GLOBAL WATER RESOURCES INC (GWRS)
US3794631024 - Common Stock
Taking everything into account, GWRS scores 4 out of 10 in our fundamental rating. 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. GWRS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWRS had positive earnings in the past year.
In the past year GWRS had a positive cash flow from operations.
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
GWRS has a Return On Assets of 2.21%. This is in the lower half of the industry: GWRS underperforms 64.29% of its industry peers.
With an excellent Return On Equity value of 16.43%, GWRS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of GWRS (2.82%) is worse than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GWRS is below the industry average of 5.15%.
The last Return On Invested Capital (2.82%) for GWRS is above the 3 year average (2.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 16.43% | ||
| ROIC | 2.82% |
ROA(3y)1.71%
ROA(5y)1.27%
ROE(3y)13.62%
ROE(5y)10.66%
ROIC(3y)2.28%
ROIC(5y)2.23%
1.3 Margins
The Profit Margin of GWRS (15.06%) is worse than 64.29% of its industry peers.
In the last couple of years the Profit Margin of GWRS has grown nicely.
GWRS has a Operating Margin of 23.17%. This is comparable to the rest of the industry: GWRS outperforms 42.86% of its industry peers.
GWRS's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.17% | ||
| PM (TTM) | 15.06% | ||
| GM | N/A |
OM growth 3Y6.83%
OM growth 5Y-2.35%
PM growth 3Y73.67%
PM growth 5Y11.52%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
GWRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GWRS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GWRS has more shares outstanding
Compared to 1 year ago, GWRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
GWRS's Altman-Z score of 0.85 is on the low side compared to the rest of the industry. GWRS is outperformed by 64.29% of its industry peers.
GWRS has a debt to FCF ratio of 34.90. This is a negative value and a sign of low solvency as GWRS would need 34.90 years to pay back of all of its debts.
GWRS's Debt to FCF ratio of 34.90 is amongst the best of the industry. GWRS outperforms 85.71% of its industry peers.
GWRS has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
GWRS has a Debt to Equity ratio of 2.13. This is amonst the worse of the industry: GWRS underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 34.9 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.35
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.82 indicates that GWRS may have some problems paying its short term obligations.
The Current ratio of GWRS (0.82) is worse than 71.43% of its industry peers.
A Quick Ratio of 0.82 indicates that GWRS may have some problems paying its short term obligations.
The Quick ratio of GWRS (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
GWRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
Looking at the last year, GWRS shows a quite strong growth in Revenue. The Revenue has grown by 18.56% in the last year.
Measured over the past years, GWRS shows a quite strong growth in Revenue. The Revenue has been growing by 8.34% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y45.98%
EPS 5Y31.95%
EPS growth Q2Q75%
Revenue 1Y (TTM)18.56%
Revenue growth 3Y11.14%
Revenue growth 5Y8.34%
Revenue growth Q2Q11.42%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y9.29%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.31%
Revenue Next 2Y4.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 45.07, GWRS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GWRS is valued a bit 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 (27.73), we can say GWRS is valued expensively.
A Price/Forward Earnings ratio of 41.24 indicates a quite expensive valuation of GWRS.
Based on the Price/Forward Earnings ratio, GWRS is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
GWRS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.07 | ||
| Fwd PE | 41.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than 64.29% of the companies in the same industry.
GWRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GWRS is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.04 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GWRS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.85
PEG (5Y)1.41
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GWRS has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
GWRS's Dividend Yield is comparable with the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.41, GWRS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of GWRS has a limited annual growth rate of 1.19%.
GWRS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)1.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
89.96% of the earnings are spent on dividend by GWRS. This is not a sustainable payout ratio.
The dividend of GWRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP89.96%
EPS Next 2Y11.29%
EPS Next 3YN/A
GLOBAL WATER RESOURCES INC
NASDAQ:GWRS (5/6/2024, 3:05:39 PM)
After market: 12.62 0 (0%)12.62
-0.14 (-1.1%)
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 Cap305.15M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)
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EPS beat(4)
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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)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 45.07 | ||
| Fwd PE | 41.24 | ||
| 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)4.85
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 16.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.17% | ||
| PM (TTM) | 15.06% | ||
| GM | N/A | ||
| 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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| 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)16.67%
EPS 3Y45.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.56%
Revenue growth 3Y11.14%
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