GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
NASDAQ:GWRS - Nasdaq - US3794631024 - Common Stock - Currency: USD
GWRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. GWRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. GWRS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GWRS was profitable.
GWRS had a positive operating cash flow in the past year.
Each year in the past 5 years GWRS has been profitable.
GWRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.28%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
With a Return On Equity value of 7.37%, GWRS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.64%, GWRS is doing worse than 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GWRS is below the industry average of 5.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 7.37% | ||
| ROIC | 1.64% |
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 10.63%. 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.
The Operating Margin of GWRS (17.40%) is worse than 71.43% of its industry peers.
GWRS's Operating Margin has declined in the last couple of years.
GWRS has a better Gross Margin (89.05%) 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 | 17.4% | ||
| PM (TTM) | 10.63% | ||
| GM | 89.05% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWRS is destroying value.
Compared to 1 year ago, GWRS has more shares outstanding
GWRS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GWRS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
GWRS's Altman-Z score of 0.68 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 1.54 is on the high side and indicates that GWRS has dependencies on debt financing.
GWRS's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. GWRS is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.2
WACC8%
2.3 Liquidity
A Current Ratio of 1.55 indicates that GWRS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, GWRS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that GWRS should not have too much problems paying its short term obligations.
GWRS has a Quick ratio of 1.55. This is in the better half of the industry: GWRS outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
GWRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.86%.
GWRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.57% yearly.
Looking at the last year, GWRS shows a small growth in Revenue. The Revenue has grown by 3.94% in the last year.
Measured over the past years, GWRS shows a quite strong growth in Revenue. The Revenue has been growing by 8.24% on average per year.
EPS 1Y (TTM)-17.86%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%7.3%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y-6.5%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.11%
Revenue Next 2Y5.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
The Price/Earnings ratio is 44.13, which means the current valuation is very expensive for GWRS.
78.57% of the companies in the same industry are cheaper than GWRS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GWRS to the average of the S&P500 Index (26.25), we can say GWRS is valued expensively.
Based on the Price/Forward Earnings ratio of 35.54, the valuation of GWRS can be described as expensive.
71.43% of the companies in the same industry are cheaper than GWRS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, GWRS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 35.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWRS indicates a slightly more expensive valuation: GWRS is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y9.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GWRS has a Yearly Dividend Yield of 3.04%.
GWRS's Dividend Yield is a higher than the industry average which is at 3.40.
Compared to an average S&P500 Dividend Yield of 2.38, GWRS pays a bit more dividend than the S&P500 average.
| 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
GWRS pays out 128.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GWRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP128.67%
EPS Next 2Y9.09%
EPS Next 3YN/A
10.15
+0.15 (+1.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.03%
Inst Owner Change14.56%
Ins Owners10.3%
Ins Owner Change8.69%
Market Cap278.62M
Analysts85
Price Target15.81 (55.76%)
Short Float %0.72%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend0.3
Dividend Growth(5Y)1%
DP128.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.3%
Min EPS beat(2)-67.32%
Max EPS beat(2)30.72%
EPS beat(4)2
Avg EPS beat(4)-10.97%
Min EPS beat(4)-67.32%
Max EPS beat(4)30.72%
EPS beat(8)5
Avg EPS beat(8)8.96%
EPS beat(12)9
Avg EPS beat(12)24.11%
EPS beat(16)12
Avg EPS beat(16)60.22%
Revenue beat(2)2
Avg Revenue beat(2)2.03%
Min Revenue beat(2)1.77%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.45%
Revenue beat(12)5
Avg Revenue beat(12)1.35%
Revenue beat(16)7
Avg Revenue beat(16)0.87%
PT rev (1m)0%
PT rev (3m)-7.74%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.42%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 35.54 | ||
| P/S | 5.2 | ||
| P/FCF | N/A | ||
| P/OCF | 13.15 | ||
| P/B | 3.61 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 16.48 |
EPS(TTM)0.23
EY2.27%
EPS(NY)0.29
Fwd EY2.81%
FCF(TTM)-0.75
FCFYN/A
OCF(TTM)0.77
OCFY7.61%
SpS1.95
BVpS2.81
TBVpS2.27
PEG (NY)N/A
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 7.37% | ||
| ROCE | 2.23% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.77% | ||
| ROICexgc | 1.84% | ||
| OM | 17.4% | ||
| PM (TTM) | 10.63% | ||
| GM | 89.05% | ||
| 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 | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 318.58% | ||
| Cap/Sales | 78.03% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 94.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 0.68 |
F-Score4
WACC8%
ROIC/WACC0.2
Cap/Depr(3y)264.26%
Cap/Depr(5y)217.24%
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)-17.86%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-33.33%
EPS Next Y-6.5%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.94%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%7.3%
Revenue Next Year6.11%
Revenue Next 2Y5.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.72%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year160%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-107.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.32%
OCF growth 3Y2.23%
OCF growth 5Y13.49%