CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - NYSE:CWT - US1307881029 - Common Stock
45.4 USD
+0.79 (+1.77%)
45.4 USD
0 (0%)
Taking everything into account, CWT scores 4 out of 10 in our fundamental rating. CWT was compared to 14 industry peers in the Water Utilities industry. There are concerns on the financial health of CWT while its profitability can be described as average. CWT is valued correctly, but 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.
CWT had positive earnings in each of the past 5 years.
CWT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.52%, CWT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
With a Return On Equity value of 8.21%, CWT perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
CWT has a Return On Invested Capital (3.26%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 4.98%.
The last Return On Invested Capital (3.26%) for CWT is above the 3 year average (2.65%), which is a sign of increasing profitability.
| 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 (13.71%) which is in line with its industry peers.
CWT's Profit Margin has improved in the last couple of years.
The Operating Margin of CWT (21.11%) is worse than 64.29% of its industry peers.
CWT's Operating Margin has improved in the last couple of years.
CWT's Gross Margin of 70.17% 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 | 21.11% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWT is destroying value.
The number of shares outstanding for CWT has been increased compared to 1 year ago.
CWT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that CWT is in the distress zone and has some risk of bankruptcy.
CWT has a worse Altman-Z score (0.85) than 64.29% of its industry peers.
CWT has a Debt/Equity ratio of 0.88. This is a neutral value indicating CWT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.88, CWT is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.43
WACC7.65%
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.
The Current ratio of CWT (0.53) is worse than 78.57% of its industry peers.
CWT has a Quick 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.
The Quick ratio of CWT (0.50) is worse than 78.57% 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%.
CWT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.08% yearly.
CWT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.62%.
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
Based on estimates for the next years, CWT will show a small growth in Earnings Per Share. The EPS will grow by 0.68% on average per year.
Based on estimates for the next years, CWT will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
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.
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
Based on the Price/Earnings ratio of 19.83, the valuation of CWT can be described as rather expensive.
71.43% 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 27.86. CWT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.49 indicates a rather expensive valuation of CWT.
Based on the Price/Forward Earnings ratio, CWT is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, CWT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWT indicates a rather cheap valuation: CWT is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
CWT has a very decent profitability rating, which may justify a higher PE ratio.
CWT's earnings are expected to decrease with -5.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
CWT's Dividend Yield is comparable with the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.44, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
CWT pays out 52.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CWT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.43%
EPS Next 2Y-10.9%
EPS Next 3Y-5.53%
45.4
+0.79 (+1.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.79%
Inst Owner Change-0.79%
Ins Owners0.64%
Ins Owner Change-0.41%
Market Cap2.70B
Analysts87.5
Price Target56.36 (24.14%)
Short Float %1.56%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)3.17%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 17.49 | ||
| P/S | 2.73 | ||
| P/FCF | N/A | ||
| P/OCF | 10.51 | ||
| P/B | 1.63 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 10.97 |
EPS(TTM)2.29
EY5.04%
EPS(NY)2.6
Fwd EY5.72%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY9.51%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.99
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%
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 | 0.88 | ||
| 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 | 0.85 |
F-Score5
WACC7.65%
ROIC/WACC0.43
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%