GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis
NASDAQ:GWRS - US3794631024 - Common Stock
9.71 USD
+0.2 (+2.1%)
9.71 USD
0 (0%)
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 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.
GWRS had a positive operating cash flow in the past year.
Each year in the past 5 years GWRS has been profitable.
In the past 5 years GWRS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.24%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
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.
Looking at the Return On Invested Capital, with a value of 1.57%, 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 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
With a Profit Margin value of 10.27%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
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.
With an excellent Gross Margin value of 87.85%, GWRS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
GWRS's Gross Margin has been stable in the last couple of years.
| 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.
GWRS has more shares outstanding than it did 1 year ago.
GWRS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GWRS has a worse debt to assets ratio.
2.2 Solvency
GWRS has an Altman-Z score of 0.61. This is a bad value and indicates that GWRS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GWRS (0.61) is worse than 85.71% of its industry peers.
GWRS has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GWRS (1.52) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACC0.2
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GWRS should not have too much problems paying its short term obligations.
GWRS has a Current ratio of 1.09. This is in the better half 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 has a Quick ratio of 1.09. This is in the better half 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
GWRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
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
GWRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.11% yearly.
The Revenue is expected to grow by 6.65% on average over the next years.
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
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 44.14, which means the current valuation is very expensive for GWRS.
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.
GWRS is valuated expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
GWRS is valuated quite expensively with a Price/Forward Earnings ratio of 34.62.
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.
GWRS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.14 | ||
| Fwd PE | 34.62 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than GWRS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.19 |
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
GWRS has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.39, GWRS pays a bit more dividend than its industry peers.
GWRS's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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.
The dividend of GWRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP136.17%
EPS Next 2Y8.11%
EPS Next 3YN/A
9.71
+0.2 (+2.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners27.88%
Inst Owner Change7.18%
Ins Owners9.94%
Ins Owner Change8.63%
Market Cap266.73M
Analysts85
Price Target15.81 (62.82%)
Short Float %1.33%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)-5.56%
EPS NQ rev (3m)-39.29%
EPS NY rev (1m)2.33%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.14 | ||
| Fwd PE | 34.62 | ||
| P/S | 4.91 | ||
| P/FCF | N/A | ||
| P/OCF | 15.65 | ||
| P/B | 3.48 | ||
| P/tB | 4.3 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)0.22
EY2.27%
EPS(NY)0.28
Fwd EY2.89%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)0.62
OCFY6.39%
SpS1.98
BVpS2.79
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.8
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 | 0.61 |
F-Score4
WACC7.83%
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%