NasdaqGS:CTWS

Stock Analysis Report

Connecticut Water Service

Executive Summary

Connecticut Water Service, Inc., together with its subsidiaries, operates as a regulated water company.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Connecticut Water Service's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.03%

CTWS

-0.3%

US Water Utilities

0.6%

US Market


1 Year Return

1.2%

CTWS

35.0%

US Water Utilities

6.2%

US Market

Return vs Industry: CTWS underperformed the US Water Utilities industry which returned 35% over the past year.

Return vs Market: CTWS underperformed the US Market which returned 6.2% over the past year.


Share holder returns

CTWSIndustryMarket
7 Day-0.03%-0.3%0.6%
30 Day-0.09%2.7%-1.8%
90 Day-0.07%9.2%-2.0%
1 Year3.0%1.2%37.6%35.0%8.6%6.2%
3 Year46.4%38.0%78.1%67.6%45.7%36.3%
5 Year122.9%98.9%158.1%131.2%68.5%50.0%

Price Volatility Vs. Market

How volatile is Connecticut Water Service's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Connecticut Water Service undervalued based on future cash flows and its price relative to the stock market?

39.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CTWS ($69.98) is trading above our estimate of fair value ($28.81)

Significantly Undervalued: CTWS is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CTWS is good value based on its PE Ratio (39.4x) compared to the Water Utilities industry average (40x).

PE vs Market: CTWS is poor value based on its PE Ratio (39.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CTWS is poor value based on its PEG Ratio (2.7x)


Price Based on Value of Assets

PB vs Industry: CTWS is overvalued based on its PB Ratio (2.9x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

How is Connecticut Water Service expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CTWS's forecast earnings growth (14.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CTWS's earnings (14.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: CTWS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTWS's revenue (6.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CTWS's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CTWS's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Connecticut Water Service performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTWS's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: CTWS's earnings growth over the past year (32.3%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: CTWS earnings growth over the past year (32.3%) exceeded the Water Utilities industry 2.3%.


Return on Equity

High ROE: CTWS's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: CTWS's Return on Assets is below or equal to the Water Utilities industry average last year.


Return on Capital Employed

ROCE Improving: CTWS has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Connecticut Water Service's financial position?


Financial Position Analysis

Short Term Liabilities: CTWS's short term assets ($40.4M) do not cover its short term liabilities ($95.9M)

Long Term Liabilities: CTWS's short term assets ($40.4M) do not cover its long term liabilities ($589.9M)


Debt to Equity History and Analysis

Debt Level: CTWS's debt to equity ratio (113.5%) is considered high

Reducing Debt: CTWS's debt to equity ratio has increased from 86.9% to 113.5% over the past 5 years.

Debt Coverage: CTWS's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: CTWS's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: CTWS has a high level of physical assets or inventory.

Debt Coverage by Assets: CTWS's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Connecticut Water Service's current dividend yield, its reliability and sustainability?

1.96%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years2.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CTWS's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CTWS's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: CTWS's dividends per share have been stable in the past 10 years.

Growing Dividend: CTWS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), CTWS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTWS's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

What is the CEO of Connecticut Water Service's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

David Benoit (62yo)

2.1yrs

Tenure

US$1,574,880

Compensation

Mr. David C. Benoit, has been President and Chief Executive Officer of Connecticut Water Service, Inc. since March 7, 2018 and its Director since April 2, 2018. Previously, Mr. Benoit served as Chief Finan ...


CEO Compensation Analysis

Compensation vs. Market: David has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: CTWS's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

63yo

Average Age

Experienced Board: CTWS's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • David Benoit (62yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$1.57m
  • Peter Bancroft (69yo)

    Director of Rates–Forecasting & Assistant Treasurer

    • Tenure: 0yrs
  • Kristen Johnson (53yo)

    VP of Human Resources

    • Tenure: 1.5yrs
    • Compensation: US$479.30k
  • Dan Meaney (59yo)

    Director of Corporate Communications

    • Tenure: 0yrs
  • Bob Doffek (56yo)

    CFO, Treasurer & Controller

    • Tenure: 1.6yrs
    • Compensation: US$359.44k
  • Rick Knowlton (60yo)

    Division President of The Maine Water Company

    • Tenure: 2.5yrs

Board Members

  • Ellen Wolf (65yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$84.20k
  • David Benoit (62yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$1.57m
  • Lisa Thibdaue (66yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$77.80k
  • Mary Hanley (62yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$72.80k
  • Carol Wallace (64yo)

    Independent Chairperson

    • Tenure: 2.1yrs
    • Compensation: US$143.40k
  • Richard Forde (65yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$90.20k
  • Kristen Johnson (53yo)

    VP of Human Resources

    • Tenure: 1.5yrs
    • Compensation: US$479.30k
  • Heather Hunt (53yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$68.00k
  • Brad Hunter (63yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$77.40k

Company Information

Connecticut Water Service, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Connecticut Water Service, Inc.
  • Ticker: CTWS
  • Exchange: NasdaqGS
  • Founded: 1956
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$844.556m
  • Shares outstanding: 12.07m
  • Website: https://www.ctwater.com

Number of Employees


Location

  • Connecticut Water Service, Inc.
  • 93 West Main Street
  • Clinton
  • Connecticut
  • 6413
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTWSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1975
EC9DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1975

Biography

Connecticut Water Service, Inc., together with its subsidiaries, operates as a regulated water company. The company operates through three segments: Water Operations, Real Estate Transactions, and Services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/09 23:38
End of Day Share Price2019/10/09 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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