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CWT

California Water Service GroupNYSE:CWT Stock Report

Last Price

US$61.12

Market Cap

US$3.2b

7D

-2.2%

1Y

12.5%

Updated

21 Jan, 2022

Data

Company Financials +
CWT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health2/6
Dividends5/6

CWT Stock Overview

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

California Water Service Group Competitors

American Water Works Company

NYSE:AWK

US$29.3b

Essential Utilities

NYSE:WTRG

US$12.2b

American States Water

NYSE:AWR

US$3.4b

SJW Group

NYSE:SJW

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for California Water Service Group
Historical stock prices
Current Share PriceUS$61.12
52 Week HighUS$72.08
52 Week LowUS$51.02
Beta0.17
1 Month Change-13.24%
3 Month Change3.28%
1 Year Change12.48%
3 Year Change30.43%
5 Year Change75.89%
Change since IPO765.42%

Recent News & Updates

Jan 18

California Water Service: Do Not Buy The Dip Yet

CWT is a Dividend King, with 54 consecutive years of dividend growth. CWT has proved resilient to the coronavirus crisis. It is likely to continue raising its dividend for many more years. However, it is richly valued right now.

Jan 17
Is California Water Service Group (NYSE:CWT) A Risky Investment?

Is California Water Service Group (NYSE:CWT) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jan 02
Here's Why I Think California Water Service Group (NYSE:CWT) Might Deserve Your Attention Today

Here's Why I Think California Water Service Group (NYSE:CWT) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Nov 04
California Water Service Group's (NYSE:CWT) Promising Earnings May Rest On Soft Foundations

California Water Service Group's (NYSE:CWT) Promising Earnings May Rest On Soft Foundations

California Water Service Group's ( NYSE:CWT ) stock was strong after they reported robust earnings. However, our...

Shareholder Returns

CWTUS Water UtilitiesUS Market
7D-2.2%-1.9%-6.1%
1Y12.5%2.8%4.2%

Return vs Industry: CWT exceeded the US Water Utilities industry which returned 3.3% over the past year.

Return vs Market: CWT exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is CWT's price volatile compared to industry and market?
CWT volatility
CWT Average Weekly Movement3.3%
Water Utilities Industry Average Movement3.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
19261,192Marty Kropelnickihttps://www.calwatergroup.com

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, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as for fire protection. The company offers its services to approximately 492,600 customer connections in 100 California communities; approximately 5,300 water and wastewater customer connections on the islands of Maui and Hawaii; approximately 36,600 customer connections in the Tacoma, Olympia, Graham, Spanaway, Puyallup, and Gig Harbor areas; and approximately 8,500 water and wastewater customer connections in the Belen, Los Lunas, Indian Hills, and Elephant Butte areas in New Mexico.

California Water Service Group Fundamentals Summary

How do California Water Service Group's earnings and revenue compare to its market cap?
CWT fundamental statistics
Market CapUS$3.22b
Earnings (TTM)US$113.12m
Revenue (TTM)US$806.74m

28.4x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWT income statement (TTM)
RevenueUS$806.74m
Cost of RevenueUS$383.79m
Gross ProfitUS$422.94m
ExpensesUS$309.82m
EarningsUS$113.12m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.15
Gross Margin52.43%
Net Profit Margin14.02%
Debt/Equity Ratio105.7%

How did CWT perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

41%

Payout Ratio

Valuation

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

28.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWT ($61.12) is trading above our estimate of fair value ($30.82)

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 (28.4x) compared to the US Water Utilities industry average (35.9x).

PE vs Market: CWT is poor value based on its PE Ratio (28.4x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: CWT is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: CWT's PB Ratio (2.9x) is in line with the US Water Utilities industry average.


Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWT's forecast earnings growth (3.8% per year) is above the savings rate (2%).

Earnings vs Market: CWT's earnings (3.8% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: CWT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CWT's revenue (3.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CWT's revenue (3.8% 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 (8.8%).


Past Performance

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

16.2%

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 (11.8%).


Past Earnings Growth Analysis

Earnings Trend: CWT's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: CWT's earnings growth over the past year (22.1%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: CWT earnings growth over the past year (22.1%) exceeded the Water Utilities industry 15.3%.


Return on Equity

High ROE: CWT's Return on Equity (10.1%) 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 ($393.4M) exceed its short term liabilities ($360.9M).

Long Term Liabilities: CWT's short term assets ($393.4M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: CWT's net debt to equity ratio (93.2%) is considered high.

Reducing Debt: CWT's debt to equity ratio has increased from 94.9% to 105.7% over the past 5 years.

Debt Coverage: CWT's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: CWT's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWT's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: CWT's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (40.6%), CWT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWT's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Marty Kropelnicki (54 yo)

9.25yrs

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 ($USD3.78M) is about average for companies of similar size in the US market ($USD5.23M).

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 years average tenure).


Board Members

Experienced Board: CWT's board of directors are considered experienced (7.1 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 5.6%.


Top Shareholders

Company Information

California Water Service Group's 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
  • Implied Market Cap: US$3.215b
  • Shares outstanding: 52.61m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:35
End of Day Share Price2022/01/21 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.