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%)
GWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 1 industry peers in the Water Utilities industry. While GWR is still in line with the averages on profitability rating, there are concerns on its financial health. GWR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- GWR had positive earnings in the past year.
- In the past year GWR had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.55%, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- GWR has a better Return On Equity (11.16%) than 100.00% of its industry peers.
- GWR has a better Return On Invested Capital (1.74%) 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
- GWR has a better Profit Margin (11.44%) than 100.00% of its industry peers.
- GWR's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 17.97%, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWR is destroying value.
- The number of shares outstanding for GWR has been increased compared to 1 year ago.
- GWR has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.90, we must say that GWR is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.90, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- GWR has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
- GWR has a Debt to Equity ratio of 2.37. This is comparable to the rest of the industry: GWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.24
WACC7.22%
2.3 Liquidity
- GWR has a Current Ratio of 1.16. This is a normal value and indicates that GWR is financially healthy and should not expect problems in meeting its short term obligations.
- GWR's Current ratio of 1.16 is in line compared 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 better Quick ratio (1.16) than 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.
- The Revenue has been growing slightly by 6.24% in the past year.
- Measured over the past years, GWR shows a small growth in Revenue. The Revenue has been growing by 7.06% on average per year.
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.
- GWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 59.47, the valuation of GWR can be described as expensive.
- 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 is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 51.44, the valuation of GWR can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GWR indicates a rather cheap valuation: GWR is cheaper than 100.00% of the companies listed 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWR indicates a rather cheap valuation: GWR is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.2 |
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.
- GWR's earnings are expected to grow with 33.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y34.96%
EPS Next 3Y33.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.09%, GWR has a reasonable but not impressive dividend return.
- 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 1.81.
| 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.
- The dividend of GWR is growing, but earnings are growing more, so the dividend growth is 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.