NYSE:CWT

Stock Analysis Report

California Water Service Group

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with concerning outlook.


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


Market Performance


7 Day Return

3.8%

NYSE:CWT

1.0%

US Water Utilities

2.9%

US Market


1 Year Return

35.5%

NYSE:CWT

30.1%

US Water Utilities

0.2%

US Market

CWT outperformed the Water Utilities industry which returned 29.3% over the past year.

CWT outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

CWTIndustryMarket
7 Day3.8%1.0%2.9%
30 Day5.5%7.5%-2.3%
90 Day9.8%9.5%3.1%
1 Year37.7%35.5%32.6%30.1%2.4%0.2%
3 Year87.7%77.6%69.3%59.0%41.7%32.4%
5 Year156.3%130.0%150.7%124.6%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

43.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

California Water Service Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

California Water Service Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

California Water Service Group is overvalued based on earnings compared to the US Water Utilities industry average.

California Water Service Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

California Water Service Group is poor value based on expected growth next year.


Price Based on Value of Assets

California Water Service Group is overvalued based on assets compared to the US Water Utilities industry average.


Next Steps

Future Growth

How is California Water Service Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

California Water Service Group's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

California Water Service Group's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).

California Water Service Group's revenue growth is positive but not above the United States of America market average.

California Water Service Group's earnings growth is positive but not above the United States of America market average.

California Water Service Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

California Water Service Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

California Water Service Group's year on year earnings growth rate has been positive over the past 5 years.

California Water Service Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

California Water Service Group's 1-year earnings growth is negative, it can't be compared to the US Water Utilities industry average.


Return on Equity

California Water Service Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

California Water Service Group used its assets less efficiently than the US Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

California Water Service Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is California Water Service Group's financial position?


Financial Position Analysis

California Water Service Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

California Water Service Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

California Water Service Group's level of debt (134.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (85.7% vs 134.4% today).

Debt is not well covered by operating cash flow (17.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

1.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

California Water Service Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

California Water Service Group's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Marty Kropelnicki (52yo)

5.9yrs

Tenure

US$5,903,323

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. Mr. Kropelnicki has been the President of Cal ...


CEO Compensation Analysis

Marty's remuneration is about average for companies of similar size in United States of America.

Marty's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

53yo

Average Age

The tenure for the California Water Service Group management team is about average.


Board Age and Tenure

5.9yrs

Average Tenure

66yo

Average Age

The tenure for the California Water Service Group board of directors is about average.


Insider Trading

California Water Service Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$555,40020 Aug 19
Peter Nelson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUS$55.54
SellUS$52,25709 Aug 19
David Healey
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller
Shares1,000
Max PriceUS$52.26
SellUS$50,00006 Jun 19
David Healey
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller
Shares1,000
Max PriceUS$50.00
SellUS$491,02831 May 19
Peter Nelson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUS$49.17
SellUS$49,23030 May 19
Michael Luu
EntityIndividual
Role
Chief Information Officer
VP of Customer Service & Chief Information Officer
Shares1,000
Max PriceUS$49.23
SellUS$54,03414 Mar 19
Elissa Ouyang
EntityIndividual
Role
Senior Key Executive
Chief Procurement & Lead Continuous Improvement Officer
Shares1,000
Max PriceUS$54.03
SellUS$53,69113 Mar 19
Lester Snow
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$53.69
SellUS$45,17720 Nov 18
David Healey
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller
Shares1,000
Max PriceUS$45.18
SellUS$41,75614 Sep 18
David Healey
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller
Shares1,000
Max PriceUS$41.76

Ownership Breakdown


Management Team

  • Marty Kropelnicki (52yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$5.90m
  • Paul Townsley (62yo)

    VP of Corporate Development & Chief Regulatory Matters Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.06m
  • Lynne McGhee (54yo)

    VP & General Counsel

    • Tenure: 4.6yrs
    • Compensation: US$786.55k
  • Tom Smegal (52yo)

    VP, CFO & Treasurer

    • Tenure: 6.8yrs
    • Compensation: US$820.78k
  • Dave Healey (63yo)

    VP, Corporate Controller

    • Tenure: 0.0yrs
  • Michael Luu (39yo)

    VP of Customer Service & Chief Information Officer

    • Tenure: 2.6yrs
  • Ron Webb (62yo)

    Vice President of Human Resources

    • Tenure: 5.0yrs
  • Shannon Dean (51yo)

    Vice President of Corporate Communications & Community Affairs

    • Tenure: 4.6yrs
  • Rob Kuta (54yo)

    VP of Engineering and Chief Water Quality & Environmental Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: US$913.98k
  • Elissa Ouyang (50yo)

    Chief Procurement & Lead Continuous Improvement Officer

    • Tenure: 3.4yrs

Board Members

  • Marty Kropelnicki (52yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$5.90m
  • Pete Nelson (71yo)

    Non-Executive Chairman

    • Tenure: 7.6yrs
    • Compensation: US$265.57k
  • Terry Bayer (68yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$168.47k
  • Thomas Krummel (67yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$184.27k
  • Shelly Esque (58yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$92.59k
  • Rick Magnuson (63yo)

    Lead Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$212.47k
  • Lester Snow (67yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$167.17k
  • Greg Aliff (66yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$184.92k
  • Carol Pottenger (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$155.87k

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$2.681b
  • Shares outstanding: 48.14m
  • Website: https://www.calwatergroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWTNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CWT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969

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 Analysis2019/08/21 23:33
End of Day Share Price2019/08/21 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.