CONSOLIDATED WATER CO-ORD SH (CWCO) Stock Fundamental Analysis
NASDAQ:CWCO - Nasdaq - KYG237731073 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to CWCO. CWCO was compared to 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make CWCO a good candidate 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.
Each year in the past 5 years CWCO has been profitable.
In the past 5 years CWCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.60%, CWCO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Equity of CWCO (13.44%) is better than 92.86% of its industry peers.
CWCO has a Return On Invested Capital of 7.10%. This is amongst the best in the industry. CWCO outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWCO is above the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 13.44% | ||
| ROIC | 7.1% |
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 (21.06%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CWCO has grown nicely.
CWCO's Operating Margin of 13.50% is on the low side compared to the rest of the industry. CWCO is outperformed by 78.57% of its industry peers.
CWCO's Operating Margin has declined in the last couple of years.
CWCO has a Gross Margin of 34.06%. This is comparable to the rest of the industry: CWCO outperforms 50.00% of its industry peers.
CWCO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.5% | ||
| PM (TTM) | 21.06% | ||
| GM | 34.06% |
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
CWCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CWCO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWCO has more shares outstanding
CWCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.72 indicates that CWCO is not in any danger for bankruptcy at the moment.
CWCO's Altman-Z score of 8.72 is amongst the best of the industry. CWCO outperforms 92.86% of its industry peers.
The Debt to FCF ratio of CWCO is 0.01, which is an excellent value as it means it would take CWCO, only 0.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.01, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CWCO has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
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 | 0.01 | ||
| Altman-Z | 8.72 |
ROIC/WACC0.8
WACC8.83%
2.3 Liquidity
CWCO has a Current Ratio of 6.33. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.33, CWCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CWCO has a Quick Ratio of 5.97. This indicates that CWCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.97, CWCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.33 | ||
| Quick Ratio | 5.97 |
3. Growth
3.1 Past
The earnings per share for CWCO have decreased strongly by -43.32% 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 -25.66% in the last year.
CWCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.26% yearly.
EPS 1Y (TTM)-43.32%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)-25.66%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-46.65%
3.2 Future
CWCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.62% yearly.
The Revenue is expected to grow by 23.29% on average over the next years. This is a very strong growth
EPS Next Y-16.76%
EPS Next 2Y25.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.34%
Revenue Next 2Y23.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.92, which indicates a rather expensive current valuation of CWCO.
The rest of the industry has a similar Price/Earnings ratio as CWCO.
The average S&P500 Price/Earnings ratio is at 28.88. CWCO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 26.34 indicates a quite expensive valuation of CWCO.
64.29% of the companies in the same industry are cheaper than CWCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.20. CWCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 26.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWCO is valued cheaper than 85.71% of the companies in the same industry.
CWCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CWCO is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
CWCO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CWCO's earnings are expected to grow with 25.62% in the coming years.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y25.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWCO has a Yearly Dividend Yield of 1.84%.
Compared to an average industry Dividend Yield of 3.35, CWCO is paying slightly less dividend.
CWCO's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of CWCO has a limited annual growth rate of 3.16%.
CWCO has paid a dividend for at least 10 years, which is a reliable track record.
CWCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.16%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
CWCO pays out 22.33% of its income as dividend. This is a sustainable payout ratio.
CWCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.33%
EPS Next 2Y25.62%
EPS Next 3YN/A
23.24
-0.47 (-1.98%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.6%
Inst Owner Change-1.91%
Ins Owners6.01%
Ins Owner Change3.55%
Market Cap369.98M
Analysts85
Price Target39.78 (71.17%)
Short Float %3.41%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.4
Dividend Growth(5Y)3.16%
DP22.33%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.42%
Min EPS beat(2)-68.49%
Max EPS beat(2)7.65%
EPS beat(4)2
Avg EPS beat(4)-19.09%
Min EPS beat(4)-68.49%
Max EPS beat(4)9.5%
EPS beat(8)6
Avg EPS beat(8)15.25%
EPS beat(12)7
Avg EPS beat(12)0.95%
EPS beat(16)9
Avg EPS beat(16)-16.92%
Revenue beat(2)1
Avg Revenue beat(2)-7%
Min Revenue beat(2)-17.11%
Max Revenue beat(2)3.11%
Revenue beat(4)2
Avg Revenue beat(4)-6.69%
Min Revenue beat(4)-17.11%
Max Revenue beat(4)3.11%
Revenue beat(8)6
Avg Revenue beat(8)9.17%
Revenue beat(12)10
Avg Revenue beat(12)8.48%
Revenue beat(16)11
Avg Revenue beat(16)5.46%
PT rev (1m)1.3%
PT rev (3m)1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.78%
Revenue NY rev (1m)-13.81%
Revenue NY rev (3m)-13.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 26.34 | ||
| P/S | 2.76 | ||
| P/FCF | 12.41 | ||
| P/OCF | 10.13 | ||
| P/B | 1.76 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 10.93 |
EPS(TTM)1.06
EY4.56%
EPS(NY)0.88
Fwd EY3.8%
FCF(TTM)1.87
FCFY8.06%
OCF(TTM)2.29
OCFY9.87%
SpS8.41
BVpS13.19
TBVpS12.07
PEG (NY)N/A
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 13.44% | ||
| ROCE | 8.28% | ||
| ROIC | 7.1% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 15.32% | ||
| OM | 13.5% | ||
| PM (TTM) | 21.06% | ||
| GM | 34.06% | ||
| FCFM | 22.26% |
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)15.43%
ROICexgc(5y)11.33%
ROCE(3y)10.95%
ROCE(5y)8.15%
ROICexcg growth 3Y57.14%
ROICexcg growth 5Y14.41%
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 100.07% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 2127.88 | ||
| Cash Conversion | 147.37% | ||
| Profit Quality | 105.67% | ||
| Current Ratio | 6.33 | ||
| Quick Ratio | 5.97 | ||
| Altman-Z | 8.72 |
F-Score5
WACC8.83%
ROIC/WACC0.8
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)-43.32%
EPS 3Y175.23%
EPS 5Y14.02%
EPS Q2Q%-85.71%
EPS Next Y-16.76%
EPS Next 2Y25.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-25.66%
Revenue growth 3Y26.07%
Revenue growth 5Y14.26%
Sales Q2Q%-46.65%
Revenue Next Year-6.34%
Revenue Next 2Y23.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-51.34%
EBIT growth 3Y51.91%
EBIT growth 5Y9.92%
EBIT Next Year3.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y920.19%
FCF growth 3Y75.89%
FCF growth 5Y20.64%
OCF growth 1Y358.12%
OCF growth 3Y73.68%
OCF growth 5Y19.16%