CONSOLIDATED WATER CO-ORD SH (CWCO) Stock Fundamental Analysis
NASDAQ:CWCO - Nasdaq - KYG237731073 - Common Stock - Currency: USD
CWCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. CWCO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CWCO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CWCO suitable for growth investing!
1. Profitability
1.1 Basic Checks
CWCO had positive earnings in the past year.
In the past year CWCO had a positive cash flow from operations.
In the past 5 years CWCO has always been profitable.
Each year in the past 5 years CWCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CWCO (10.60%) is better than 92.86% of its industry peers.
CWCO has a Return On Equity of 12.44%. This is amongst the best in the industry. CWCO outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.94%, CWCO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CWCO is above the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 12.44% | ||
| ROIC | 5.94% |
ROA(3y)9.39%
ROA(5y)6.14%
ROE(3y)10.97%
ROE(5y)7.15%
ROIC(3y)9.39%
ROIC(5y)6.99%
1.3 Margins
CWCO has a Profit Margin (20.73%) which is comparable to the rest of the industry.
CWCO's Profit Margin has improved in the last couple of years.
CWCO has a Operating Margin of 12.00%. This is in the lower half of the industry: CWCO underperforms 78.57% of its industry peers.
CWCO's Operating Margin has declined in the last couple of years.
CWCO's Gross Margin of 34.42% is in line compared to the rest of the industry. CWCO outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of CWCO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 20.73% | ||
| GM | 34.42% |
OM growth 3Y20.49%
OM growth 5Y-3.8%
PM growth 3Y153.94%
PM growth 5Y3.57%
GM growth 3Y-1.05%
GM growth 5Y-3.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CWCO is creating some value.
Compared to 1 year ago, CWCO has more shares outstanding
The number of shares outstanding for CWCO has been increased compared to 5 years ago.
CWCO has a better debt/assets ratio than last year.
2.2 Solvency
CWCO has an Altman-Z score of 9.43. This indicates that CWCO is financially healthy and has little risk of bankruptcy at the moment.
CWCO has a Altman-Z score of 9.43. This is amongst the best in the industry. CWCO outperforms 92.86% of its industry peers.
CWCO has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that CWCO is not too dependend on debt financing.
CWCO has a better Debt to Equity ratio (0.00) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.43 |
ROIC/WACC0.67
WACC8.91%
2.3 Liquidity
CWCO has a Current Ratio of 5.72. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
CWCO's Current ratio of 5.72 is amongst the best of the industry. CWCO outperforms 100.00% of its industry peers.
A Quick Ratio of 5.47 indicates that CWCO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.47, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.72 | ||
| Quick Ratio | 5.47 |
3. Growth
3.1 Past
The earnings per share for CWCO have decreased strongly by -54.85% in the last year.
Measured over the past years, CWCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.02% on average per year.
Looking at the last year, CWCO shows a very negative growth in Revenue. The Revenue has decreased by -31.57% in the last year.
Measured over the past years, CWCO shows a quite strong growth in Revenue. The Revenue has been growing by 14.26% on average per year.
EPS 1Y (TTM)-54.85%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)-31.57%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-15.05%
3.2 Future
Based on estimates for the next years, CWCO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.89% on average per year.
CWCO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.34% yearly.
EPS Next Y-12.92%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.31%
Revenue Next 2Y23.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.49, CWCO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CWCO is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.48, CWCO is valued at the same level.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of CWCO.
CWCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWCO is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, CWCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.49 | ||
| Fwd PE | 18 |
4.2 Price Multiples
CWCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CWCO is more expensive than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CWCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.49 | ||
| EV/EBITDA | 15.86 |
4.3 Compensation for Growth
The decent profitability rating of CWCO may justify a higher PE ratio.
A more expensive valuation may be justified as CWCO's earnings are expected to grow with 23.89% in the coming years.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y23.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, CWCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, CWCO is paying slightly less dividend.
CWCO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of CWCO has a limited annual growth rate of 3.16%.
CWCO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CWCO pays out 24.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of CWCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.68%
EPS Next 2Y23.89%
EPS Next 3YN/A
29.29
+0.39 (+1.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.43%
Inst Owner Change9.32%
Ins Owners6.25%
Ins Owner Change2.63%
Market Cap466.30M
Analysts85
Price Target39.27 (34.07%)
Short Float %6.01%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0.4
Dividend Growth(5Y)3.16%
DP24.68%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.84%
Min EPS beat(2)-68.49%
Max EPS beat(2)36.8%
EPS beat(4)2
Avg EPS beat(4)-12.27%
Min EPS beat(4)-68.49%
Max EPS beat(4)36.8%
EPS beat(8)6
Avg EPS beat(8)17.27%
EPS beat(12)7
Avg EPS beat(12)1.78%
EPS beat(16)9
Avg EPS beat(16)-16.54%
Revenue beat(2)1
Avg Revenue beat(2)-7.39%
Min Revenue beat(2)-17.11%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)-6.58%
Min Revenue beat(4)-17.11%
Max Revenue beat(4)3.11%
Revenue beat(8)6
Avg Revenue beat(8)7.7%
Revenue beat(12)10
Avg Revenue beat(12)7.66%
Revenue beat(16)12
Avg Revenue beat(16)6.18%
PT rev (1m)0%
PT rev (3m)-1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)0%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.49 | ||
| Fwd PE | 18 | ||
| P/S | 3.64 | ||
| P/FCF | 13.49 | ||
| P/OCF | 11.02 | ||
| P/B | 2.19 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 15.86 |
EPS(TTM)0.93
EY3.18%
EPS(NY)1.63
Fwd EY5.55%
FCF(TTM)2.17
FCFY7.41%
OCF(TTM)2.66
OCFY9.08%
SpS8.04
BVpS13.4
TBVpS12.43
PEG (NY)N/A
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 12.44% | ||
| ROCE | 6.93% | ||
| ROIC | 5.94% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 13.4% | ||
| OM | 12% | ||
| PM (TTM) | 20.73% | ||
| GM | 34.42% | ||
| FCFM | 27% |
ROA(3y)9.39%
ROA(5y)6.14%
ROE(3y)10.97%
ROE(5y)7.15%
ROIC(3y)9.39%
ROIC(5y)6.99%
ROICexc(3y)13.56%
ROICexc(5y)9.95%
ROICexgc(3y)15.32%
ROICexgc(5y)11.26%
ROCE(3y)10.95%
ROCE(5y)8.15%
ROICexcg growth 3Y56.02%
ROICexcg growth 5Y13.92%
ROICexc growth 3Y54.78%
ROICexc growth 5Y13.87%
OM growth 3Y20.49%
OM growth 5Y-3.8%
PM growth 3Y153.94%
PM growth 5Y3.57%
GM growth 3Y-1.05%
GM growth 5Y-3.69%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.12% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 190.49% | ||
| Profit Quality | 130.25% | ||
| Current Ratio | 5.72 | ||
| Quick Ratio | 5.47 | ||
| Altman-Z | 9.43 |
F-Score5
WACC8.91%
ROIC/WACC0.67
Cap/Depr(3y)99.55%
Cap/Depr(5y)68.7%
Cap/Sales(3y)5.27%
Cap/Sales(5y)4.08%
Profit Quality(3y)117.23%
Profit Quality(5y)282.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-54.85%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-30.23%
EPS Next Y-12.92%
EPS Next 2Y23.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.57%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-15.05%
Revenue Next Year-3.31%
Revenue Next 2Y23.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-61.58%
EBIT growth 3Y51.91%
EBIT growth 5Y9.92%
EBIT Next Year8.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y149.18%
FCF growth 3Y75.89%
FCF growth 5Y20.64%
OCF growth 1Y91.87%
OCF growth 3Y73.68%
OCF growth 5Y19.16%