NasdaqGS:CWCO

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Executive Summary

Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and treatment plants primarily in the Cayman Islands, the Bahamas, Indonesia, and the United States. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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

Stable Share Price: CWCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

CWCO

1.2%

US Water Utilities

-1.1%

US Market


1 Year Return

-38.9%

CWCO

10.8%

US Water Utilities

15.6%

US Market

Return vs Industry: CWCO underperformed the US Water Utilities industry which returned 10.8% over the past year.

Return vs Market: CWCO underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

CWCOIndustryMarket
7 Day-0.7%1.2%-1.1%
30 Day-2.8%7.7%4.2%
90 Day-15.2%-0.4%6.3%
1 Year-37.4%-38.9%12.8%10.8%18.2%15.6%
3 Year-8.2%-14.8%55.4%46.7%39.6%30.4%
5 Year5.3%-7.0%133.8%111.5%79.5%59.2%

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 compared to its fair value and its price relative to the market?

30.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWCO ($10.48) is trading above our estimate of fair value ($7.07)

Significantly Below Fair Value: CWCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWCO is good value based on its PE Ratio (30x) compared to the US Water Utilities industry average (34.1x).

PE vs Market: CWCO is poor value based on its PE Ratio (30x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CWCO is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CWCO is good value based on its PB Ratio (1x) compared to the US Water Utilities industry average (2.3x).


Next Steps

Future Growth

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

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWCO's forecast earnings growth (29.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CWCO's earnings (29.7% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: CWCO's revenue (3.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CWCO's revenue (3.5% 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


Next Steps

Past Performance

How has Consolidated Water performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWCO has a large one-off loss of $3.0M impacting its June 30 2020 financial results.

Growing Profit Margin: CWCO's current net profit margins (7.2%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: CWCO's earnings have grown by 8.7% 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 (-54.3%) over the past year, making it difficult to compare to the Water Utilities industry average (7.8%).


Return on Equity

High ROE: CWCO's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Consolidated Water's financial position?


Financial Position Analysis

Short Term Liabilities: CWCO's short term assets ($70.8M) exceed its short term liabilities ($8.0M).

Long Term Liabilities: CWCO's short term assets ($70.8M) exceed its long term liabilities ($3.3M).


Debt to Equity History and Analysis

Debt Level: CWCO's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: CWCO's debt to equity ratio has reduced from 5.5% to 0.1% over the past 5 years.

Debt Coverage: CWCO's debt is well covered by operating cash flow (5581.3%).

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


Balance Sheet


Next Steps

Dividend

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

3.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWCO's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CWCO's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.63%).


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 (97.4%), 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?

10.1yrs

Average management tenure


CEO

Rick McTaggart (57 yo)

16.75yrs

Tenure

US$1,122,961

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 ($USD1.12M) is about average for companies of similar size in the US market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frederick McTaggart
CEO, President & Director16.75yrsUS$1.12m1.22%
$ 2.0m
David Sasnett
Executive VP & CFO14.33yrsUS$626.80k0.21%
$ 332.3k
Ramjeet Jerrybandan
Executive VP3.83yrsUS$608.80k0.14%
$ 233.6k
Brent Brodie
Vice President of Sales & Marketing10.08yrsUS$291.88k0.090%
$ 145.2k
John Tonner
Executive VP & Chief Commercial Officer8.67yrsUS$535.60k0.23%
$ 374.5k
Todd Redding
Vice President of Purchasing & Logisticsno datano data0.0095%
$ 15.4k

10.1yrs

Average Tenure

57yo

Average Age

Experienced Management: CWCO's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frederick McTaggart
CEO, President & Director16.75yrsUS$1.12m1.22%
$ 2.0m
Brian Butler
Independent Director37.75yrsUS$77.83k0.18%
$ 284.9k
Richard Finlay
Independent Director25.75yrsUS$104.45k0.40%
$ 642.8k
Clarence Flowers
Independent Director29.75yrsUS$70.23k2%
$ 3.2m
Leonard Sokolow
Independent Director14.33yrsUS$102.60k0.14%
$ 227.3k
Raymond Whittaker
Independent Director31.92yrsUS$89.53k0.040%
$ 64.9k
Wilmer Pergande
Independent Chairman of the Board10.92yrsUS$168.08k0.19%
$ 300.7k
Carson Ebanks
Independent Director19.42yrsUS$75.88k0.11%
$ 181.4k
Linda Beidler-D'Aguilar
Non-Independent Director1.92yrsUS$67.16k0.028%
$ 44.9k

22.8yrs

Average Tenure

64yo

Average Age

Experienced Board: CWCO's board of directors are seasoned and experienced ( 22.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CWCO insiders have only sold shares 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 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$161.806m
  • Shares outstanding: 15.12m
  • 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

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, designs, constructs, manages, and operates water production and treatment plants primarily in the Cayman Islands, the Bahamas, Indonesia, and th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 23:43
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.