GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
USA - NASDAQ:GWRS - US3794631024 - Common Stock
10 USD
-0.17 (-1.67%)
10 USD
0 (0%)
GWRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 15 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. GWRS is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years GWRS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GWRS (1.24%) is worse than 73.33% of its industry peers.
With a Return On Equity value of 7.26%, GWRS is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
GWRS has a Return On Invested Capital of 1.57%. This is amonst the worse of the industry: GWRS underperforms 80.00% 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 4.86%.
| 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
The Profit Margin of GWRS (10.27%) is worse than 73.33% of its industry peers.
In the last couple of years the Profit Margin of GWRS has grown nicely.
GWRS's Operating Margin of 16.84% is on the low side compared to the rest of the industry. GWRS is outperformed by 73.33% of its industry peers.
In the last couple of years the Operating Margin of GWRS has declined.
GWRS's Gross Margin of 87.85% 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 | 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
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.
Compared to 5 years ago, GWRS has more shares outstanding
The debt/assets ratio for GWRS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
GWRS has a Altman-Z score of 0.64. This is amonst the worse of the industry: GWRS underperforms 80.00% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that GWRS has dependencies on debt financing.
GWRS's Debt to Equity ratio of 1.52 is on the low side compared to the rest of the industry. GWRS is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.21
WACC7.5%
2.3 Liquidity
GWRS has a Current Ratio of 1.09. This is a normal value and indicates that GWRS is financially healthy and should not expect problems in meeting its short term obligations.
GWRS has a Current ratio (1.09) which is comparable to the rest of the industry.
A Quick Ratio of 1.09 indicates that GWRS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, GWRS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for GWRS have decreased strongly by -21.43% in the last year.
The Earnings Per Share has been growing by 24.57% on average over the past years. This is a very strong growth
Looking at the last year, GWRS shows a small growth in Revenue. The Revenue has grown by 4.33% 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)-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
Based on estimates for the next years, GWRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
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-9.33%
EPS Next 2Y9.09%
EPS Next 3Y21.31%
EPS Next 5Y15.33%
Revenue Next Year6.87%
Revenue Next 2Y7.63%
Revenue Next 3Y10.45%
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.
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 45.45, 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 73.33% of the companies in the same industry.
GWRS is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.01, which means the current valuation is very expensive for GWRS.
73.33% of the companies in the same industry are cheaper than GWRS, based on the Price/Forward Earnings ratio.
GWRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.45 | ||
| Fwd PE | 35.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
GWRS's earnings are expected to grow with 21.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y9.09%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
GWRS has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.39, GWRS pays a bit more dividend than its industry peers.
GWRS's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 2Y9.09%
EPS Next 3Y21.31%
10
-0.17 (-1.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change3%
Ins Owners9.95%
Ins Owner Change-0.03%
Market Cap274.70M
Revenue(TTM)54.27M
Net Income(TTM)5.57M
Analysts84.44
Price Target14.45 (44.5%)
Short Float %1.36%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-8.6%
PT rev (3m)-8.6%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.03%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.45 | ||
| Fwd PE | 35.01 | ||
| P/S | 5.06 | ||
| P/FCF | N/A | ||
| P/OCF | 16.12 | ||
| P/B | 3.58 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 16.98 |
EPS(TTM)0.22
EY2.2%
EPS(NY)0.29
Fwd EY2.86%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)0.62
OCFY6.2%
SpS1.98
BVpS2.79
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.85
Graham Number3.72
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%
ROICexgc growth 3Y-2.27%
ROICexgc 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
WACC7.5%
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-9.33%
EPS Next 2Y9.09%
EPS Next 3Y21.31%
EPS Next 5Y15.33%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
Revenue Next Year6.87%
Revenue Next 2Y7.63%
Revenue Next 3Y10.45%
Revenue Next 5Y7.05%
EBIT growth 1Y-4.44%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year158.1%
EBIT Next 3YN/A
EBIT Next 5Y30.1%
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%
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.
What is the valuation status for GWRS stock?
ChartMill assigns a valuation rating of 1 / 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.
What is the valuation of GLOBAL WATER RESOURCES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBAL WATER RESOURCES INC (GWRS) is 45.45 and the Price/Book (PB) ratio is 3.58.
How sustainable is the dividend of GLOBAL WATER RESOURCES INC (GWRS) stock?
The dividend rating of GLOBAL WATER RESOURCES INC (GWRS) is 5 / 10 and the dividend payout ratio is 136.17%.