CALIFORNIA WATER SERVICE GRP (CWT)
US1307881029 - Common Stock
CWT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium 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.
In the past 5 years CWT has always been profitable.
Each year in the past 5 years CWT had a positive operating cash flow.
1.2 Ratios
CWT's Return On Assets of 3.01% is in line compared to the rest of the industry. CWT outperforms 50.00% of its industry peers.
The Return On Equity of CWT (9.82%) is better than 64.29% of its industry peers.
The Return On Invested Capital of CWT (2.73%) is worse than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 5.06%.
The last Return On Invested Capital (2.73%) for CWT is above the 3 year average (2.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 9.82% | ||
| ROIC | 2.73% |
ROA(3y)2.06%
ROA(5y)2.21%
ROE(3y)6.5%
ROE(5y)7.62%
ROIC(3y)2.23%
ROIC(5y)2.7%
1.3 Margins
CWT has a Profit Margin (15.42%) which is comparable to the rest of the industry.
CWT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 16.84%, CWT is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
CWT's Operating Margin has declined in the last couple of years.
The Gross Margin of CWT (70.17%) is better than 78.57% of its industry peers.
In the last couple of years the Gross Margin of CWT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 15.42% | ||
| GM | 70.17% |
OM growth 3Y-25.22%
OM growth 5Y-15.86%
PM growth 3Y-18.77%
PM growth 5Y-7.01%
GM growth 3Y-0.33%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWT is destroying value.
The number of shares outstanding for CWT has been increased compared to 1 year ago.
Compared to 5 years ago, CWT has more shares outstanding
The debt/assets ratio for CWT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that CWT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.98, CWT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that CWT is somewhat dependend on debt financing.
CWT has a better Debt to Equity ratio (0.91) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.35
WACC7.73%
2.3 Liquidity
CWT has a Current Ratio of 0.56. 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 (0.56) is worse than 85.71% of its industry peers.
CWT has a Quick Ratio of 0.56. 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 0.52, CWT is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 86.57% over the past year.
CWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.72% yearly.
Looking at the last year, CWT shows a quite strong growth in Revenue. The Revenue has grown by 16.13% in the last year.
Measured over the past years, CWT shows a small growth in Revenue. The Revenue has been growing by 2.62% on average per year.
EPS 1Y (TTM)86.57%
EPS 3Y-22.87%
EPS 5Y-6.72%
EPS growth Q2Q402.5%
Revenue 1Y (TTM)16.13%
Revenue growth 3Y0.01%
Revenue growth 5Y2.62%
Revenue growth Q2Q106.52%
3.2 Future
The Earnings Per Share is expected to grow by 27.93% on average over the next years. This is a very strong growth
Based on estimates for the next years, CWT will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y175.48%
EPS Next 2Y64.52%
EPS Next 3Y43%
EPS Next 5Y27.93%
Revenue Next Year7.42%
Revenue Next 2Y5.88%
Revenue Next 3Y5.88%
Revenue Next 5Y4.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.32, CWT is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CWT indicates a somewhat cheap valuation: CWT is cheaper than 78.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. CWT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 22.12, the valuation of CWT can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CWT.
When comparing the Price/Forward Earnings ratio of CWT to the average of the S&P500 Index (20.15), we can say CWT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
71.43% 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 | 14.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CWT's earnings are expected to grow with 43.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y64.52%
EPS Next 3Y43%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.10%.
CWT's Dividend Yield is slightly below the industry average, which is at 3.53.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of CWT grows each year by 6.82%, which is quite nice.
CWT has paid a dividend for at least 10 years, which is 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)6.82%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CWT pays out 42.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CWT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.17%
EPS Next 2Y64.52%
EPS Next 3Y43%
CALIFORNIA WATER SERVICE GRP
NYSE:CWT (5/17/2024, 7:04:00 PM)
After market: 53.29 0 (0%)53.29
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 22.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 9.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.84% | ||
| PM (TTM) | 15.42% | ||
| GM | 70.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)86.57%
EPS 3Y-22.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y175.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.13%
Revenue growth 3Y0.01%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y