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. There are concerns on the financial health of GWRS while its profitability can be described as average. GWRS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWRS had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.28%, GWRS is doing worse than 78.57% of the companies in the same industry.
GWRS's Return On Equity of 7.37% is on the low side compared to the rest of the industry. GWRS is outperformed by 71.43% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for GWRS is below the industry average of 5.00%.
| 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
The Profit Margin of GWRS (10.63%) is worse than 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.
In the last couple of years the Operating Margin of GWRS has declined.
GWRS has a Gross Margin of 89.05%. This is amongst the best in the industry. GWRS outperforms 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
GWRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GWRS has been increased compared to 1 year ago.
Compared to 5 years ago, GWRS has more shares outstanding
GWRS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
GWRS has a Altman-Z score of 0.69. This is amonst the worse of the industry: GWRS underperforms 85.71% of its industry peers.
GWRS has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.54, GWRS is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.2
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.55 indicates that GWRS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.55, GWRS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
GWRS has a Quick Ratio of 1.55. This is a normal value and indicates that GWRS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.55, GWRS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 3.94% 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)-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 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-8.62%
EPS Next 2Y8.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.77%
Revenue Next 2Y6.65%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.26, which means the current valuation is very expensive for GWRS.
Compared to the rest of the industry, the Price/Earnings ratio of GWRS indicates a slightly more expensive valuation: GWRS is more expensive than 78.57% of the companies listed in the same industry.
GWRS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.48.
GWRS is valuated quite expensively with a Price/Forward Earnings ratio of 36.29.
GWRS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.52. GWRS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 36.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y8.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, GWRS has a reasonable but not impressive dividend return.
GWRS's Dividend Yield is a higher than the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.34, GWRS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of GWRS has a limited annual growth rate of 1.00%.
GWRS has paid a dividend for at least 10 years, which is a reliable track record.
GWRS has decreased its dividend 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 2Y8.11%
EPS Next 3YN/A
10.18
-0.14 (-1.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners27.88%
Inst Owner Change0%
Ins Owners10.02%
Ins Owner Change8.51%
Market Cap279.44M
Analysts85
Price Target15.81 (55.3%)
Short Float %0.94%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)-6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 36.29 | ||
| P/S | 5.22 | ||
| P/FCF | N/A | ||
| P/OCF | 13.18 | ||
| P/B | 3.62 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 16.69 |
EPS(TTM)0.23
EY2.26%
EPS(NY)0.28
Fwd EY2.76%
FCF(TTM)-0.75
FCFYN/A
OCF(TTM)0.77
OCFY7.58%
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 | 0.69 |
F-Score4
WACC8.17%
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-8.62%
EPS Next 2Y8.11%
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 Year6.77%
Revenue Next 2Y6.65%
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%