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GLOBAL WATER RESOURCES INC (GWRS) Stock Fundamental Analysis

NASDAQ:GWRS - Nasdaq - US3794631024 - Common Stock - Currency: USD

10.31  -0.24 (-2.27%)

Fundamental Rating

3

GWRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
GWRS Yearly Net Income VS EBIT VS OCF VS FCFGWRS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M

1.2 Ratios

With a Return On Assets value of 1.43%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
GWRS has a Return On Equity of 12.16%. This is in the better half of the industry: GWRS outperforms 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.79%, 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 5.20%.
Industry RankSector Rank
ROA 1.43%
ROE 12.16%
ROIC 1.79%
ROA(3y)1.78%
ROA(5y)1.39%
ROE(3y)13.66%
ROE(5y)11.29%
ROIC(3y)2.09%
ROIC(5y)2.02%
GWRS Yearly ROA, ROE, ROICGWRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80 100

1.3 Margins

With a Profit Margin value of 10.99%, GWRS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of GWRS has grown nicely.
The Operating Margin of GWRS (17.70%) is worse than 71.43% of its industry peers.
GWRS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 90.48%, GWRS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GWRS has remained more or less at the same level.
Industry RankSector Rank
OM 17.7%
PM (TTM) 10.99%
GM 90.48%
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%
GWRS Yearly Profit, Operating, Gross MarginsGWRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWRS 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.
The debt/assets ratio for GWRS is higher compared to a year ago.
GWRS Yearly Shares OutstandingGWRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
GWRS Yearly Total Debt VS Total AssetsGWRS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

GWRS has an Altman-Z score of 0.68. This is a bad value and indicates that GWRS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.68, GWRS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.49 is on the high side and indicates that GWRS has dependencies on debt financing.
The Debt to Equity ratio of GWRS (2.49) is worse than 92.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF N/A
Altman-Z 0.68
ROIC/WACC0.22
WACC8.13%
GWRS Yearly LT Debt VS Equity VS FCFGWRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 0.87 indicates that GWRS may have some problems paying its short term obligations.
GWRS has a Current ratio (0.87) which is in line with its industry peers.
A Quick Ratio of 0.87 indicates that GWRS may have some problems paying its short term obligations.
GWRS has a better Quick ratio (0.87) than 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.87
GWRS Yearly Current Assets VS Current LiabilitesGWRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M

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4

3. Growth

3.1 Past

GWRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.29%.
The Earnings Per Share has been growing by 24.57% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.64% in the past 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)-14.29%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%7.14%

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 9.09% on average per year.
GWRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
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.
GWRS Yearly Revenue VS EstimatesGWRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10M 20M 30M 40M 50M
GWRS Yearly EPS VS EstimatesGWRS Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.1 -0.1 0.2

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0

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 42.96 indicates a quite expensive valuation of GWRS.
78.57% of the companies in the same industry are cheaper than GWRS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.18, GWRS is valued quite expensively.
A Price/Forward Earnings ratio of 45.94 indicates a quite expensive valuation of GWRS.
71.43% of the companies in the same industry are cheaper than GWRS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.81. GWRS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 42.96
Fwd PE 45.94
GWRS Price Earnings VS Forward Price EarningsGWRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GWRS is valued a bit more expensive than 78.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.28
GWRS Per share dataGWRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y9.09%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

GWRS has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.29, 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 2.45.
Industry RankSector Rank
Dividend Yield 2.94%

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.
Dividend Growth(5Y)1%
Div Incr Years0
Div Non Decr Years0
GWRS Yearly Dividends per shareGWRS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

126.07% 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.
DP126.07%
EPS Next 2Y9.09%
EPS Next 3YN/A
GWRS Yearly Income VS Free CF VS DividendGWRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M
GWRS Dividend Payout.GWRS Dividend Payout, showing the Payout Ratio.GWRS Dividend Payout.PayoutRetained Earnings

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GLOBAL WATER RESOURCES INC

NASDAQ:GWRS (5/5/2025, 3:55:18 PM)

10.31

-0.24 (-2.27%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)03-05 2025-03-05/amc
Earnings (Next)05-14 2025-05-14/amc
Inst Owners28.03%
Inst Owner Change4.18%
Ins Owners10.3%
Ins Owner Change8.97%
Market Cap283.01M
Analysts85
Price Target15.81 (53.35%)
Short Float %0.74%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
Yearly Dividend0.3
Dividend Growth(5Y)1%
DP126.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-16 2025-05-16 (0.02533)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.18%
Min EPS beat(2)-67.32%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-14.23%
Min EPS beat(4)-67.32%
Max EPS beat(4)17.65%
EPS beat(8)5
Avg EPS beat(8)11%
EPS beat(12)9
Avg EPS beat(12)62.56%
EPS beat(16)12
Avg EPS beat(16)58.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)2.42%
Revenue beat(12)4
Avg Revenue beat(12)1.07%
Revenue beat(16)7
Avg Revenue beat(16)0.82%
PT rev (1m)-6.06%
PT rev (3m)-7.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-70%
EPS NY rev (1m)-12%
EPS NY rev (3m)-25.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.46%
Valuation
Industry RankSector Rank
PE 42.96
Fwd PE 45.94
P/S 5.37
P/FCF N/A
P/OCF 12.99
P/B 5.95
P/tB 9.53
EV/EBITDA 18.28
EPS(TTM)0.24
EY2.33%
EPS(NY)0.22
Fwd EY2.18%
FCF(TTM)-0.38
FCFYN/A
OCF(TTM)0.79
OCFY7.7%
SpS1.92
BVpS1.73
TBVpS1.08
PEG (NY)N/A
PEG (5Y)1.75
Profitability
Industry RankSector Rank
ROA 1.43%
ROE 12.16%
ROCE 2.44%
ROIC 1.79%
ROICexc 1.84%
ROICexgc 1.93%
OM 17.7%
PM (TTM) 10.99%
GM 90.48%
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 Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF N/A
Debt/EBITDA 5.38
Cap/Depr 254.12%
Cap/Sales 61.35%
Interest Coverage 1.8
Cash Conversion 98.81%
Profit Quality N/A
Current Ratio 0.87
Quick Ratio 0.87
Altman-Z 0.68
F-Score4
WACC8.13%
ROIC/WACC0.22
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)-14.29%
EPS 3Y19.68%
EPS 5Y24.57%
EPS Q2Q%-71.43%
EPS Next Y-6.5%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y7.93%
Revenue growth 5Y8.24%
Sales Q2Q%7.14%
Revenue Next Year6.11%
Revenue Next 2Y5.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.1%
EBIT growth 3Y10.14%
EBIT growth 5Y6.03%
EBIT Next Year155.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-442.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.21%
OCF growth 3Y2.23%
OCF growth 5Y13.49%