CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - NYSE:CWT - US1307881029 - Common Stock
49.36 USD
-0.26 (-0.52%)
49.36 USD
0 (0%)
Overall CWT gets a fundamental rating of 3 out of 10. We evaluated CWT against 15 industry peers in the Water Utilities industry. While CWT is still in line with the averages on profitability rating, there are concerns on its financial health. CWT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CWT was profitable.
CWT had a positive operating cash flow in the past year.
In the past 5 years CWT has always been profitable.
CWT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.52%, CWT is doing worse than 60.00% of the companies in the same industry.
CWT has a Return On Equity of 8.21%. This is comparable to the rest of the industry: CWT outperforms 46.67% of its industry peers.
CWT's Return On Invested Capital of 3.26% is on the low side compared to the rest of the industry. CWT is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWT is below the industry average of 4.85%.
The 3 year average ROIC (2.65%) for CWT is below the current ROIC(3.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 8.21% | ||
| ROIC | 3.26% |
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 has a Profit Margin of 13.71%. This is comparable to the rest of the industry: CWT outperforms 46.67% of its industry peers.
In the last couple of years the Profit Margin of CWT has grown nicely.
The Operating Margin of CWT (21.11%) is worse than 60.00% of its industry peers.
CWT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.17%, CWT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
CWT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.11% | ||
| PM (TTM) | 13.71% | ||
| GM | 70.17% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWT is destroying value.
Compared to 1 year ago, CWT has more shares outstanding
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.
With a Altman-Z score value of 0.89, CWT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
CWT has a Debt/Equity ratio of 0.88. This is a neutral value indicating CWT is somewhat dependend on debt financing.
The Debt to Equity ratio of CWT (0.88) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.41
WACC7.96%
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.
CWT's Current ratio of 0.53 is on the low side compared to the rest of the industry. CWT is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.50 indicates that CWT may have some problems paying its short term obligations.
CWT's Quick ratio of 0.50 is on the low side compared to the rest of the industry. CWT is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CWT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.42%.
The Earnings Per Share has been growing by 20.08% on average over the past years. This is a very strong growth
Looking at the last year, CWT shows a small growth in Revenue. The Revenue has grown by 0.62% in the last 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)-24.42%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%1.43%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%8.45%
3.2 Future
CWT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.68% yearly.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y-25.49%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue Next Year-0.39%
Revenue Next 2Y2.87%
Revenue Next 3Y2.55%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.55, which indicates a rather expensive current valuation of CWT.
Based on the Price/Earnings ratio, CWT is valued a bit cheaper than 66.67% of the companies in the same industry.
CWT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.02, which indicates a rather expensive current valuation of CWT.
CWT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWT is cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CWT to the average of the S&P500 Index (22.88), we can say CWT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWT is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as CWT's earnings are expected to decrease with -5.53% in the coming years.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, CWT has a reasonable but not impressive dividend return.
CWT's Dividend Yield is comparable with the industry average which is at 3.16.
Compared to an average S&P500 Dividend Yield of 2.30, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.26%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
52.43% of the earnings are spent on dividend by CWT. 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.
DP52.43%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
49.36
-0.26 (-0.52%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.79%
Inst Owner Change0%
Ins Owners0.64%
Ins Owner Change-0.41%
Market Cap2.94B
Revenue(TTM)990.68M
Net Income(TTM)135.84M
Analysts87.5
Price Target56.36 (14.18%)
Short Float %1.39%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.12
Dividend Growth(5Y)7.26%
DP52.43%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.96%
Min EPS beat(2)25.08%
Max EPS beat(2)42.83%
EPS beat(4)3
Avg EPS beat(4)32.7%
Min EPS beat(4)-2.57%
Max EPS beat(4)65.43%
EPS beat(8)5
Avg EPS beat(8)32.34%
EPS beat(12)6
Avg EPS beat(12)-966.51%
EPS beat(16)7
Avg EPS beat(16)-731.07%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-6.26%
Max Revenue beat(2)7.75%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)7.75%
Revenue beat(8)6
Avg Revenue beat(8)5.45%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)8
Avg Revenue beat(16)-2.22%
PT rev (1m)0%
PT rev (3m)-3.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)0%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.02 | ||
| P/S | 2.97 | ||
| P/FCF | N/A | ||
| P/OCF | 11.43 | ||
| P/B | 1.78 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)2.29
EY4.64%
EPS(NY)2.6
Fwd EY5.26%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY8.75%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)1.07
Graham Number37.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 8.21% | ||
| ROCE | 4.44% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 3.31% | ||
| OM | 21.11% | ||
| PM (TTM) | 13.71% | ||
| GM | 70.17% | ||
| 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%
ROICexgc growth 3Y11.66%
ROICexgc 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 | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 346.39% | ||
| Cap/Sales | 49.05% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.89 |
F-Score5
WACC7.96%
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)-24.42%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%1.43%
EPS Next Y-25.49%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
EPS Next 5Y0.68%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%8.45%
Revenue Next Year-0.39%
Revenue Next 2Y2.87%
Revenue Next 3Y2.55%
Revenue Next 5Y4.01%
EBIT growth 1Y10.29%
EBIT growth 3Y26.29%
EBIT growth 5Y17.67%
EBIT Next Year54.16%
EBIT Next 3Y23.89%
EBIT Next 5Y18.3%
FCF growth 1Y-35.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.44%
OCF growth 3Y7.87%
OCF growth 5Y11.5%
CALIFORNIA WATER SERVICE GRP / CWT FAQ
What is the fundamental rating for CWT stock?
ChartMill assigns a fundamental rating of 3 / 10 to CWT.
What is the valuation status of CALIFORNIA WATER SERVICE GRP (CWT) stock?
ChartMill assigns a valuation rating of 2 / 10 to CALIFORNIA WATER SERVICE GRP (CWT). This can be considered as Overvalued.
How profitable is CALIFORNIA WATER SERVICE GRP (CWT) stock?
CALIFORNIA WATER SERVICE GRP (CWT) has a profitability rating of 5 / 10.
What is the valuation of CALIFORNIA WATER SERVICE GRP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CALIFORNIA WATER SERVICE GRP (CWT) is 21.55 and the Price/Book (PB) ratio is 1.78.
Can you provide the dividend sustainability for CWT stock?
The dividend rating of CALIFORNIA WATER SERVICE GRP (CWT) is 5 / 10 and the dividend payout ratio is 52.43%.