GWR Global Water Resources Inc (GWR.CA) Stock Fundamental Analysis
Canada - TSX:GWR - US3794631024 - Common Stock
17.84 CAD
-0.3 (-1.65%)
We assign a fundamental rating of 5 out of 10 to GWR. GWR was compared to 1 industry peers in the Water Utilities industry. There are concerns on the financial health of GWR while its profitability can be described as average. GWR is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
GWR had positive earnings in the past year.
GWR had a positive operating cash flow in the past year.
1.2 Ratios
GWR has a better Return On Assets (1.55%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.16%, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.74%, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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's Profit Margin of 11.44% is amongst the best of the industry. GWR outperforms 100.00% of its industry peers.
GWR's Profit Margin has been stable in the last couple of years.
GWR has a better Operating Margin (17.97%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GWR has declined.
| 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.
Compared to 1 year ago, GWR has more shares outstanding
The debt/assets ratio for GWR has been reduced compared to a year ago.
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's Altman-Z score of 0.90 is amongst the best of the industry. GWR outperforms 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.
With a Debt to Equity ratio value of 2.37, GWR perfoms like the industry average, 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.
The Current ratio of GWR (1.16) is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that GWR should not have too much problems paying its short term obligations.
The Quick ratio of GWR (1.16) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
GWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
The Earnings Per Share has been growing by 25.99% on average over the past years. This is a very strong growth
Looking at the last year, GWR shows a small growth in Revenue. The Revenue has grown by 6.24% in the last year.
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.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 59.47, the valuation of GWR can be described as expensive.
Based on the Price/Earnings ratio, GWR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
GWR is valuated expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 51.44, GWR can be considered very expensive at the moment.
GWR's Price/Forward 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/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.47 | ||
| Fwd PE | 51.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWR is valued 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.
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
GWR has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
GWR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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
TSX:GWR (2/24/2023, 7:00:00 PM)
17.84
-0.3 (-1.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners22.34%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap425.77M
Revenue(TTM)43.94M
Net Income(TTM)5.03M
Analysts85
Price Target23.68 (32.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend0.29
Dividend Growth(5Y)0.99%
DP133.93%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.86%
Min EPS beat(2)37.25%
Max EPS beat(2)76.47%
EPS beat(4)4
Avg EPS beat(4)175.49%
Min EPS beat(4)37.25%
Max EPS beat(4)492.16%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)0.06%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.29%
PT rev (3m)-1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.47 | ||
| Fwd PE | 51.44 | ||
| P/S | 7.13 | ||
| P/FCF | N/A | ||
| P/OCF | 12.58 | ||
| P/B | 6.95 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 23.2 |
EPS(TTM)0.3
EY1.68%
EPS(NY)0.35
Fwd EY1.94%
FCF(TTM)-0.39
FCFYN/A
OCF(TTM)1.42
OCFY7.95%
SpS2.5
BVpS2.57
TBVpS1.69
PEG (NY)0.88
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 11.16% | ||
| ROCE | N/A | ||
| ROIC | 1.74% | ||
| ROICexc | 1.84% | ||
| ROICexgc | 1.94% | ||
| OM | 17.97% | ||
| PM (TTM) | 11.44% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2%
ROIC(5y)N/A
ROICexc(3y)1.87%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-12.05%
ROICexgc growth 5Y-1.21%
ROICexc growth 3Y-11.92%
ROICexc growth 5Y-1.19%
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
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 327.66% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 0.9 |
F-Score5
WACC7.22%
ROIC/WACC0.24
Cap/Depr(3y)142.48%
Cap/Depr(5y)158.77%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)188.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y25.99%
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y67.57%
EPS Next 2Y34.96%
EPS Next 3Y33.97%
EPS Next 5YN/A
Revenue 1Y (TTM)6.24%
Revenue growth 3Y5.67%
Revenue growth 5Y7.06%
Sales Q2Q%4.29%
Revenue Next Year6.47%
Revenue Next 2Y8.95%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y19.77%
EBIT growth 3Y-9.03%
EBIT growth 5Y3.73%
EBIT Next Year212.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-674.25%
FCF growth 3Y-31.06%
FCF growth 5YN/A
OCF growth 1Y105.86%
OCF growth 3Y21.7%
OCF growth 5Y60.74%
GWR Global Water Resources Inc / GWR.CA FAQ
Can you provide the ChartMill fundamental rating for GWR Global Water Resources Inc?
ChartMill assigns a fundamental rating of 4 / 10 to GWR.CA.
What is the valuation status for GWR stock?
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 is the expected EPS growth for GWR Global Water Resources Inc (GWR.CA) stock?
The Earnings per Share (EPS) of GWR Global Water Resources Inc (GWR.CA) is expected to grow by 67.57% in the next year.
How sustainable is the dividend of GWR Global Water Resources Inc (GWR.CA) stock?
The dividend rating of GWR Global Water Resources Inc (GWR.CA) is 4 / 10 and the dividend payout ratio is 133.93%.