GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
USA - NASDAQ:GWRS - US3794631024 - Common Stock
10.17 USD
-0.08 (-0.78%)
10.5 USD
+0.33 (+3.24%)
Taking everything into account, GWRS scores 3 out of 10 in our fundamental rating. GWRS was compared to 15 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.
In the past year GWRS had a positive cash flow from operations.
GWRS had positive earnings in each of the past 5 years.
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 1.24%, GWRS is doing worse than 73.33% of the companies in the same industry.
GWRS has a Return On Equity of 7.26%. This is in the lower half of the industry: GWRS underperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.57%, GWRS is doing worse than 80.00% of the companies in the same industry.
GWRS had an Average Return On Invested Capital over the past 3 years of 2.09%. This is below the industry average of 4.86%.
| 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's Profit Margin of 10.27% is on the low side compared to the rest of the industry. GWRS is outperformed by 73.33% of its industry peers.
GWRS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 16.84%, GWRS is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
GWRS's Operating Margin has declined in the last couple of years.
GWRS's Gross Margin of 87.85% is amongst the best of 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 | 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
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.
The number of shares outstanding for GWRS has been increased compared to 5 years ago.
GWRS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that GWRS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.65, GWRS is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
GWRS has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.52, GWRS is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.21
WACC7.56%
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 in line compared to the rest of the industry. GWRS outperforms 60.00% of its industry peers.
GWRS has a Quick 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.
The Quick ratio of GWRS (1.09) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 24.57% on average over the past years. This is a very strong growth
GWRS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.33%.
GWRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.24% yearly.
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
Based on estimates for the next years, GWRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
Based on estimates for the next years, GWRS will show a small growth in Revenue. The Revenue will grow by 7.05% on average per year.
EPS Next Y-9.33%
EPS Next 2Y9.09%
EPS Next 3Y21.31%
EPS Next 5Y15.33%
Revenue Next Year6.87%
Revenue Next 2Y7.63%
Revenue Next 3Y10.45%
Revenue Next 5Y7.05%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 46.23 indicates a quite expensive valuation of GWRS.
Based on the Price/Earnings ratio, GWRS is valued a bit more expensive than 73.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of GWRS to the average of the S&P500 Index (25.67), we can say GWRS is valued expensively.
A Price/Forward Earnings ratio of 35.61 indicates a quite expensive valuation of GWRS.
GWRS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GWRS is more expensive than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GWRS to the average of the S&P500 Index (31.86), we can say GWRS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.23 | ||
| Fwd PE | 35.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.08 |
4.3 Compensation for Growth
GWRS's earnings are expected to grow with 21.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y9.09%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
GWRS has a Yearly Dividend Yield of 3.10%.
GWRS's Dividend Yield is a higher than the industry average which is at 3.39.
Compared to an average S&P500 Dividend Yield of 2.40, GWRS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
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 2Y9.09%
EPS Next 3Y21.31%
10.17
-0.08 (-0.78%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change3%
Ins Owners9.95%
Ins Owner Change-0.03%
Market Cap279.37M
Revenue(TTM)54.27M
Net Income(TTM)5.57M
Analysts82.22
Price Target14.45 (42.08%)
Short Float %1.36%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)-8.6%
PT rev (3m)-8.6%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.03%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.23 | ||
| Fwd PE | 35.61 | ||
| P/S | 5.15 | ||
| P/FCF | N/A | ||
| P/OCF | 16.39 | ||
| P/B | 3.64 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 17.08 |
EPS(TTM)0.22
EY2.16%
EPS(NY)0.29
Fwd EY2.81%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)0.62
OCFY6.1%
SpS1.98
BVpS2.79
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.88
Graham Number3.72
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%
ROICexgc growth 3Y-2.27%
ROICexgc 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 | 0.65 |
F-Score4
WACC7.56%
ROIC/WACC0.21
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-9.33%
EPS Next 2Y9.09%
EPS Next 3Y21.31%
EPS Next 5Y15.33%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%5.41%
Revenue Next Year6.87%
Revenue Next 2Y7.63%
Revenue Next 3Y10.45%
Revenue Next 5Y7.05%
EBIT growth 1Y-4.44%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year158.1%
EBIT Next 3YN/A
EBIT Next 5Y30.1%
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%
GLOBAL WATER RESOURCES INC / GWRS FAQ
Can you provide the ChartMill fundamental rating for GLOBAL WATER RESOURCES INC?
ChartMill assigns a fundamental rating of 3 / 10 to GWRS.
What is the valuation status for GWRS stock?
ChartMill assigns a valuation rating of 1 / 10 to GLOBAL WATER RESOURCES INC (GWRS). This can be considered as Overvalued.
How profitable is GLOBAL WATER RESOURCES INC (GWRS) stock?
GLOBAL WATER RESOURCES INC (GWRS) has a profitability rating of 4 / 10.
What is the valuation of GLOBAL WATER RESOURCES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBAL WATER RESOURCES INC (GWRS) is 46.23 and the Price/Book (PB) ratio is 3.64.
How sustainable is the dividend of GLOBAL WATER RESOURCES INC (GWRS) stock?
The dividend rating of GLOBAL WATER RESOURCES INC (GWRS) is 5 / 10 and the dividend payout ratio is 136.17%.