GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
USA - NASDAQ:GWRS - US3794631024 - Common Stock
10.12 USD
+0.18 (+1.81%)
10.12 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to GWRS. GWRS was compared to 14 industry peers in the Water Utilities industry. While GWRS is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, GWRS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GWRS was profitable.
GWRS had a positive operating cash flow in the past year.
In the past 5 years GWRS has always been profitable.
In the past 5 years GWRS always reported a positive cash flow from operatings.
1.2 Ratios
GWRS has a worse Return On Assets (1.24%) than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 7.26%, GWRS is doing worse than 71.43% of the companies in the same industry.
With a Return On Invested Capital value of 1.57%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
GWRS had an Average Return On Invested Capital over the past 3 years of 2.09%. This is below the industry average of 4.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 7.26% | ||
| ROIC | 1.57% |
ROA(3y)1.78%
ROA(5y)1.39%
ROE(3y)13.66%
ROE(5y)11.29%
ROIC(3y)2.09%
ROIC(5y)2.02%
1.3 Margins
GWRS has a Profit Margin of 10.27%. This is in the lower half of the industry: GWRS underperforms 78.57% of its industry peers.
GWRS's Profit Margin has improved in the last couple of years.
GWRS has a Operating Margin of 16.84%. This is in the lower half of the industry: GWRS underperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of GWRS has declined.
The Gross Margin of GWRS (87.85%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of GWRS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 10.27% | ||
| GM | 87.85% |
OM growth 3Y2.05%
OM growth 5Y-2.04%
PM growth 3Y8.45%
PM growth 5Y11.91%
GM growth 3YN/A
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWRS is destroying value.
GWRS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GWRS has more shares outstanding
The debt/assets ratio for GWRS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
GWRS's Altman-Z score of 0.63 is on the low side compared to the rest of the industry. GWRS is outperformed by 85.71% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that GWRS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, GWRS is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.2
WACC7.8%
2.3 Liquidity
GWRS has a Current Ratio of 1.09. This is a normal value and indicates that GWRS is financially healthy and should not expect problems in meeting its short term obligations.
GWRS's Current ratio of 1.09 is fine compared to the rest of the industry. GWRS outperforms 64.29% of its industry peers.
A Quick Ratio of 1.09 indicates that GWRS should not have too much problems paying its short term obligations.
GWRS's Quick ratio of 1.09 is fine compared to the rest of the industry. GWRS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for GWRS have decreased strongly by -21.43% in the last year.
GWRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.57% yearly.
The Revenue has been growing slightly by 4.33% in the past year.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-21.43%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
3.2 Future
The Earnings Per Share is expected to grow by 8.11% on average over the next years. This is quite good.
Based on estimates for the next years, GWRS will show a small growth in Revenue. The Revenue will grow by 6.65% on average per year.
EPS Next Y-6.5%
EPS Next 2Y8.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.58%
Revenue Next 2Y6.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.00, the valuation of GWRS can be described as expensive.
GWRS's Price/Earnings ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of GWRS to the average of the S&P500 Index (27.32), we can say GWRS is valued expensively.
With a Price/Forward Earnings ratio of 36.08, GWRS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRS indicates a slightly more expensive valuation: GWRS is more expensive than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GWRS to the average of the S&P500 Index (22.89), we can say GWRS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 36.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y8.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, GWRS has a reasonable but not impressive dividend return.
GWRS's Dividend Yield is a higher than the industry average which is at 3.38.
GWRS's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of GWRS has a limited annual growth rate of 1.00%.
GWRS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GWRS decreased recently.
Dividend Growth(5Y)1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
136.17% of the earnings are spent on dividend by GWRS. This is not a sustainable payout ratio.
GWRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP136.17%
EPS Next 2Y8.11%
EPS Next 3YN/A
10.12
+0.18 (+1.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change7.18%
Ins Owners9.95%
Ins Owner Change8.51%
Market Cap278.00M
Analysts85
Price Target15.81 (56.23%)
Short Float %1.26%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend0.3
Dividend Growth(5Y)1%
DP136.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.38%
Min EPS beat(2)-1.96%
Max EPS beat(2)30.72%
EPS beat(4)2
Avg EPS beat(4)-7.9%
Min EPS beat(4)-67.32%
Max EPS beat(4)30.72%
EPS beat(8)5
Avg EPS beat(8)9.77%
EPS beat(12)8
Avg EPS beat(12)17.57%
EPS beat(16)11
Avg EPS beat(16)52.56%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.43%
Revenue beat(12)5
Avg Revenue beat(12)1.36%
Revenue beat(16)6
Avg Revenue beat(16)0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46 | ||
| Fwd PE | 36.08 | ||
| P/S | 5.12 | ||
| P/FCF | N/A | ||
| P/OCF | 16.31 | ||
| P/B | 3.62 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 16.71 |
EPS(TTM)0.22
EY2.17%
EPS(NY)0.28
Fwd EY2.77%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)0.62
OCFY6.13%
SpS1.98
BVpS2.79
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 7.26% | ||
| ROCE | 2.13% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.6% | ||
| ROICexgc | 1.66% | ||
| OM | 16.84% | ||
| PM (TTM) | 10.27% | ||
| GM | 87.85% | ||
| FCFM | N/A |
ROA(3y)1.78%
ROA(5y)1.39%
ROE(3y)13.66%
ROE(5y)11.29%
ROIC(3y)2.09%
ROIC(5y)2.02%
ROICexc(3y)2.13%
ROICexc(5y)2.09%
ROICexgc(3y)2.25%
ROICexgc(5y)2.22%
ROCE(3y)2.84%
ROCE(5y)2.75%
ROICexcg growth 3Y-2.27%
ROICexcg growth 5Y-2.71%
ROICexc growth 3Y-1.84%
ROICexc growth 5Y-2.29%
OM growth 3Y2.05%
OM growth 5Y-2.04%
PM growth 3Y8.45%
PM growth 5Y11.91%
GM growth 3YN/A
GM growth 5Y-1.02%
F-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 401.71% | ||
| Cap/Sales | 102.29% | ||
| Interest Coverage | 1.6 | ||
| Cash Conversion | 74.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 0.63 |
F-Score4
WACC7.8%
ROIC/WACC0.2
Cap/Depr(3y)259.99%
Cap/Depr(5y)214.68%
Cap/Sales(3y)59.8%
Cap/Sales(5y)49.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.43%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-14.29%
EPS Next Y-6.5%
EPS Next 2Y8.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
Revenue Next Year6.58%
Revenue Next 2Y6.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.44%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year160%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-331.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.35%
OCF growth 3Y2.23%
OCF growth 5Y13.49%