CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
45.65 USD
-0.05 (-0.11%)
Taking everything into account, CWT scores 3 out of 10 in our fundamental rating. CWT was compared to 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. While showing a medium growth rate, CWT is valued expensive at the moment.
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.
CWT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CWT has a Return On Assets of 2.52%. This is in the lower half of the industry: CWT underperforms 60.00% of its industry peers.
The Return On Equity of CWT (8.21%) is comparable to the rest of the industry.
CWT's Return On Invested Capital of 3.26% is on the low side compared to the rest of the industry. CWT is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWT is below the industry average of 4.77%.
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.
CWT's Operating Margin of 21.11% is on the low side compared to the rest of the industry. CWT is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of CWT has grown nicely.
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.
Compared to 1 year ago, CWT has more shares outstanding
Compared to 5 years ago, CWT has more shares outstanding
Compared to 1 year ago, CWT has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.85, CWT is doing worse than 60.00% of the companies in the same industry.
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
WACC7.68%
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.
The Quick ratio of CWT (0.50) is worse than 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.
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!
Measured over the past years, CWT shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
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.
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-28.27%
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 19.93 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.
When comparing the Price/Earnings ratio of CWT to the average of the S&P500 Index (25.98), we can say CWT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.50, CWT is valued on the expensive side.
73.33% of the companies in the same industry are more expensive than CWT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, CWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 17.5 |
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 | 11.02 |
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)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.
Compared to an average S&P500 Dividend Yield of 2.41, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 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-10.69%
EPS Next 3Y-5.53%
NYSE:CWT (11/26/2025, 11:19:55 AM)
45.65
-0.05 (-0.11%)
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 Cap2.72B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price Target52.7 (15.44%)
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 | 19.93 | ||
| Fwd PE | 17.5 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | 10.57 | ||
| P/B | 1.64 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)2.29
EY5.02%
EPS(NY)2.61
Fwd EY5.71%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.46%
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
WACC7.68%
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 19.93 and the Price/Book (PB) ratio is 1.64.
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%.