NasdaqGM:GWRS

Stock Analysis Report

Executive Summary

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.0%

GWRS

-4.4%

US Water Utilities

-7.4%

US Market


1 Year Return

35.7%

GWRS

28.2%

US Water Utilities

10.5%

US Market

Return vs Industry: GWRS exceeded the US Water Utilities industry which returned 28.2% over the past year.

Return vs Market: GWRS exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

GWRSIndustryMarket
7 Day-7.0%-4.4%-7.4%
30 Day0.7%-2.0%-3.6%
90 Day-2.2%8.7%-0.6%
1 Year39.2%35.7%30.4%28.2%12.8%10.5%
3 Year57.6%44.7%74.3%64.3%37.4%28.6%
5 Yearn/a151.0%125.6%61.3%43.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

116.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWRS ($12.81) is trading above our estimate of fair value ($2.36)

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


Price To Earnings Ratio

PE vs Industry: GWRS is poor value based on its PE Ratio (116.3x) compared to the Water Utilities industry average (38.1x).

PE vs Market: GWRS is poor value based on its PE Ratio (116.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GWRS is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: GWRS is overvalued based on its PB Ratio (10.5x) compared to the US Water Utilities industry average (2.8x).


Next Steps

Future Growth

How is Global Water Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWRS's forecast earnings growth (23.1% per year) is above the savings rate (1.7%).

Earnings vs Market: GWRS's earnings (23.1% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: GWRS's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GWRS's revenue (5.2% 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 GWRS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Global Water Resources performed over the past 5 years?

-58.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWRS has high quality earnings.

Growing Profit Margin: GWRS's current net profit margins (6.8%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: GWRS's earnings have declined by -58.1% per year over the past 5 years.

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

Earnings vs Industry: GWRS had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the Water Utilities industry average (1%).


Return on Equity

High ROE: GWRS's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Global Water Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GWRS's short term assets ($16.3M) exceed its short term liabilities ($11.0M).

Long Term Liabilities: GWRS's short term assets ($16.3M) do not cover its long term liabilities ($229.1M).


Debt to Equity History and Analysis

Debt Level: GWRS's debt to equity ratio (434%) is considered high.

Reducing Debt: GWRS's debt to equity ratio has reduced from 442.1% to 434% over the past 5 years.

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

Interest Coverage: GWRS's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.9%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GWRS's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: GWRS's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GWRS has been paying a dividend for less than 10 years.

Growing Dividend: GWRS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (261.7%), GWRS'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?

4.8yrs

Average management tenure


CEO

Ron Fleming (39yo)

4.8yrs

Tenure

US$667,553

Compensation

Mr. Ron L. Fleming has been the Chief Executive Officer and President of Global Water Resources, Inc. since May 2015 and its Chairman since November 2018. He served as Interim Chief Executive Officer of Gl ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD667.55K) is below average for companies of similar size in the US market ($USD1.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ron Fleming
Chairman4.8yrsUS$667.55k0.075% $233.6k
Michael Liebman
Senior VP5.8yrsUS$510.98k0.053% $164.9k
Heather Krupa
VP & Controller1.5yrsno data0.00089% $2.8k

4.8yrs

Average Tenure

Experienced Management: GWRS's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ron Fleming
Chairman4.8yrsUS$667.55k0.075% $233.6k
William Levine
Director16.3yrsUS$56.14k0.22% $687.0k
Richard Alexander
Independent Director9.2yrsUS$95.28k0.20% $605.1k
David Rousseau
Independent Director1yrsno datano data
David Tedesco
Lead Independent Director1.3yrsUS$90.13k0.22% $687.0k
Debra Coy
Independent Director1.8yrsUS$28.07k0.071% $220.3k
Brett Huckelbridge
Independent Director1.8yrsUS$28.07kno data

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: GWRS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

Global Water Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Global Water Resources, Inc.
  • Ticker: GWRS
  • Exchange: NasdaqGM
  • Founded: 2003
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$309.664m
  • Shares outstanding: 22.54m
  • Website: https://www.gwresources.com

Number of Employees


Location

  • Global Water Resources, Inc.
  • 21410 North 19th Avenue
  • Suite 220
  • Phoenix
  • Arizona
  • 85027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWRSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2016
GWRTSX (The Toronto Stock Exchange)YesCommon StockCACADApr 2016
GGLDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2016

Biography

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona. As of December 31, 2018, it served approximately 55,000 people in 21,000 homes. The company was founded in 2003 and is based in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:56
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.