CALIFORNIA WATER SERVICE GRP (CWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWT - US1307881029 - Common Stock
42.31 USD
-1.29 (-2.96%)
42.31 USD
0 (0%)
Taking everything into account, CWT scores 3 out of 10 in our fundamental rating. CWT was compared to 15 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 quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years CWT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CWT (2.52%) is worse than 60.00% of its industry peers.
CWT's Return On Equity of 8.21% is in line compared 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.
Measured over the past 3 years, the Average Return On Invested Capital for CWT is below the industry average of 4.77%.
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 (13.71%) which is comparable to the rest of the industry.
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.
Looking at the Gross Margin, with a value of 70.17%, CWT is in the better half of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWT is destroying value.
CWT has more shares outstanding than it did 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
CWT has an Altman-Z score of 0.83. This is a bad value and indicates that CWT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, CWT is doing worse than 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.44
WACC7.48%
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.
Looking at the Current ratio, with a value of 0.53, CWT is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that CWT may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, CWT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for CWT have decreased strongly by -33.82% in the last year.
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 strong growth in Revenue. In the last year, the Revenue has grown by 30.48%.
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)-33.82%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%0%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%3.9%
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.
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-28.45%
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
EPS Next 5Y0.68%
Revenue Next Year-0.78%
Revenue Next 2Y2.77%
Revenue Next 3Y3.04%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 18.48, which indicates a rather expensive current valuation of CWT.
Based on the Price/Earnings ratio, CWT is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.28. CWT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.60 indicates a correct valuation of CWT.
Based on the Price/Forward Earnings ratio, CWT is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CWT to the average of the S&P500 Index (23.52), we can say CWT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.6 |
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 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
CWT's earnings are expected to decrease with -6.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
5. Dividend
5.1 Amount
CWT has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, CWT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, CWT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of CWT is nicely growing with an annual growth rate of 7.26%!
CWT has paid a dividend for at least 10 years, which is 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
52.43% of the earnings are spent on dividend by CWT. 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-11.72%
EPS Next 3Y-6.26%
42.31
-1.29 (-2.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.19%
Inst Owner Change1.44%
Ins Owners0.64%
Ins Owner Change-0.22%
Market Cap2.52B
Revenue(TTM)1.04B
Net Income(TTM)135.84M
Analysts87.5
Price Target52.7 (24.56%)
Short Float %2.08%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)-6.49%
PT rev (3m)-6.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.51%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.6 | ||
| P/S | 2.54 | ||
| P/FCF | N/A | ||
| P/OCF | 9.8 | ||
| P/B | 1.52 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)2.29
EY5.41%
EPS(NY)2.55
Fwd EY6.02%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)4.32
OCFY10.21%
SpS16.63
BVpS27.77
TBVpS27.15
PEG (NY)N/A
PEG (5Y)0.92
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 | 0.83 |
F-Score5
WACC7.48%
ROIC/WACC0.44
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)-33.82%
EPS 3Y18.6%
EPS 5Y20.08%
EPS Q2Q%0%
EPS Next Y-28.45%
EPS Next 2Y-11.72%
EPS Next 3Y-6.26%
EPS Next 5Y0.68%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y9.44%
Revenue growth 5Y7.73%
Sales Q2Q%3.9%
Revenue Next Year-0.78%
Revenue Next 2Y2.77%
Revenue Next 3Y3.04%
Revenue Next 5Y4.01%
EBIT growth 1Y10.29%
EBIT growth 3Y26.29%
EBIT growth 5Y17.67%
EBIT Next Year53.99%
EBIT Next 3Y23.3%
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 3 / 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 18.48 and the Price/Book (PB) ratio is 1.52.
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%.