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. There are concerns on the financial health of GWR while its profitability can be described as average. 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
- 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.
- GWR has a Return On Invested Capital of 1.74%. This is amongst the best in the industry. GWR outperforms 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's Profit Margin of 11.44% is amongst the best of the industry. GWR outperforms 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 Operating Margin of 17.97%. This is amongst the best in the industry. GWR outperforms 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWR is destroying value.
- GWR has more shares outstanding than it did 1 year ago.
- GWR has a better debt/assets ratio than last year.
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.
- With an excellent Altman-Z score value of 0.90, GWR belongs to the best 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.
- With a Current ratio value of 1.16, GWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Quick Ratio of 1.16 indicates that GWR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, GWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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
- Based on estimates for the next years, GWR will show a very strong growth in Earnings Per Share. The EPS will grow by 33.97% on average per year.
- 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
- 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
- The Price/Earnings ratio is 59.47, which means the current valuation is very expensive for GWR.
- 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 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 51.44 indicates a quite expensive valuation of GWR.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GWR is valued quite 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.
- 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
- With a Yearly Dividend Yield of 2.09%, GWR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.00, GWR pays a better dividend. On top of this GWR pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GWR has a dividend comparable with the average S&P500 company.
| 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.
- As GWR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.99%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- GWR pays out 133.93% of its income as dividend. 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.