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Consolidated Water Co Ltd (CWCO)
NASDAQ:CWCO
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Consolidated Water Co
(NASDAQ:CWCO)
63Neutral
Consolidated Water Co (CWCO) vs. S&P 500 (SPY)
Market Cap
$384.96M
Dividend Yield1.69%
Average Volume (3M)153.66K
Price to Earnings (P/E)13.7
Beta (1Y)0.86
Revenue Growth-25.66%
EPS Growth-5.11%
CountryUS
Employees293
SectorUtilities
Sector Strength71
IndustryRegulated Utilities
Share Statistics
EPS (TTM)1.77
Shares Outstanding15,874,796
10 Day Avg. Volume261,769
30 Day Avg. Volume153,663
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)N/A
Price to Sales (P/S)3.14
Price to Cash Flow (P/CF)-141.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Consolidated Water Co Business Overview & Revenue Model
Company DescriptionConsolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. It uses reverse osmosis technology to produce potable water from seawater. The company produces and supplies water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It also provides design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.
How the Company Makes MoneyConsolidated Water Co. makes money primarily through the sale of potable water produced by its desalination plants. The company operates under long-term contracts with government entities and private sector customers, ensuring a steady stream of revenue. These contracts often include fixed charges and variable charges based on water consumption, providing a reliable income structure. Additionally, CWCO generates revenue through its water distribution services, management of water treatment plants, and occasionally through the construction of new water infrastructure. Partnerships with local governments and private enterprises are crucial, enabling the company to expand its operations and maintain a strong presence in its operating regions.
Consolidated Water Co Financial Statement Overview
Summary
Consolidated Water Co demonstrates strong financial performance with growth in revenue and profitability, a stable balance sheet with low leverage, and efficient cash generation. The company is well-managed and positioned for sustained growth and shareholder returns.Income Statement
Consolidated Water Co has demonstrated strong revenue growth over recent years, with notable increases from 2022 to 2023. The company maintains healthy gross and net profit margins, reflecting efficient cost management and profitability. The EBIT and EBITDA margins have shown improvement, indicating operational efficiency and robust earnings before interest, taxes, and depreciation. Overall, the income statement reveals a positive trajectory in revenue and profitability metrics.85
Very Positive
Balance Sheet
The balance sheet of Consolidated Water Co shows a strong equity position with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is healthy, showcasing the company's ability to generate returns on shareholders' investments. The equity ratio is solid, reflecting a stable financial structure with significant assets funded by shareholder equity. The balance sheet metrics underscore the company's financial stability and low leverage risk.80
Positive
Cash Flow
Consolidated Water Co exhibits robust free cash flow generation, with positive growth trends in free cash flow over recent periods. The operating cash flow to net income ratio indicates efficient conversion of earnings into cash. The free cash flow to net income ratio further highlights strong cash earnings quality. These metrics signify effective cash management, although there is room for improvement in capital expenditure efficiency.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 158.81M | 10.00T> | 180.21M | 94.10M | 66.86M | 72.63M | Gross Profit |
| 56.42M | 45.62T | 61.93M | 30.36M | 23.51M | 26.77M | EBIT |
| 29.64M | 18.28T | 37.17M | 3.74M | -948.56K | 2.05M | EBITDA |
| 38.36M | 18.28T | 44.72M | 15.97M | 10.57M | 16.34M | Net Income Common Stockholders |
| 36.62M | 28.24T | 29.59M | 9.34M | 4.08M | 9.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.34M | 99.35T | 42.62M | 50.71M | 42.86M | 43.79M | Total Assets |
| 172.52M | 10.00T> | 218.44M | 193.01M | 177.03M | 179.56M | Total Debt |
| 0.00 | 761.26B | 2.67M | 2.47M | 2.94M | 1.61M | Net Debt |
| -31.34M | -98.59T | -39.95M | -48.24M | -37.41M | -42.19M | Total Liabilities |
| 8.76M | 28.00T | 26.61M | 25.24M | 11.36M | 10.54M | Stockholders Equity |
| 154.97M | 10.00T> | 186.83M | 159.67M | 157.58M | 160.91M |
| Cash Flow | Free Cash Flow | ||||
| 32.16M | 31.48T | 2.92M | 13.79M | 5.48M | 15.61M | Operating Cash Flow |
| 36.83M | 38.17T | 7.97M | 21.33M | 6.97M | 17.34M | Investing Cash Flow |
| 25.62M | 26.96T | -10.89M | -4.98M | -3.94M | -11.12M | Financing Cash Flow |
| -6.44M | -6.71T | -5.52M | -6.30M | -5.86M | -5.17M |
Consolidated Water Co Technical Analysis
Negative
24.28
Price Trends
26.87
Negative
26.21
Negative
26.07
Negative
Market Momentum
-0.52
Positive
33.29
Neutral
9.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWCO, the sentiment is Negative. The current price of 24.28 is below the 20-day moving average (MA) of 27.15, below the 50-day MA of 26.87, and below the 200-day MA of 26.07, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWCO.
Consolidated Water Co Risk Analysis
Consolidated Water Co disclosed 20 risk factors in its most recent earnings report. Consolidated Water Co reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Consolidated Water Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.76B | 14.01 | 12.46% | 2.50% | 30.48% | 267.73% | |
77 Outperform | $1.72B | 17.85 | 7.23% | 3.16% | 11.65% | 6.78% | |
74 Outperform | $27.51B | 25.82 | 10.44% | 2.20% | 10.63% | 10.38% | |
71 Outperform | $10.60B | 17.47 | 9.84% | 3.39% | 1.57% | 16.50% | |
69 Neutral | $2.88B | 23.51 | 14.01% | 2.45% | -0.04% | -5.82% | |
65 Neutral | $11.97B | 15.58 | 6.65% | 4.33% | 5.53% | -5.08% | |
63 Neutral | $384.96M | 13.69 | 9.01% | 1.69% | -25.66% | -5.11% |
* Utilities Sector Average
Performance Comparison
CWCO
Consolidated Water Co
24.14
-4.81
-16.61%
AWR
American States Water
75.60
5.00
7.08%
AWK
American Water
141.13
21.69
18.16%
WTRG
Essential Utilities
38.57
2.75
7.68%
CWT
California Water Service
46.40
1.03
2.27%
SJW
SJW
51.94
-3.01
-5.48%
Consolidated Water Co Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: -16.56% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While there are significant achievements such as record water sales, increased recurring revenue, and a strong balance sheet, these are offset by declines in overall revenue, net income, and bulk segment revenue. The company's expansion plans and future projects provide potential for growth, but the current financial figures indicate challenges that need addressing.Highlights
Record Volume of Water Sold
The retail water sales in Grand Cayman reflected a record volume of water sold to a record number of customers, driven by ongoing growth in population and business activity.
Significant Increase in Recurring Revenue
Recurring revenue from operations and maintenance contracts increased by 51% to $29.3 million, mainly due to contributions from the new REC subsidiary in Colorado and additional contracts by PERC Water.
Strong Balance Sheet
Cash equivalents increased by $57 million during the year to a total of $99.4 million, with stockholders' equity at $210 million and practically no debt on the balance sheet.
Expansion and Growth Potential
The company is expanding its West Bay plant and manufacturing facility to support future growth and improve margins. The Hawaii seawater desalination project is advancing and expected to significantly impact revenue and earnings in 2026 and 2027.
Lowlights
Decrease in Overall Revenue
Revenue in 2024 totaled $134 million compared to $180 million in 2023, due to a $47 million decrease in the Service segment revenue following the completion of major construction projects.
Decline in Net Income
Net income from continuing operations attributable to shareholders decreased to $17.9 million in 2024 from $30.7 million in 2023, with overall net income slightly lower than the previous year.
Decline in Bulk Segment Revenue
Bulk segment revenue declined slightly from $34.6 million in 2023 to $33.7 million in 2024 due to lower energy prices affecting the energy pass-through component of rates in the Bahamas.
Company Guidance
During the call, Consolidated Water Company discussed their 2024 fiscal year results, highlighting a total revenue of $134 million, down from $180 million in 2023, primarily due to a $47 million decrease in service segment revenue following the completion of major construction projects. Retail revenue increased by $1.6 million to $31.7 million, driven by a 4.5% rise in water volume sold, reflecting a 4.3% increase in customer accounts. Bulk segment revenue slightly declined from $34.6 million to $33.7 million, impacted by lower energy prices in the Bahamas. Recurring revenue in the services segment rose by 51% to $29.3 million, bolstered by the acquisition of REC in Colorado. Net income from continuing operations was $17.9 million or $1.12 per diluted share, while total net income reached $28.2 million or $1.77 per diluted share. The company's cash equivalents increased significantly by $57 million to $99.4 million, with working capital reaching $132.8 million. Looking forward, the company plans capital expenditures of approximately $10.3 million in 2025 and anticipates significant future revenue from ongoing projects, such as the $204 million desalination project in Hawaii.Consolidated Water Co Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Consolidated Water Co Secures New Water Concession
Neutral
Feb 25, 2025
On February 18, 2025, Consolidated Water Co. Ltd.’s subsidiary, Cayman Water Company, received a new water production and supply concession from the Cayman Islands government, allowing it to continue its exclusive rights to produce and supply potable water in Grand Cayman. This concession is a significant step towards securing a new operating license from the Cayman Islands utility regulator, OfReg, which is expected to involve restructuring the previous terms. The outcome of these negotiations could impact the company’s financial condition and operations, as the new license terms may affect its operating income and cash flows.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.