GWR Global Water Resources Inc (GWR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GWR - US3794631024 - Common Stock
17.84 CAD
-0.3 (-1.65%)
Overall GWR gets a fundamental rating of 5 out of 10. We evaluated GWR against 1 industry peers in the Water Utilities industry. GWR has a medium profitability rating, but doesn't score so well on its financial health evaluation. GWR is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year GWR was profitable.
- GWR had a positive operating cash flow in the past year.
1.2 Ratios
- GWR has a Return On Assets of 1.55%. This is amongst the best in the industry. GWR outperforms 100.00% of its industry peers.
- The Return On Equity of GWR (11.16%) is better than 100.00% of its industry peers.
- The Return On Invested Capital of GWR (1.74%) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 11.16% | ||
| ROIC | 1.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of GWR (11.44%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of GWR has remained more or less at the same level.
- GWR has a better Operating Margin (17.97%) than 100.00% of its industry peers.
- GWR's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.97% | ||
| PM (TTM) | 11.44% | ||
| GM | N/A |
OM growth 3Y-13.91%
OM growth 5Y-3.11%
PM growth 3Y-0.45%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWR is destroying value.
- The number of shares outstanding for GWR has been increased compared to 1 year ago.
- Compared to 1 year ago, GWR has an improved debt to assets ratio.
2.2 Solvency
- GWR has an Altman-Z score of 0.90. This is a bad value and indicates that GWR is not financially healthy and even has some risk of bankruptcy.
- GWR has a better Altman-Z score (0.90) than 100.00% of its industry peers.
- A Debt/Equity ratio of 2.37 is on the high side and indicates that GWR has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.37, GWR is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.24
WACC7.22%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that GWR should not have too much problems paying its short term obligations.
- GWR has a Current ratio of 1.16. This is comparable to the rest of the industry: GWR outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.16 indicates that GWR should not have too much problems paying its short term obligations.
- GWR has a Quick ratio of 1.16. This is amongst the best in the industry. GWR outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 100.00% over the past year.
- GWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.99% yearly.
- GWR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.24%.
- GWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.
EPS 1Y (TTM)100%
EPS 3Y25.99%
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)6.24%
Revenue growth 3Y5.67%
Revenue growth 5Y7.06%
Sales Q2Q%4.29%
3.2 Future
- GWR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.97% yearly.
- Based on estimates for the next years, GWR will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y67.57%
EPS Next 2Y34.96%
EPS Next 3Y33.97%
EPS Next 5YN/A
Revenue Next Year6.47%
Revenue Next 2Y8.95%
Revenue Next 3Y9%
Revenue Next 5YN/A
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 accelerating.
- 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
- A Price/Earnings ratio of 59.47 indicates a quite expensive valuation of GWR.
- GWR's Price/Earnings ratio is rather cheap when compared to the industry. GWR is cheaper than 100.00% of the companies in the same industry.
- GWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 51.44 indicates a quite expensive valuation of GWR.
- Based on the Price/Forward Earnings ratio, GWR is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GWR to the average of the S&P500 Index (25.98), we can say GWR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.47 | ||
| Fwd PE | 51.44 |
4.2 Price Multiples
- GWR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GWR is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.2 |
4.3 Compensation for Growth
- GWR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as GWR's earnings are expected to grow with 33.97% in the coming years.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y34.96%
EPS Next 3Y33.97%
5. Dividend
5.1 Amount
- GWR has a Yearly Dividend Yield of 2.09%.
- GWR's Dividend Yield is rather good when compared to the industry average which is at 0.00. GWR pays more dividend than 100.00% of the companies in the same industry.
- GWR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
- The dividend of GWR has a limited annual growth rate of 0.99%.
- GWR has been paying a dividend for over 5 years, so it has already some track record.
- GWR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.99%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 133.93% of the earnings are spent on dividend by GWR. This is not a sustainable payout ratio.
- GWR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP133.93%
EPS Next 2Y34.96%
EPS Next 3Y33.97%
GWR Global Water Resources Inc / GWR.CA FAQ
What is the ChartMill fundamental rating of GWR Global Water Resources Inc (GWR.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GWR.CA.
Can you provide the valuation status for GWR Global Water Resources Inc?
ChartMill assigns a valuation rating of 2 / 10 to GWR Global Water Resources Inc (GWR.CA). This can be considered as Overvalued.
What is the profitability of GWR stock?
GWR Global Water Resources Inc (GWR.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GWR Global Water Resources Inc (GWR.CA) stock?
The Price/Earnings (PE) ratio for GWR Global Water Resources Inc (GWR.CA) is 59.47 and the Price/Book (PB) ratio is 6.95.
What is the financial health of GWR Global Water Resources Inc (GWR.CA) stock?
The financial health rating of GWR Global Water Resources Inc (GWR.CA) is 2 / 10.