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Has the U.S. Water Industry valuation changed over the past few years?
|Sun, 29 May 2022||US$50.9b||US$8.2b||US$2.0b||33.1x|
|Tue, 26 Apr 2022||US$53.5b||US$8.1b||US$2.0b||33x|
|Thu, 24 Mar 2022||US$52.7b||US$8.1b||US$2.0b||33.6x|
|Sat, 19 Feb 2022||US$50.4b||US$8.1b||US$2.0b||32.5x|
|Mon, 17 Jan 2022||US$54.9b||US$8.0b||US$1.5b||36.5x|
|Wed, 15 Dec 2021||US$59.1b||US$8.0b||US$1.5b||36.9x|
|Fri, 12 Nov 2021||US$55.7b||US$8.0b||US$1.5b||38.5x|
|Sun, 10 Oct 2021||US$54.7b||US$8.1b||US$1.6b||35.3x|
|Tue, 07 Sep 2021||US$58.4b||US$8.8b||US$537.8m||36.8x|
|Thu, 05 Aug 2021||US$58.1b||US$8.7b||US$1.4b||36.6x|
|Sun, 09 May 2021||US$51.8b||US$8.6b||US$1.4b||31.6x|
|Wed, 10 Feb 2021||US$50.9b||US$8.2b||US$1.2b||33.1x|
|Tue, 03 Nov 2020||US$47.8b||US$7.9b||US$1.1b||31.1x|
|Fri, 07 Aug 2020||US$48.9b||US$7.6b||US$1.0b||33.7x|
|Thu, 30 Apr 2020||US$41.7b||US$7.3b||US$983.1m||33.7x|
|Sun, 02 Feb 2020||US$46.7b||US$7.2b||US$954.9m||38.8x|
|Wed, 06 Nov 2019||US$43.2b||US$7.1b||US$910.7m||38.9x|
|Sat, 10 Aug 2019||US$39.7b||US$7.0b||US$840.2m||35.6x|
How does U.S. Water compare with similar industries?
Which companies have driven the market over the last 7 days?
|AWK American Water Works Company||US$151.76||4.3%|
|WTRG Essential Utilities||US$46.41||0.7%|
|AWR American States Water||US$79.69||1.1%|
|GWRS Global Water Resources||US$14.39||8.1%|
|PCYO Pure Cycle||US$11.06||8.2%|
American States Water
American Water Works Company
SJW Group has exhibited volatility in earnings over the last five years. Earnings for FY-2021 were barely above FY-2017, despite additional share issues and borrowings to fund acquisitions. Weather patterns have caused water supply security concerns for the company, raising the prospect of purchased water impacting margins.
The company continues to be free-cash-flow negative and relies heavily on debt to make up for the additional cash that is needed to finance its CapEx program. Despite the recent 13% price decline, MSEX still trades at over 10x revenue and ~30x LTM EV/EBITDA which makes the stock extremely expensive from a relative and absolute perspective. Rising rates are therefore a major risk at this point given the fact that the company might run into trouble when trying to refinance some of the existing debt.
Global Water Resources
California Water Service Group
Inflation has reared its ugly head, and interest rate hikes have just begun. Standard long lease REITs will see the value of their cash flow decline. Firms where the value is mostly assets (which should appreciate in value) and less contracted cash flows (which will decline) should do well.