GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
NASDAQ:GWRS - Nasdaq - US3794631024 - Common Stock - Currency: USD
Overall GWRS gets a fundamental rating of 3 out of 10. We evaluated GWRS against 14 industry peers in the Water Utilities industry. GWRS has a bad profitability rating. Also its financial health evaluation is rather negative. GWRS is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years GWRS has always been profitable.
GWRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GWRS's Return On Assets of 1.61% is on the low side compared to the rest of the industry. GWRS is outperformed by 78.57% of its industry peers.
With an excellent Return On Equity value of 13.29%, GWRS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
GWRS has a worse Return On Invested Capital (2.00%) than 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 5.69%.
| Industry Rank | Sector 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%
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.
With a Operating Margin value of 18.74%, GWRS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GWRS has declined.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWRS is destroying value.
The number of shares outstanding for GWRS has been increased compared to 1 year ago.
GWRS has more shares outstanding than it did 5 years ago.
GWRS has a better debt/assets ratio than last year.
2.2 Solvency
GWRS has an Altman-Z score of 0.72. This is a bad value and indicates that GWRS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.72, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
GWRS has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GWRS (2.47) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.26
WACC7.74%
2.3 Liquidity
GWRS has a Current 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.
GWRS's Current ratio of 1.63 is amongst the best of the industry. GWRS outperforms 85.71% of its industry peers.
A Quick Ratio of 1.63 indicates that GWRS should not have too much problems paying its short term obligations.
GWRS has a better Quick ratio (1.63) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
GWRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.00%, which is quite good.
Measured over the past years, GWRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
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.
Based on estimates for the next years, GWRS will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GWRS is valuated quite expensively with a Price/Earnings ratio of 39.10.
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.
When comparing the Price/Earnings ratio of GWRS to the average of the S&P500 Index (29.75), we can say GWRS is valued slightly more expensively.
With a Price/Forward Earnings ratio of 37.69, GWRS can be considered very expensive at the moment.
GWRS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 71.43% of the companies in the same industry.
GWRS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.1 | ||
| Fwd PE | 37.69 |
4.2 Price Multiples
GWRS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GWRS does not grow enough to justify the current Price/Earnings ratio.
GWRS's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)19.55
PEG (5Y)1.22
EPS Next 2Y3.66%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, GWRS has a reasonable but not impressive dividend return.
GWRS's Dividend Yield is a higher than the industry average which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.30, GWRS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of GWRS has a limited annual growth rate of 1.19%.
GWRS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GWRS pays out 112.11% 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.
DP112.11%
EPS Next 2Y3.66%
EPS Next 3Y13.37%
11.34
-0.14 (-1.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.03%
Inst Owner Change1.63%
Ins Owners10.3%
Ins Owner Change0.63%
Market Cap274.65M
Analysts85
Price Target17.14 (51.15%)
Short Float %0.52%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.3
Dividend Growth(5Y)1.19%
DP112.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.1 | ||
| Fwd PE | 37.69 | ||
| P/S | 5.3 | ||
| P/FCF | N/A | ||
| P/OCF | 14.82 | ||
| P/B | 5.62 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 17.9 |
EPS(TTM)0.29
EY2.56%
EPS(NY)0.3
Fwd EY2.65%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.76
OCFY6.75%
SpS2.14
BVpS2.02
TBVpS1.27
PEG (NY)19.55
PEG (5Y)1.22
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.72 |
F-Score5
WACC7.74%
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%