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GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis

NASDAQ:GWRS - Nasdaq - US3794631024 - Common Stock - Currency: USD

11.74  -0.16 (-1.34%)

After market: 11.74 0 (0%)

Fundamental Rating

3

GWRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. Both the profitability and financial health of GWRS have multiple concerns. GWRS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year GWRS was profitable.
GWRS had a positive operating cash flow in the past year.
In the past 5 years GWRS has always been profitable.
GWRS had a positive operating cash flow in each of the past 5 years.
GWRS Yearly Net Income VS EBIT VS OCF VS FCFGWRS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M

1.2 Ratios

GWRS has a Return On Assets of 1.61%. This is in the lower half of the industry: GWRS underperforms 78.57% of its industry peers.
GWRS has a better Return On Equity (13.29%) than 85.71% of its industry peers.
GWRS's Return On Invested Capital of 2.00% is on the low side compared to the rest of the industry. GWRS is outperformed by 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GWRS is below the industry average of 5.70%.
Industry RankSector Rank
ROA 1.61%
ROE 13.29%
ROIC 2%
ROA(3y)1.71%
ROA(5y)1.27%
ROE(3y)13.62%
ROE(5y)10.66%
ROIC(3y)2.28%
ROIC(5y)2.23%
GWRS Yearly ROA, ROE, ROICGWRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80 100

1.3 Margins

Looking at the Profit Margin, with a value of 12.52%, GWRS is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of GWRS has grown nicely.
GWRS's Operating Margin of 18.74% is on the low side compared to the rest of the industry. GWRS is outperformed by 71.43% of its industry peers.
GWRS's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 18.74%
PM (TTM) 12.52%
GM N/A
OM growth 3Y6.83%
OM growth 5Y-2.35%
PM growth 3Y73.67%
PM growth 5Y11.52%
GM growth 3YN/A
GM growth 5YN/A
GWRS Yearly Profit, Operating, Gross MarginsGWRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

GWRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GWRS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GWRS has more shares outstanding
Compared to 1 year ago, GWRS has an improved debt to assets ratio.
GWRS Yearly Shares OutstandingGWRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
GWRS Yearly Total Debt VS Total AssetsGWRS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

GWRS has an Altman-Z score of 0.73. This is a bad value and indicates that GWRS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, GWRS is doing worse than 78.57% of the companies in the same industry.
GWRS has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.47, GWRS is doing worse than 78.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.47
Debt/FCF N/A
Altman-Z 0.73
ROIC/WACC0.26
WACC7.62%
GWRS Yearly LT Debt VS Equity VS FCFGWRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 1.63 indicates that GWRS should not have too much problems paying its short term obligations.
GWRS has a Current ratio of 1.63. This is amongst the best in the industry. GWRS outperforms 85.71% of its industry peers.
GWRS has a Quick Ratio of 1.63. This is a normal value and indicates that GWRS is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.63, GWRS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.63
GWRS Yearly Current Assets VS Current LiabilitesGWRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.00% over the past year.
GWRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
GWRS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
GWRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.34% yearly.
EPS 1Y (TTM)16%
EPS 3Y45.98%
EPS 5Y31.95%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y11.14%
Revenue growth 5Y8.34%
Sales Q2Q%-1.45%

3.2 Future

GWRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.37% yearly.
The Revenue is expected to grow by 4.99% on average over the next years.
EPS Next Y2%
EPS Next 2Y3.66%
EPS Next 3Y13.37%
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y2.81%
Revenue Next 3Y4.99%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
GWRS Yearly Revenue VS EstimatesGWRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M
GWRS Yearly EPS VS EstimatesGWRS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.1 -0.1 0.2 0.3 0.4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 40.48, which means the current valuation is very expensive for GWRS.
Based on the Price/Earnings ratio, GWRS is valued a bit more expensive than 78.57% of the companies in the same industry.
GWRS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 39.02, which means the current valuation is very expensive for GWRS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRS indicates a slightly more expensive valuation: GWRS is more expensive than 71.43% of the companies listed in the same industry.
GWRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 40.48
Fwd PE 39.02
GWRS Price Earnings VS Forward Price EarningsGWRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than 71.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.2
GWRS Per share dataGWRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GWRS's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.24
PEG (5Y)1.27
EPS Next 2Y3.66%
EPS Next 3Y13.37%

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4

5. Dividend

5.1 Amount

GWRS has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 3.57, GWRS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, GWRS has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.59%

5.2 History

The dividend of GWRS has a limited annual growth rate of 1.19%.
GWRS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.19%
Div Incr Years0
Div Non Decr Years0
GWRS Yearly Dividends per shareGWRS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

112.11% of the earnings are spent on dividend by GWRS. This is not a sustainable payout ratio.
GWRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP112.11%
EPS Next 2Y3.66%
EPS Next 3Y13.37%
GWRS Yearly Income VS Free CF VS DividendGWRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M
GWRS Dividend Payout.GWRS Dividend Payout, showing the Payout Ratio.GWRS Dividend Payout.PayoutRetained Earnings

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GLOBAL WATER RESOURCES INC

NASDAQ:GWRS (1/29/2025, 8:00:02 PM)

After market: 11.74 0 (0%)

11.74

-0.16 (-1.34%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners30.65%
Inst Owner Change0.87%
Ins Owners10.21%
Ins Owner Change0.71%
Market Cap284.34M
Analysts85
Price Target17.14 (46%)
Short Float %0.92%
Short Ratio3.32
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
Yearly Dividend0.3
Dividend Growth(5Y)1.19%
DP112.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-17 2025-01-17 (0.02533)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.63%
Min EPS beat(2)-14.22%
Max EPS beat(2)6.95%
EPS beat(4)3
Avg EPS beat(4)20.49%
Min EPS beat(4)-14.22%
Max EPS beat(4)71.57%
EPS beat(8)6
Avg EPS beat(8)26.52%
EPS beat(12)10
Avg EPS beat(12)76.18%
EPS beat(16)13
Avg EPS beat(16)62.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-2.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.05%
Revenue beat(8)3
Avg Revenue beat(8)1.89%
Revenue beat(12)4
Avg Revenue beat(12)0.88%
Revenue beat(16)7
Avg Revenue beat(16)1.21%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.87%
Valuation
Industry RankSector Rank
PE 40.48
Fwd PE 39.02
P/S 5.49
P/FCF N/A
P/OCF 15.35
P/B 5.82
P/tB 9.24
EV/EBITDA 18.2
EPS(TTM)0.29
EY2.47%
EPS(NY)0.3
Fwd EY2.56%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.76
OCFY6.52%
SpS2.14
BVpS2.02
TBVpS1.27
PEG (NY)20.24
PEG (5Y)1.27
Profitability
Industry RankSector Rank
ROA 1.61%
ROE 13.29%
ROCE 2.52%
ROIC 2%
ROICexc 2.1%
ROICexgc 2.21%
OM 18.74%
PM (TTM) 12.52%
GM N/A
FCFM N/A
ROA(3y)1.71%
ROA(5y)1.27%
ROE(3y)13.62%
ROE(5y)10.66%
ROIC(3y)2.28%
ROIC(5y)2.23%
ROICexc(3y)2.34%
ROICexc(5y)2.31%
ROICexgc(3y)2.48%
ROICexgc(5y)2.46%
ROCE(3y)2.87%
ROCE(5y)2.81%
ROICexcg growth 3Y7%
ROICexcg growth 5Y-1.7%
ROICexc growth 3Y7.2%
ROICexc growth 5Y-1.53%
OM growth 3Y6.83%
OM growth 5Y-2.35%
PM growth 3Y73.67%
PM growth 5Y11.52%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 2.47
Debt/FCF N/A
Debt/EBITDA 5.61
Cap/Depr 194.85%
Cap/Sales 44.21%
Interest Coverage 1.78
Cash Conversion 86.31%
Profit Quality N/A
Current Ratio 1.63
Quick Ratio 1.63
Altman-Z 0.73
F-Score5
WACC7.62%
ROIC/WACC0.26
Cap/Depr(3y)243.66%
Cap/Depr(5y)193.22%
Cap/Sales(3y)53.86%
Cap/Sales(5y)43.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16%
EPS 3Y45.98%
EPS 5Y31.95%
EPS Q2Q%9.09%
EPS Next Y2%
EPS Next 2Y3.66%
EPS Next 3Y13.37%
EPS Next 5YN/A
Revenue 1Y (TTM)0.09%
Revenue growth 3Y11.14%
Revenue growth 5Y8.34%
Sales Q2Q%-1.45%
Revenue Next Year1.06%
Revenue Next 2Y2.81%
Revenue Next 3Y4.99%
Revenue Next 5YN/A
EBIT growth 1Y-18.11%
EBIT growth 3Y18.73%
EBIT growth 5Y5.8%
EBIT Next Year105.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.46%
FCF growth 3Y-17.26%
FCF growth 5Y-13.92%
OCF growth 1Y-25.56%
OCF growth 3Y20.34%
OCF growth 5Y17.56%