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CWCO

Consolidated WaterNasdaqGS:CWCO Stock Report

Market Cap

US$169.9m

7D

-2.0%

1Y

1.9%

Updated

30 Nov, 2021

Data

Company Financials +
CWCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends3/6

CWCO Stock Overview

Consolidated 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.

Consolidated Water Competitors

Veolia Environnement

ENXTPA:VIE

€19.1b

MarketAxess Holdings

NasdaqGS:MKTX

US$13.4b

Flowserve

NYSE:FLS

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Consolidated Water
Historical stock prices
Current Share PriceUS$11.17
52 Week HighUS$15.37
52 Week LowUS$10.66
Beta0.17
1 Month Change0.54%
3 Month Change-8.22%
1 Year Change1.92%
3 Year Change-11.14%
5 Year Change0.63%
Change since IPO495.73%

Recent News & Updates

Sep 16
Consolidated Water (NASDAQ:CWCO) Has Affirmed Its Dividend Of US$0.085

Consolidated Water (NASDAQ:CWCO) Has Affirmed Its Dividend Of US$0.085

The board of Consolidated Water Co. Ltd. ( NASDAQ:CWCO ) has announced that it will pay a dividend of US$0.085 per...

Sep 02
Consolidated Water (NASDAQ:CWCO) Has Affirmed Its Dividend Of US$0.085

Consolidated Water (NASDAQ:CWCO) Has Affirmed Its Dividend Of US$0.085

Consolidated Water Co. Ltd. ( NASDAQ:CWCO ) has announced that it will pay a dividend of US$0.085 per share on the 29th...

Aug 26

Shortage Of Fresh Water Makes Consolidated Water Opportunistic

CWCO has a massive amount of cash relative to its market cap. This, in combination with ample opportunity to grow in the southwestern U.S. presents earnings growth potential. CWCO is trading at a depressed valuation which gives significant upside to shares.

Shareholder Returns

CWCOUS Water UtilitiesUS Market
7D-2.0%-1.3%-0.9%
1Y1.9%13.8%23.3%

Return vs Industry: CWCO underperformed the US Water Utilities industry which returned 10.7% over the past year.

Return vs Market: CWCO underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is CWCO's price volatile compared to industry and market?
CWCO volatility
CWCO Average Weekly Movement2.9%
Water Utilities Industry Average Movement3.2%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: CWCO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CWCO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1973102Rick McTaggarthttps://www.cwco.com

Consolidated 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.

Consolidated Water Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
CWCO income statement (TTM)
RevenueUS$65.37m
Cost of RevenueUS$42.68m
Gross ProfitUS$22.69m
ExpensesUS$20.58m
EarningsUS$2.11m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin34.71%
Net Profit Margin3.23%
Debt/Equity Ratio0.1%

How did CWCO perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

245%

Payout Ratio

Valuation

Is Consolidated Water undervalued compared to its fair value and its price relative to the market?

5.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWCO ($11.17) is trading below our estimate of fair value ($11.85)

Significantly Below Fair Value: CWCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CWCO is poor value based on its PE Ratio (80.5x) compared to the US Water Utilities industry average (36.3x).

PE vs Market: CWCO is poor value based on its PE Ratio (80.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: CWCO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CWCO is good value based on its PB Ratio (1.1x) compared to the US Water Utilities industry average (3.2x).


Future Growth

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

123.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWCO's forecast earnings growth (123.5% per year) is above the savings rate (2%).

Earnings vs Market: CWCO's earnings (123.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWCO's revenue (11.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: CWCO's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CWCO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Consolidated Water performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWCO has a large one-off loss of $3.1M impacting its September 30 2021 financial results.

Growing Profit Margin: CWCO's current net profit margins (3.2%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: CWCO's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: CWCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWCO had negative earnings growth (-78.8%) over the past year, making it difficult to compare to the Water Utilities industry average (15.3%).


Return on Equity

High ROE: CWCO's Return on Equity (1.6%) is considered low.


Financial Health

How is Consolidated Water's financial position?


Financial Position Analysis

Short Term Liabilities: CWCO's short term assets ($76.4M) exceed its short term liabilities ($7.1M).

Long Term Liabilities: CWCO's short term assets ($76.4M) exceed its long term liabilities ($4.5M).


Debt to Equity History and Analysis

Debt Level: CWCO has more cash than its total debt.

Reducing Debt: CWCO's debt to equity ratio has reduced from 0.3% to 0.1% over the past 5 years.

Debt Coverage: CWCO's debt is well covered by operating cash flow (5908.3%).

Interest Coverage: CWCO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWCO's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: CWCO's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (244.6%), CWCO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average management tenure


CEO

Rick McTaggart (58 yo)

17.83yrs

Tenure

US$906,312

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

Compensation vs Market: Rick's total compensation ($USD906.31K) is about average for companies of similar size in the US market ($USD1.09M).

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


Leadership Team

Experienced Management: CWCO's management team is seasoned and experienced (13.3 years average tenure).


Board Members

Experienced Board: CWCO's board of directors are seasoned and experienced ( 23.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Consolidated Water Co. Ltd.'s 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$169.904m
  • Shares outstanding: 15.21m
  • Website: https://www.cwco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:15
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.