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

4.7%

CWT

0.6%

US Water Utilities

1.8%

US Market


1 Year Return

32.3%

CWT

30.0%

US Water Utilities

7.3%

US Market

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

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


Shareholder returns

CWTIndustryMarket
7 Day4.7%0.6%1.8%
30 Day2.1%2.5%-0.7%
90 Day5.5%9.4%0.06%
1 Year34.4%32.3%32.5%30.0%9.7%7.3%
3 Year80.5%70.8%78.0%67.5%46.3%36.9%
5 Year153.5%127.4%147.9%122.1%64.5%46.5%

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?

43.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CWT ($55.51) is trading above our estimate of fair value ($17.44)

Significantly Undervalued: CWT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWT is poor value based on its PE Ratio (43.8x) compared to the Water Utilities industry average (39.5x).

PE vs Market: CWT is poor value based on its PE Ratio (43.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CWT is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CWT is overvalued based on its PB Ratio (3.7x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

How is California Water Service Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWT's forecast earnings growth (14.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CWT's earnings (14.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CWT's revenue (4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CWT's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CWT's Return on Equity is forecast to be low in 3 years time (9.8%).


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

Earnings Trend: CWT's earnings have grown by 6.6% per year over the past 5 years.

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

Earnings vs Industry: CWT had negative earnings growth (-9.5%) over the past year, making it difficult to compare to the Water Utilities industry average (2.3%).


Return on Equity

High ROE: CWT's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: CWT's Return on Assets is below or equal to the Water Utilities industry average last year.


Return on Capital Employed

ROCE Improving: CWT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is California Water Service Group's financial position?


Financial Position Analysis

Short Term Liabilities: CWT's short term assets ($206.0M) do not cover its short term liabilities ($331.4M)

Long Term Liabilities: CWT's short term assets (206.0M) do not cover its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: CWT's debt to equity ratio (134.4%) is considered high

Reducing Debt: CWT's debt to equity ratio has increased from 85.7% to 134.4% over the past 5 years.

Debt Coverage: CWT's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: CWT's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: CWT's 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?

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.7%industryaverage1.7%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CWT's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CWT's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 reasonable payout ratio (60.8%), CWT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWT's dividends in 3 years are forecast to be covered by earnings (50.8% payout ratio).


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?

4.8yrs

Average management tenure


CEO

Marty Kropelnicki (52yo)

6.1yrs

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

Compensation vs. Market: Marty's total compensation ($USD5.90M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

6.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CWT's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: CWT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,134,52004 Sep 19
Richard Magnuson
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares20,000
Max PriceUS$56.73
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

Ownership Breakdown


Management Team

  • Marty Kropelnicki (52yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$5.90m
  • Paul Townsley (62yo)

    VP of Corporate Development & Chief Regulatory Matters Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.06m
  • Lynne McGhee (54yo)

    VP & General Counsel

    • Tenure: 4.8yrs
    • Compensation: US$786.55k
  • Tom Smegal (52yo)

    VP, CFO & Treasurer

    • Tenure: 7yrs
    • Compensation: US$820.78k
  • Dave Healey (63yo)

    VP, Corporate Controller

    • Tenure: 0yrs
  • Michael Luu (39yo)

    VP of Customer Service & Chief Information Officer

    • Tenure: 2.8yrs
  • Ron Webb (62yo)

    Vice President of Human Resources

    • Tenure: 5.2yrs
  • Shannon Dean (51yo)

    Vice President of Corporate Communications & Community Affairs

    • Tenure: 4.8yrs
  • Rob Kuta (54yo)

    VP of Engineering and Chief Water Quality & Environmental Compliance Officer

    • Tenure: 0.8yrs
    • Compensation: US$913.98k
  • Elissa Ouyang (50yo)

    Chief Procurement & Lead Continuous Improvement Officer

    • Tenure: 3.6yrs

Board Members

  • Marty Kropelnicki (52yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$5.90m
  • Pete Nelson (71yo)

    Non-Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: US$265.57k
  • Terry Bayer (68yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$168.47k
  • Thomas Krummel (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$184.27k
  • Shelly Esque (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$92.59k
  • Rick Magnuson (63yo)

    Lead Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$212.47k
  • Lester Snow (67yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$167.17k
  • Greg Aliff (66yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$184.92k
  • Carol Pottenger (64yo)

    Independent Director

    • Tenure: 2.1yrs
    • 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$2.672b
  • 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 Analysis2019/10/17 23:33
End of Day Share Price2019/10/17 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.