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California Water Service Group

Market Cap

US$2.9b

Last Updated

2021/05/07 03:17 UTC

Data Sources

Company Financials +

Executive Summary

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, and Hawaii. More Details


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.9%

CWT

-2.0%

US Water Utilities

-1.7%

US Market


1 Year Return

28.4%

CWT

22.8%

US Water Utilities

51.8%

US Market

Return vs Industry: CWT exceeded the US Water Utilities industry which returned 22.8% over the past year.

Return vs Market: CWT underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

CWTIndustryMarket
7 Day-0.9%-2.0%-1.7%
30 Day0.1%-0.3%1.5%
90 Day0.8%-4.9%3.1%
1 Year31.2%28.4%25.0%22.8%54.4%51.8%
3 Year53.2%45.7%66.4%57.7%63.0%52.8%
5 Year121.8%102.7%94.7%77.6%127.2%101.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is California Water Service Group undervalued compared to its fair value and its price relative to the market?

25.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWT ($57.92) is trading above our estimate of fair value ($25.35)

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


Price To Earnings Ratio

PE vs Industry: CWT is good value based on its PE Ratio (25.2x) compared to the US Water Utilities industry average (29.8x).

PE vs Market: CWT is poor value based on its PE Ratio (25.2x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CWT is overvalued based on its PB Ratio (3.2x) compared to the US Water Utilities industry average (2.8x).


Future Growth

How is California Water Service Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWT's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: CWT's earnings are forecast to decline over the next 3 years (-0.3% per year).

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

Revenue vs Market: CWT's revenue (4.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CWT's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWT's Return on Equity is forecast to be low in 3 years time (9.1%).


Past Performance

How has California Water Service Group performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWT has high quality earnings.

Growing Profit Margin: CWT's current net profit margins (14%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: CWT's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: CWT's earnings growth over the past year (126.2%) exceeds its 5-year average (12% per year).

Earnings vs Industry: CWT earnings growth over the past year (126.2%) exceeded the Water Utilities industry 10%.


Return on Equity

High ROE: CWT's Return on Equity (12.3%) is considered low.


Financial Health

How is California Water Service Group's financial position?


Financial Position Analysis

Short Term Liabilities: CWT's short term assets ($302.4M) do not cover its short term liabilities ($655.5M).

Long Term Liabilities: CWT's short term assets ($302.4M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: CWT's debt to equity ratio (129.1%) is considered high.

Reducing Debt: CWT's debt to equity ratio has increased from 94.6% to 129.1% over the past 5 years.

Debt Coverage: CWT's debt is not well covered by operating cash flow (12%).

Interest Coverage: CWT's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

What is California Water Service Group current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWT's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: CWT's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), CWT'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

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

5.2yrs

Average management tenure


CEO

Marty Kropelnicki (53 yo)

7.67yrs

Tenure

US$3,776,856

Compensation

Mr. Martin A. Kropelnicki, also known as Marty, has been the Chief Executive Officer and President of California Water Service Company since September 1, 2013 and also serves as its Director. Mr. Kropelnic...


CEO Compensation Analysis

Compensation vs Market: Marty's total compensation ($USD3.78M) is below average for companies of similar size in the US market ($USD5.41M).

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


Leadership Team

Experienced Management: CWT's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: CWT's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CWT insiders have only sold shares 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 4.4%.


Top Shareholders

Company Information

California Water Service Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: California Water Service Group
  • Ticker: CWT
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$2.937b
  • Shares outstanding: 50.84m
  • Website: https://www.calwatergroup.com

Number of Employees


Location

  • California Water Service Group
  • 1720 North First Street
  • San Jose
  • California
  • 95112-4598
  • United States

Listings


Biography

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, and Hawaii. It is involved in the production, purchase, st...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 03:17
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
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.