CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
NYSE:CWT - New York Stock Exchange, Inc. - US1307881029 - Common Stock - Currency: USD
Taking everything into account, CWT scores 3 out of 10 in our fundamental rating. CWT was compared to 14 industry peers in the Water Utilities industry. CWT has a medium profitability rating, but doesn't score so well on its financial health evaluation. CWT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CWT had positive earnings in the past year.
In the past year CWT had a positive cash flow from operations.
In the past 5 years CWT has always been profitable.
Each year in the past 5 years CWT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.55%, CWT is doing worse than 64.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.24%, CWT is doing worse than 64.29% of the companies in the same industry.
The Return On Invested Capital of CWT (3.29%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CWT is below the industry average of 5.08%.
The last Return On Invested Capital (3.29%) for CWT is above the 3 year average (2.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.24% | ||
| ROIC | 3.29% |
ROA(3y)2.35%
ROA(5y)2.54%
ROE(3y)7.53%
ROE(5y)8.34%
ROIC(3y)2.65%
ROIC(5y)2.93%
1.3 Margins
CWT's Profit Margin of 13.84% is on the low side compared to the rest of the industry. CWT is outperformed by 64.29% of its industry peers.
In the last couple of years the Profit Margin of CWT has grown nicely.
CWT's Operating Margin of 21.18% is on the low side compared to the rest of the industry. CWT is outperformed by 64.29% of its industry peers.
CWT's Operating Margin has improved in the last couple of years.
CWT's Gross Margin of 70.34% is fine compared to the rest of the industry. CWT outperforms 71.43% of its industry peers.
CWT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.18% | ||
| PM (TTM) | 13.84% | ||
| GM | 70.34% |
OM growth 3Y15.39%
OM growth 5Y9.23%
PM growth 3Y12.91%
PM growth 5Y15.82%
GM growth 3Y2.57%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
CWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CWT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWT has more shares outstanding
CWT has a better debt/assets ratio than last year.
2.2 Solvency
CWT has an Altman-Z score of 0.89. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CWT (0.89) is worse than 64.29% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that CWT is somewhat dependend on debt financing.
The Debt to Equity ratio of CWT (0.85) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.41
WACC8.02%
2.3 Liquidity
CWT has a Current Ratio of 0.53. This is a bad value and indicates that CWT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.53, CWT is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that CWT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, CWT is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
CWT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.00%.
CWT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.08% yearly.
The Revenue has been growing slightly by 3.83% in the past year.
Measured over the past years, CWT shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)-4%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%-71.9%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%-24.66%
3.2 Future
The Earnings Per Share is expected to grow by 0.68% on average over the next years.
CWT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y-27.72%
EPS Next 2Y-11.3%
EPS Next 3Y-3.6%
EPS Next 5Y0.68%
Revenue Next Year-2.62%
Revenue Next 2Y2.3%
Revenue Next 3Y3.13%
Revenue Next 5Y4.01%
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 decreasing.
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
With a Price/Earnings ratio of 19.30, CWT is valued on the expensive side.
64.29% of the companies in the same industry are more expensive than CWT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. CWT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.01, the valuation of CWT can be described as rather expensive.
CWT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWT is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CWT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
CWT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CWT is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
A cheap valuation may be justified as CWT's earnings are expected to decrease with -3.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-11.3%
EPS Next 3Y-3.6%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
CWT's Dividend Yield is comparable with the industry average which is at 3.48.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of CWT is nicely growing with an annual growth rate of 7.26%!
CWT has been paying a dividend for at least 10 years, so it has a reliable track record.
CWT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.26%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CWT pays out 51.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
CWT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.8%
EPS Next 2Y-11.3%
EPS Next 3Y-3.6%
46.33
-0.35 (-0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.71%
Inst Owner Change3.16%
Ins Owners0.54%
Ins Owner Change19.31%
Market Cap2.76B
Analysts86.67
Price Target58.14 (25.49%)
Short Float %1.16%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend1.12
Dividend Growth(5Y)7.26%
DP51.8%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.09%
Min EPS beat(2)65.43%
Max EPS beat(2)120.74%
EPS beat(4)3
Avg EPS beat(4)62.16%
Min EPS beat(4)-2.57%
Max EPS beat(4)120.74%
EPS beat(8)4
Avg EPS beat(8)30.27%
EPS beat(12)5
Avg EPS beat(12)-965.21%
EPS beat(16)7
Avg EPS beat(16)-723.29%
Revenue beat(2)1
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-6.26%
Max Revenue beat(2)1.67%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)11.85%
Revenue beat(8)5
Avg Revenue beat(8)2.28%
Revenue beat(12)6
Avg Revenue beat(12)-1.21%
Revenue beat(16)8
Avg Revenue beat(16)-2.43%
PT rev (1m)0%
PT rev (3m)0.88%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)0.69%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.25%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 18.01 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 9.12 | ||
| P/B | 1.69 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)2.4
EY5.18%
EPS(NY)2.57
Fwd EY5.55%
FCF(TTM)-2.83
FCFYN/A
OCF(TTM)5.08
OCFY10.97%
SpS16.28
BVpS27.35
TBVpS26.73
PEG (NY)N/A
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.24% | ||
| ROCE | 4.41% | ||
| ROIC | 3.29% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.34% | ||
| OM | 21.18% | ||
| PM (TTM) | 13.84% | ||
| GM | 70.34% | ||
| FCFM | N/A |
ROA(3y)2.35%
ROA(5y)2.54%
ROE(3y)7.53%
ROE(5y)8.34%
ROIC(3y)2.65%
ROIC(5y)2.93%
ROICexc(3y)2.68%
ROICexc(5y)2.97%
ROICexgc(3y)2.71%
ROICexgc(5y)3.01%
ROCE(3y)3.47%
ROCE(5y)3.91%
ROICexcg growth 3Y11.66%
ROICexcg growth 5Y6.46%
ROICexc growth 3Y11.75%
ROICexc growth 5Y6.29%
OM growth 3Y15.39%
OM growth 5Y9.23%
PM growth 3Y12.91%
PM growth 5Y15.82%
GM growth 3Y2.57%
GM growth 5Y1.83%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 343.29% | ||
| Cap/Sales | 48.57% | ||
| Interest Coverage | 3.64 | ||
| Cash Conversion | 88.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.89 |
F-Score5
WACC8.02%
ROIC/WACC0.41
Cap/Depr(3y)313.97%
Cap/Depr(5y)300.14%
Cap/Sales(3y)44.14%
Cap/Sales(5y)41.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%-71.9%
EPS Next Y-27.72%
EPS Next 2Y-11.3%
EPS Next 3Y-3.6%
EPS Next 5Y0.68%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%-24.66%
Revenue Next Year-2.62%
Revenue Next 2Y2.3%
Revenue Next 3Y3.13%
Revenue Next 5Y4.01%
EBIT growth 1Y30.55%
EBIT growth 3Y26.29%
EBIT growth 5Y17.67%
EBIT Next Year52.07%
EBIT Next 3Y24.27%
EBIT Next 5Y18.3%
FCF growth 1Y-28.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y43.8%
OCF growth 3Y7.87%
OCF growth 5Y11.5%