CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - NYSE:CWT - US1307881029 - Common Stock
45.03 USD
-0.16 (-0.35%)
45.03 USD
0 (0%)
Overall CWT gets a fundamental rating of 4 out of 10. We evaluated CWT against 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CWT had positive earnings in the past year.
CWT had a positive operating cash flow in the past year.
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
CWT has a worse Return On Assets (2.52%) than 64.29% of its industry peers.
The Return On Equity of CWT (8.21%) is comparable to the rest of the industry.
CWT has a Return On Invested Capital of 3.26%. This is comparable 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 4.98%.
The last Return On Invested Capital (3.26%) for CWT is above the 3 year average (2.65%), which is a sign of increasing profitability.
| 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: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CWT has grown nicely.
The Gross Margin of CWT (70.17%) is better than 71.43% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWT is destroying value.
CWT has more shares outstanding than it did 1 year ago.
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 0.85. 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 (0.85) is worse than 64.29% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that CWT is somewhat dependend on debt financing.
The Debt to Equity ratio of CWT (0.88) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.43
WACC7.6%
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.
CWT has a worse Quick ratio (0.50) than 78.57% 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 -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.
Looking at the last year, CWT shows a small growth in Revenue. The Revenue has grown by 0.62% in the last 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
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.
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-24.53%
EPS Next 2Y-10.9%
EPS Next 3Y-6.11%
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.
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
Based on the Price/Earnings ratio of 19.66, the valuation of CWT can be described as rather expensive.
CWT's Price/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/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.35, which indicates a rather expensive current valuation of CWT.
71.43% of the companies in the same industry are more expensive than CWT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CWT to the average of the S&P500 Index (22.77), we can say CWT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWT is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
The decent profitability rating of CWT may justify a higher PE ratio.
A cheap valuation may be justified as CWT's earnings are expected to decrease with -6.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-10.9%
EPS Next 3Y-6.11%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.37, CWT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
On average, the dividend of CWT grows each year by 7.26%, which is quite nice.
CWT has paid a dividend for at least 10 years, which is 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-10.9%
EPS Next 3Y-6.11%
45.03
-0.16 (-0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.95%
Inst Owner Change-0.78%
Ins Owners0.64%
Ins Owner Change-0.41%
Market Cap2.68B
Analysts87.5
Price Target56.36 (25.16%)
Short Float %1.48%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)-0.27%
PT rev (3m)-3.07%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)4.42%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)2.29%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 17.35 | ||
| P/S | 2.71 | ||
| P/FCF | N/A | ||
| P/OCF | 10.43 | ||
| P/B | 1.62 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 10.93 |
EPS(TTM)2.29
EY5.09%
EPS(NY)2.6
Fwd EY5.76%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.59%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.98
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 | 0.85 |
F-Score5
WACC7.6%
ROIC/WACC0.43
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-24.53%
EPS Next 2Y-10.9%
EPS Next 3Y-6.11%
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 Year51.52%
EBIT Next 3Y24.08%
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%