8.62 USD
-0.16 (-1.82%)
8.62 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. While GWRS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- GWRS had a positive operating cash flow in the past year.
- Each year in the past 5 years GWRS has been profitable.
- GWRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GWRS has a worse Return On Assets (0.91%) than 78.57% of its industry peers.
- GWRS has a worse Return On Equity (4.87%) than 78.57% of its industry peers.
- The Return On Invested Capital of GWRS (1.29%) is worse than 78.57% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GWRS is below the industry average of 4.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 4.87% | ||
| ROIC | 1.29% |
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
- GWRS has a worse Profit Margin (7.87%) than 78.57% of its industry peers.
- GWRS's Profit Margin has improved in the last couple of years.
- GWRS's Operating Margin of 14.56% 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.
- GWRS's Gross Margin of 85.96% is amongst the best of the industry. GWRS outperforms 100.00% of its industry peers.
- GWRS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 7.87% | ||
| GM | 85.96% |
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.
- The number of shares outstanding for GWRS has been increased compared to 1 year ago.
- The number of shares outstanding for GWRS has been increased compared to 5 years ago.
- The debt/assets ratio for GWRS is higher compared to a year ago.
2.2 Solvency
- GWRS has an Altman-Z score of 0.56. This is a bad value and indicates that GWRS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of GWRS (0.56) is worse than 85.71% of its industry peers.
- GWRS has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.38, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.17
WACC7.82%
2.3 Liquidity
- GWRS has a Current Ratio of 1.18. This is a normal value and indicates that GWRS is financially healthy and should not expect problems in meeting its short term obligations.
- GWRS's Current ratio of 1.18 is in line compared to the rest of the industry. GWRS outperforms 57.14% of its industry peers.
- A Quick Ratio of 1.18 indicates that GWRS should not have too much problems paying its short term obligations.
- The Quick ratio of GWRS (1.18) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- GWRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.38%.
- 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 7.06% in the last year.
- Measured over the past years, GWRS shows a quite strong growth in Revenue. The Revenue has been growing by 8.24% on average per year.
EPS 1Y (TTM)-41.38%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-41.67%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%8.37%
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 15.33% yearly.
- GWRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y-27.75%
EPS Next 2Y-1.13%
EPS Next 3Y11.94%
EPS Next 5Y15.33%
Revenue Next Year6.65%
Revenue Next 2Y7.51%
Revenue Next 3Y8.78%
Revenue Next 5Y7.05%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 50.71 indicates a quite expensive valuation of GWRS.
- Based on the Price/Earnings ratio, GWRS is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.21. GWRS is valued rather expensively when compared to this.
- GWRS is valuated quite expensively with a Price/Forward Earnings ratio of 36.74.
- Based on the Price/Forward Earnings ratio, GWRS is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. GWRS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 36.74 |
4.2 Price Multiples
- GWRS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y-1.13%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
- GWRS has a Yearly Dividend Yield of 3.46%.
- GWRS's Dividend Yield is a higher than the industry average which is at 2.93.
- GWRS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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.
- GWRS has decreased its dividend recently.
Dividend Growth(5Y)1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GWRS pays out 179.97% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of GWRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP179.97%
EPS Next 2Y-1.13%
EPS Next 3Y11.94%
GLOBAL WATER RESOURCES INC / GWRS FAQ
Can you provide the ChartMill fundamental rating for GLOBAL WATER RESOURCES INC?
ChartMill assigns a fundamental rating of 3 / 10 to GWRS.
Can you provide the valuation status for GLOBAL WATER RESOURCES INC?
ChartMill assigns a valuation rating of 0 / 10 to GLOBAL WATER RESOURCES INC (GWRS). This can be considered as Overvalued.
How profitable is GLOBAL WATER RESOURCES INC (GWRS) stock?
GLOBAL WATER RESOURCES INC (GWRS) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for GWRS stock?
The Earnings per Share (EPS) of GLOBAL WATER RESOURCES INC (GWRS) is expected to decline by -27.75% in the next year.
Can you provide the dividend sustainability for GWRS stock?
The dividend rating of GLOBAL WATER RESOURCES INC (GWRS) is 5 / 10 and the dividend payout ratio is 179.97%.