compared to the rest of the industry. CWT is outperformed by 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.
- Looking at the Quick ratio, with a value of 0.50, CWT is doing worse than 71.43% 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 -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.
- The Revenue has grown by 30.48% in the past year. This is a very strong growth!
- The Revenue has been growing slightly by 7.73% on average over the past years.
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
- CWT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.68% yearly.
- CWT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
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
- 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.
- 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
- A Price/Earnings ratio of 19.52 indicates a rather expensive valuation of CWT.
- Based on the Price/Earnings ratio, CWT is valued a bit cheaper than 71.43% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CWT to the average of the S&P500 Index (26.94), we can say CWT is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.54, the valuation of CWT can be described as rather expensive.
- 71.43% of the companies in the same industry are more expensive than CWT, based on the Price/Forward Earnings ratio.
- CWT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
- 85.71% 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 | 11.01 |
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)0.97
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.60%, CWT has a reasonable but not impressive dividend return.
- CWT's Dividend Yield is comparable with the industry average which is at 2.91.
- CWT's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- The dividend of CWT is nicely growing with an annual growth rate of 7.26%!
- 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
- 52.43% of the earnings are spent on dividend by CWT. 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-11.72%
EPS Next 3Y-6.26%
44.69
-0.98 (-2.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners92.26%
Inst Owner Change0.01%
Ins Owners0.63%
Ins Owner Change-0.8%
Market Cap2.66B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price Target52.7 (17.92%)
Short Float %1.63%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend1.12
Dividend Growth(5Y)7.26%
DP52.43%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-6.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 17.54 | ||
| P/S | 2.69 | ||
| P/FCF | N/A | ||
| P/OCF | 10.35 | ||
| P/B | 1.61 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)2.29
EY5.12%
EPS(NY)2.55
Fwd EY5.7%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.66%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.97
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 | 0.85 |
F-Score5
WACC8.21%
ROIC/WACC0.4
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 for 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 expected EPS growth for CALIFORNIA WATER SERVICE GRP (CWT) stock?
The Earnings per Share (EPS) of CALIFORNIA WATER SERVICE GRP (CWT) is expected to decline by -28.45% in the next year.
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%.