Update shared on 13 Nov 2025
Fair value Increased 7.59%Analysts have raised their price target for Consolidated Water from $39.50 to $42.50. They cite improved profit margin projections, which outweigh a modestly higher discount rate and slightly reduced revenue growth expectations.
What's in the News
- Consolidated Water has secured an $11.7 million contract to construct a wastewater recycling plant for a San Francisco Bay Area golf club (Key Developments).
- The facility will be built by the company's subsidiary PERC Water Corporation and will treat 200,000 gallons of wastewater per day and store 600,000 gallons of treated water (Key Developments).
- The plant will use membrane bioreactor technology to produce high-quality recycled water for irrigation, diverting untreated wastewater from a nearby sewer (Key Developments).
- Innovative construction methods, such as precast concrete basins and prefabricated equipment buildings, are being used to cut costs and accelerate the project timeline (Key Developments).
- The project is expected to save 36 to 38 million gallons of potable water annually by recycling wastewater for non-potable purposes (Key Developments).
Valuation Changes
- Fair Value: Increased from $39.50 to $42.50, reflecting a higher analyst estimate.
- Discount Rate: Risen slightly from 6.78% to 6.96%, which indicates a modest uptick in risk assumption.
- Revenue Growth: Lowered from 35.6% to 31.4%, which signals tempered growth expectations.
- Net Profit Margin: Improved from 11.9% to 13.1%, which suggests stronger projected profitability.
- Future P/E: Increased from 20.1x to 21.4x, which indicates a higher valuation relative to forward earnings.
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