CALIFORNIA WATER SERVICE GRP (CWT)
US1307881029 - Common Stock
CWT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. CWT may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, CWT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CWT had positive earnings in the past year.
CWT had a positive operating cash flow in the past year.
Each year in the past 5 years CWT has 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 1.13%, CWT is doing worse than 78.57% of the companies in the same industry.
CWT has a worse Return On Equity (3.64%) than 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, CWT is doing worse than 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 5.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.64% | ||
| ROIC | 1.13% |
ROA(3y)2.06%
ROA(5y)2.21%
ROE(3y)6.5%
ROE(5y)7.62%
ROIC(3y)2.23%
ROIC(5y)2.7%
1.3 Margins
With a Profit Margin value of 6.53%, CWT is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CWT has declined.
The Operating Margin of CWT (7.80%) is worse than 78.57% of its industry peers.
In the last couple of years the Operating Margin of CWT has declined.
Looking at the Gross Margin, with a value of 66.09%, CWT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
CWT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.8% | ||
| PM (TTM) | 6.53% | ||
| GM | 66.09% |
OM growth 3Y-25.22%
OM growth 5Y-15.86%
PM growth 3Y-18.77%
PM growth 5Y-7.01%
GM growth 3Y-0.33%
GM growth 5Y0.06%
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
CWT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWT is higher compared to a year ago.
2.2 Solvency
CWT has an Altman-Z score of 0.85. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
CWT has a Altman-Z score (0.85) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that CWT is somewhat dependend on debt financing.
CWT has a Debt to Equity ratio of 0.86. This is in the better half of the industry: CWT outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.14
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.69 indicates that CWT may have some problems paying its short term obligations.
CWT's Current ratio of 0.69 is on the low side compared to the rest of the industry. CWT is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.65 indicates that CWT may have some problems paying its short term obligations.
CWT has a Quick ratio of 0.65. This is in the lower half of the industry: CWT underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for CWT have decreased strongly by -49.43% in the last year.
CWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.72% yearly.
The Revenue has decreased by -6.12% in the past year.
The Revenue has been growing slightly by 2.62% on average over the past years.
EPS 1Y (TTM)-49.43%
EPS 3Y-22.87%
EPS 5Y-6.72%
EPS growth Q2Q48.57%
Revenue 1Y (TTM)-6.12%
Revenue growth 3Y0.01%
Revenue growth 5Y2.62%
Revenue growth Q2Q6.76%
3.2 Future
The Earnings Per Share is expected to grow by 32.30% on average over the next years. This is a very strong growth
CWT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y175.48%
EPS Next 2Y64.52%
EPS Next 3Y43%
EPS Next 5Y32.3%
Revenue Next Year7.42%
Revenue Next 2Y5.88%
Revenue Next 3Y5.88%
Revenue Next 5Y4.38%
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
CWT is valuated quite expensively with a Price/Earnings ratio of 51.94.
Based on the Price/Earnings ratio, CWT is valued a bit more expensive than 78.57% of the companies in the same industry.
CWT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 18.86, which indicates a rather expensive current 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.
The average S&P500 Price/Forward Earnings ratio is at 21.60. CWT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.94 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWT indicates a slightly more expensive valuation: CWT is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.89 |
4.3 Compensation for Growth
CWT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CWT's earnings are expected to grow with 43.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y64.52%
EPS Next 3Y43%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.49%. Purely for dividend investing, there may be better candidates out there.
CWT's Dividend Yield is comparable with the industry average which is at 3.93.
CWT's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
On average, the dividend of CWT grows each year by 6.82%, which is quite nice.
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)6.82%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
113.73% of the earnings are spent on dividend by CWT. This is not a sustainable payout ratio.
The dividend of CWT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP113.73%
EPS Next 2Y64.52%
EPS Next 3Y43%
CALIFORNIA WATER SERVICE GRP
NYSE:CWT (4/23/2024, 7:04:00 PM)
After market: 46.23 0 (0%)46.23
+0.78 (+1.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.94 | ||
| Fwd PE | 18.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.8% | ||
| PM (TTM) | 6.53% | ||
| GM | 66.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-49.43%
EPS 3Y-22.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y175.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.12%
Revenue growth 3Y0.01%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y