GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
USA - NASDAQ:GWRS - US3794631024 - Common Stock
9.99 USD
-0.04 (-0.4%)
9.99 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to GWRS. GWRS was compared to 14 industry peers in the Water Utilities industry. There are concerns on the financial health of GWRS while its profitability can be described as average. While showing a medium growth rate, GWRS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GWRS had positive earnings in the past year.
In the past year GWRS had a positive cash flow from operations.
Each year in the past 5 years GWRS has been profitable.
Each year in the past 5 years GWRS had a positive operating cash flow.
1.2 Ratios
GWRS's Return On Assets of 1.24% is on the low side compared to the rest of the industry. GWRS is outperformed by 78.57% of its industry peers.
GWRS has a Return On Equity of 7.26%. This is in the lower half of the industry: GWRS underperforms 71.43% of its industry peers.
GWRS's Return On Invested Capital of 1.57% is on the low side compared to the rest of the industry. GWRS is outperformed by 78.57% of its industry peers.
GWRS had an Average Return On Invested Capital over the past 3 years of 2.09%. This is below the industry average of 4.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 7.26% | ||
| ROIC | 1.57% |
ROA(3y)1.78%
ROA(5y)1.39%
ROE(3y)13.66%
ROE(5y)11.29%
ROIC(3y)2.09%
ROIC(5y)2.02%
1.3 Margins
Looking at the Profit Margin, with a value of 10.27%, GWRS is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of GWRS has grown nicely.
GWRS has a worse Operating Margin (16.84%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of GWRS has declined.
With an excellent Gross Margin value of 87.85%, GWRS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GWRS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 10.27% | ||
| GM | 87.85% |
OM growth 3Y2.05%
OM growth 5Y-2.04%
PM growth 3Y8.45%
PM growth 5Y11.91%
GM growth 3YN/A
GM growth 5Y-1.02%
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 a worse debt to assets ratio.
2.2 Solvency
GWRS has an Altman-Z score of 0.64. 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 0.64, GWRS is doing worse than 85.71% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that GWRS has dependencies on debt financing.
The Debt to Equity ratio of GWRS (1.52) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.21
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GWRS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, GWRS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that GWRS should not have too much problems paying its short term obligations.
The Quick ratio of GWRS (1.09) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
GWRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
Measured over the past years, GWRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.57% on average per year.
Looking at the last year, GWRS shows a small growth in Revenue. The Revenue has grown by 4.33% in the last year.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-21.43%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
3.2 Future
The Earnings Per Share is expected to grow by 8.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y-6.5%
EPS Next 2Y8.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.58%
Revenue Next 2Y6.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 45.41, GWRS can be considered very expensive at the moment.
GWRS's Price/Earnings ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 78.57% of the companies in the same industry.
GWRS is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.61 indicates a quite expensive valuation of 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.
When comparing the Price/Forward Earnings ratio of GWRS to the average of the S&P500 Index (22.86), we can say GWRS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.41 | ||
| Fwd PE | 35.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWRS indicates a slightly more expensive valuation: GWRS is more expensive than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y8.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GWRS has a Yearly Dividend Yield of 3.07%.
GWRS's Dividend Yield is a higher than the industry average which is at 3.37.
Compared to an average S&P500 Dividend Yield of 2.38, GWRS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of GWRS has a limited annual growth rate of 1.00%.
GWRS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GWRS decreased recently.
Dividend Growth(5Y)1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GWRS pays out 136.17% of its income as dividend. This is not a sustainable payout ratio.
GWRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP136.17%
EPS Next 2Y8.11%
EPS Next 3YN/A
9.99
-0.04 (-0.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners27.88%
Inst Owner Change7.18%
Ins Owners9.94%
Ins Owner Change8.51%
Market Cap274.43M
Analysts85
Price Target15.81 (58.26%)
Short Float %1.26%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend0.3
Dividend Growth(5Y)1%
DP136.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.38%
Min EPS beat(2)-1.96%
Max EPS beat(2)30.72%
EPS beat(4)2
Avg EPS beat(4)-7.9%
Min EPS beat(4)-67.32%
Max EPS beat(4)30.72%
EPS beat(8)5
Avg EPS beat(8)9.77%
EPS beat(12)8
Avg EPS beat(12)17.57%
EPS beat(16)11
Avg EPS beat(16)52.56%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.43%
Revenue beat(12)5
Avg Revenue beat(12)1.36%
Revenue beat(16)6
Avg Revenue beat(16)0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)2.33%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.41 | ||
| Fwd PE | 35.61 | ||
| P/S | 5.06 | ||
| P/FCF | N/A | ||
| P/OCF | 16.1 | ||
| P/B | 3.58 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)0.22
EY2.2%
EPS(NY)0.28
Fwd EY2.81%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)0.62
OCFY6.21%
SpS1.98
BVpS2.79
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 7.26% | ||
| ROCE | 2.13% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.6% | ||
| ROICexgc | 1.66% | ||
| OM | 16.84% | ||
| PM (TTM) | 10.27% | ||
| GM | 87.85% | ||
| FCFM | N/A |
ROA(3y)1.78%
ROA(5y)1.39%
ROE(3y)13.66%
ROE(5y)11.29%
ROIC(3y)2.09%
ROIC(5y)2.02%
ROICexc(3y)2.13%
ROICexc(5y)2.09%
ROICexgc(3y)2.25%
ROICexgc(5y)2.22%
ROCE(3y)2.84%
ROCE(5y)2.75%
ROICexcg growth 3Y-2.27%
ROICexcg growth 5Y-2.71%
ROICexc growth 3Y-1.84%
ROICexc growth 5Y-2.29%
OM growth 3Y2.05%
OM growth 5Y-2.04%
PM growth 3Y8.45%
PM growth 5Y11.91%
GM growth 3YN/A
GM growth 5Y-1.02%
F-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 401.71% | ||
| Cap/Sales | 102.29% | ||
| Interest Coverage | 1.6 | ||
| Cash Conversion | 74.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 0.64 |
F-Score4
WACC7.6%
ROIC/WACC0.21
Cap/Depr(3y)259.99%
Cap/Depr(5y)214.68%
Cap/Sales(3y)59.8%
Cap/Sales(5y)49.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.43%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-14.29%
EPS Next Y-6.5%
EPS Next 2Y8.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
Revenue Next Year6.58%
Revenue Next 2Y6.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.44%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year160%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-331.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.35%
OCF growth 3Y2.23%
OCF growth 5Y13.49%