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

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


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

-0.2%

CWCO

0.6%

US Water Utilities

1.8%

US Market


1 Year Return

24.7%

CWCO

30.0%

US Water Utilities

7.3%

US Market

Return vs Industry: CWCO underperformed the US Water Utilities industry which returned 30% over the past year.

Return vs Market: CWCO exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

CWCOIndustryMarket
7 Day-0.2%0.6%1.8%
30 Day6.1%2.5%-0.7%
90 Day13.1%9.4%0.06%
1 Year27.8%24.7%32.5%30.0%9.7%7.3%
3 Year63.1%51.2%78.0%67.5%46.3%36.9%
5 Year54.0%35.6%147.9%122.1%64.5%46.5%

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?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CWCO ($16.22) is trading below our estimate of fair value ($19)

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


Price To Earnings Ratio

PE vs Industry: CWCO is good value based on its PE Ratio (21.1x) compared to the Water Utilities industry average (39.5x).

PE vs Market: CWCO is poor value based on its PE Ratio (21.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CWCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CWCO is good value based on its PB Ratio (1.5x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

How is Consolidated Water forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWCO's earnings are forecast to decline over the next 3 years (-7.5% per year).

Earnings vs Market: CWCO's earnings are forecast to decline over the next 3 years (-7.5% per year).

High Growth Earnings: CWCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CWCO's revenue (1.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CWCO's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CWCO's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: CWCO's earnings growth over the past year (110.4%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: CWCO earnings growth over the past year (110.4%) exceeded the Water Utilities industry 2.3%.


Return on Equity

High ROE: CWCO's Return on Equity (7.5%) is considered low.


Return on Assets

ROA vs Industry: CWCO has a higher Return on Assets than the Water Utilities industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Consolidated Water's financial position?


Financial Position Analysis

Short Term Liabilities: CWCO's short term assets ($71.5M) exceeds its short term liabilities ($5.6M)

Long Term Liabilities: CWCO's short term assets (71.5M) exceeds its long term liabilities (4.7M)


Debt to Equity History and Analysis

Debt Level: CWCO is debt free.

Reducing Debt: CWCO has no debt compared to 5 years ago when its debt to equity ratio was 7%.

Debt Coverage: CWCO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CWCO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: CWCO's 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?

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CWCO's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CWCO's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 reasonably low payout ratio (44.1%), CWCO's dividend payments are 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

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

9.1yrs

Average management tenure


CEO

Rick McTaggart (56yo)

15.8yrs

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

Compensation vs. Market: Rick's total compensation ($USD1.12M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

9.1yrs

Average Tenure

56yo

Average Age

Experienced Management: CWCO's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

21.8yrs

Average Tenure

63yo

Average Age

Experienced Board: CWCO's board of directors are seasoned and experienced ( 21.8 years average tenure).


Insider Trading

Insider Buying: CWCO 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: 15.8yrs
    • 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: 9.1yrs
    • Compensation: US$291.88k
  • John Tonner (58yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 7.7yrs
    • Compensation: US$535.60k

Board Members

  • Rick McTaggart (56yo)

    CEO, President & Director

    • Tenure: 15.8yrs
    • Compensation: US$1.12m
  • Brian Butler (69yo)

    Director

    • Tenure: 36.8yrs
    • Compensation: US$72.50k
  • Richard Finlay (60yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$95.45k
  • Clarence Flowers (63yo)

    Director

    • Tenure: 28.8yrs
    • Compensation: US$65.80k
  • Lenny Sokolow (62yo)

    Director

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

    Director

    • Tenure: 30.9yrs
    • Compensation: US$94.20k
  • Wilmer Pergande (79yo)

    Chairman of the Board

    • Tenure: 9.9yrs
    • Compensation: US$164.10k
  • Carson Ebanks (63yo)

    Director

    • Tenure: 18.4yrs
    • Compensation: US$71.00k
  • Linda Beidler-D'Aguilar (56yo)

    Director

    • Tenure: 0.9yrs
    • 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$243.747m
  • 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 Analysis2019/10/18 23:44
End of Day Share Price2019/10/18 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.