CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
45.37 USD
-0.13 (-0.29%)
45.37 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. While CWT is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
CWT had a positive operating cash flow in the past year.
Each year in the past 5 years CWT has been profitable.
Each year in the past 5 years CWT had a positive operating cash flow.
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 (8.21%) which is in line with its industry peers.
The Return On Invested Capital of CWT (3.26%) is worse than 60.00% of its industry peers.
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
CWT has a Profit Margin (13.71%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CWT has grown nicely.
CWT has a worse Operating Margin (21.11%) than 60.00% 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 73.33% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWT is destroying value.
CWT has more shares outstanding than it did 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 0.85, we must say that CWT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CWT (0.85) 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 Debt to Equity ratio of 0.88. This is in the better half of the industry: CWT outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.42
WACC7.66%
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.
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 Quick ratio of 0.50. This is in the lower half of the industry: CWT underperforms 73.33% 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.
The Earnings Per Share has been growing by 20.08% on average over the past years. This is a very strong growth
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
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-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
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
A Price/Earnings ratio of 19.81 indicates a rather expensive valuation of CWT.
CWT's Price/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/Earnings ratio of 26.31, CWT is valued a bit cheaper.
CWT is valuated rather expensively with a Price/Forward Earnings ratio of 17.39.
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.
When comparing the Price/Forward Earnings ratio of CWT to the average of the S&P500 Index (36.59), we can say CWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 17.39 |
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 | 10.98 |
4.3 Compensation for Growth
A cheap valuation may be justified as CWT's earnings are expected to decrease with -5.53% in the coming years.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-10.69%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
CWT's Dividend Yield is comparable with the industry average which is at 3.52.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
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-10.69%
EPS Next 3Y-5.53%
45.37
-0.13 (-0.29%)
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 Cap2.70B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price Target52.7 (16.16%)
Short Float %1.95%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 | 19.81 | ||
| Fwd PE | 17.39 | ||
| P/S | 2.73 | ||
| P/FCF | N/A | ||
| P/OCF | 10.51 | ||
| P/B | 1.63 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 10.98 |
EPS(TTM)2.29
EY5.05%
EPS(NY)2.61
Fwd EY5.75%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.52%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.99
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
WACC7.66%
ROIC/WACC0.42
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 19.81 and the Price/Book (PB) ratio is 1.63.
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%.