NasdaqGS:CWCO

Stock Analysis Report

Executive Summary

Consolidated Water Co. Ltd., together with its subsidiaries, develops and operates seawater desalination plants and water distribution systems primarily in the Cayman Islands, the Bahamas, Indonesia, and the United States.

Snowflake

Fundamentals

Excellent balance sheet with solid track record and pays a dividend.

Risks

  • Consolidated Water is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

NasdaqGS:CWCO

-0.7%

US Water Utilities

1.3%

US Market


1 Year Return

7.0%

NasdaqGS:CWCO

27.3%

US Water Utilities

2.0%

US Market

CWCO underperformed the Water Utilities industry which returned 27.6% over the past year.

CWCO outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CWCOIndustryMarket
7 Day4.8%-0.7%1.3%
30 Day1.7%-1.0%3.9%
90 Day10.8%6.3%3.4%
1 Year9.9%7.0%29.8%27.3%4.2%2.0%
3 Year38.7%28.4%71.5%61.1%47.2%37.6%
5 Year37.0%20.5%155.0%128.5%60.5%42.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Consolidated Water's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Consolidated Water's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Consolidated Water is good value based on earnings compared to the US Water Utilities industry average.

Consolidated Water is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Consolidated Water earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Consolidated Water is good value based on assets compared to the US Water Utilities industry average.


Next Steps

Future Growth

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

-7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Consolidated Water's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Consolidated Water's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Consolidated Water's revenue growth is positive but not above the United States of America market average.

Consolidated Water's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Consolidated Water's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Consolidated Water will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Consolidated Water performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Consolidated Water's year on year earnings growth rate has been positive over the past 5 years.

Consolidated Water's 1-year earnings growth exceeds its 5-year average (110.4% vs 7.6%)

Consolidated Water's earnings growth has exceeded the US Water Utilities industry average in the past year (110.4% vs 2.3%).


Return on Equity

Consolidated Water has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Consolidated Water used its assets more efficiently than the US Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Consolidated Water has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Consolidated Water's financial position?


Financial Position Analysis

Consolidated Water is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Consolidated Water's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Consolidated Water's level of debt (0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (7% vs 0% today).

Operating cash flow is negative therefore debt is not well covered.

Consolidated Water has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are -8.0464470217739E+16x debt.


Next Steps

Dividend

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

2.24%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Consolidated Water before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Consolidated Water's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Consolidated Water's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Rick McTaggart (56yo)

15.7yrs

Tenure

US$1,120,133

Compensation

Mr. Frederick W. McTaggart, also known as Rick, has been a Director of Consolidated Water Co. Ltd. since 1998. He has been the Chief Executive Officer of Consolidated Water Co. Ltd. since January 1, 2004 a ...


CEO Compensation Analysis

Rick's remuneration is about average for companies of similar size in United States of America.

Rick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.0yrs

Average Tenure

56yo

Average Age

The average tenure for the Consolidated Water management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

21.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Consolidated Water board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Consolidated Water individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$212,85623 Aug 19
Clarence Flowers
EntityIndividual
Role
Member of the Board of Directors
Director
Shares14,480
Max PriceUS$14.70
SellUS$92,72218 Apr 19
Clarence Flowers
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,393
Max PriceUS$12.54
SellUS$89,14418 Apr 19
Clarence Flowers
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,603
Max PriceUS$13.50
SellUS$30,46508 Apr 19
Wilmer Pergande
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,383
Max PriceUS$12.87
SellUS$11,25901 Apr 19
Wilmer Pergande
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares858
Max PriceUS$13.12

Ownership Breakdown


Management Team

  • David Sasnett (62yo)

    Executive VP & CFO

    • Tenure: 13.3yrs
    • Compensation: US$593.62k
  • Rick McTaggart (56yo)

    CEO, President & Director

    • Tenure: 15.7yrs
    • Compensation: US$1.12m
  • Ramjeet Jerrybandan (51yo)

    Executive VP of Operations & Company Secretary

    • Tenure: 2.8yrs
    • Compensation: US$433.76k
  • Brent Brodie (56yo)

    Vice President of Sales & Marketing

    • Tenure: 9yrs
    • Compensation: US$291.88k
  • John Tonner (58yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 7.6yrs
    • Compensation: US$535.60k

Board Members

  • Rick McTaggart (56yo)

    CEO, President & Director

    • Tenure: 15.7yrs
    • Compensation: US$1.12m
  • Brian Butler (69yo)

    Director

    • Tenure: 36.7yrs
    • Compensation: US$72.50k
  • Richard Finlay (60yo)

    Director

    • Tenure: 24.7yrs
    • Compensation: US$95.45k
  • Clarence Flowers (63yo)

    Director

    • Tenure: 28.7yrs
    • Compensation: US$65.80k
  • Lenny Sokolow (62yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$99.60k
  • Raymond Whittaker (65yo)

    Director

    • Tenure: 30.8yrs
    • Compensation: US$94.20k
  • Wilmer Pergande (79yo)

    Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$164.10k
  • Carson Ebanks (63yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$71.00k
  • Linda Beidler-D'Aguilar (56yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$4.22k

Company Information

Consolidated Water Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Consolidated Water Co. Ltd.
  • Ticker: CWCO
  • Exchange: NasdaqGS
  • Founded: 1973
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$228.419m
  • Shares outstanding: 15.03m
  • Website: https://www.cwco.com

Number of Employees


Location

  • Consolidated Water Co. Ltd.
  • Regatta Office Park
  • Windward Three, 4th Floor
  • Grand Cayman
  • KY1-1102
  • Cayman Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWCONasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMay 1995
CW2DB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 1995

Biography

Consolidated Water Co. Ltd., together with its subsidiaries, develops and operates seawater desalination plants and water distribution systems primarily in the Cayman Islands, the Bahamas, Indonesia, and t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:46
End of Day Share Price2019/09/13 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.