Want to see CWCO full AI Analyst Report?
Consolidated Water Co (CWCO) AI Stock Analysis
Consolidated Water Co
(NASDAQ:CWCO)
The score is led by strong financial resilience (very low leverage and solid cash generation), which provides downside support. This is tempered by weakened revenue/profit trends and a soft technical setup with the stock trading below major moving averages. Valuation appears somewhat rich given near-term pressure, while the latest earnings call adds a modest positive tilt due to backlog and project progress despite current margin and manufacturing weakness.
Consolidated Water Co (CWCO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $435.87M
- Dividend Yield
- 2.06%
- Average Volume (3M)
- 100.40K
- Price to Earnings (P/E)
- 26.7
- Beta (1Y)
- 0.49
- Revenue Growth
- -1.16%
- EPS Growth
- 1.76%
- Country
- US
- Employees
- 293
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Water
Consolidated Water Co Business Overview & Revenue Model
Company Description
Consolidated Water Co. Ltd. (CWCO) is a specialist in providing comprehensive water solutions, primarily engaged in developing, constructing, overseeing, and operating water production and treatment facilities. Its core operations are concentrated in...
How the Company Makes Money
CWCO generates revenue primarily by producing potable water (largely via seawater desalination) and selling it under contractual arrangements to governments, utilities, and other customers. A core revenue stream comes from long-term, contract-based w...
Consolidated Water Co Earnings Call Summary
The call conveyed a cautiously optimistic but balanced outlook. Near-term financial results showed modest revenue decline (-2%), a sharp drop in manufacturing revenue (-49%), and margin/profitability compression (gross margin down 5 percentage points; net income down ~23%). Offsetting these headwinds, the company has a strong balance sheet (cash $132.6M, no significant debt), meaningful growth in bulk (revenue +20%, gross profit +27%), strategic wins and backlog (notably a $10.1M municipal order and procurement authorization of ~$6M for the Hawaii project), a 25-year Grand Cayman license that provides long-term regulatory certainty, and several service/construction wins that should support future revenues. Given the material near-term weaknesses but prominent longer-term catalysts and strong liquidity, the net takeaway is balanced and cautious.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management's guidance was cautiously optimistic: they expect full‑year 2026 manufacturing revenue to be below 2025 but to improve in future quarters given current backlog (Q2 manufacturing revenue was $2.7M, down 49% YoY) and recent orders including a $10.1M Florida purchase order (delivery scheduled Nov 2027) and the company's largest municipal membrane order to date; construction of the 1.7 MGD Kalaeloa, Hawaii desalination project is expected to start later this year (a limited notice to proceed authorizes ~ $6M of long‑lead procurements) and, once operational under an anticipated 20‑year operating term, should materially contribute to future revenue and earnings. For Q2 they reported total revenue of $32.9M (‑2% YoY) with retail $8.7M (volume down ~2% but aided by a rate increase), bulk $9.9M (+20%) and services $11.6M (+1%); bulk gross profit rose 27% while consolidated gross profit was $11.0M (33% margin) vs $12.8M (38%) a year ago, and net income from continuing operations was $4.0M ($0.25 diluted) vs $5.2M ($0.32). Balance sheet and near‑term liquidity guidance included cash of $132.6M, working capital $144.6M, stockholders' equity $225.6M, CW Bahamas AR down to $18.8M (from $20.7M at 12/31/25), projected capex for the remainder of 2026 of ~$4.8M, and $2.3M of dividends paid in July with possible future quarterly dividends if declared.
Consolidated Water Co Financial Statement Overview
Summary
Overall financial quality is supported by an exceptionally strong balance sheet (very low leverage) and solid cash generation (operating cash flow exceeds earnings and free cash flow is positive). Offsetting this, operating momentum has weakened materially, with sharply lower TTM revenue and profitability below prior highs, making near-term fundamentals less steady.
Income Statement
62PositiveBalance Sheet
90Very PositiveCash Flow
84Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.61M | 132.07M | 133.97M | 180.21M | 94.10M | 66.86M |
| Gross Profit | 44.99M | 47.57M | 45.62M | 61.93M | 30.36M | 23.51M |
| EBITDA | 23.28M | 29.01M | 27.47M | 44.72M | 15.97M | 10.57M |
| Net Income | 16.43M | 18.34M | 28.24M | 29.59M | 5.86M | 875.58K |
Balance Sheet | ||||||
| Total Assets | 262.87M | 257.57M | 243.31M | 218.44M | 193.01M | 176.35M |
| Cash, Cash Equivalents and Short-Term Investments | 132.63M | 123.79M | 99.35M | 42.62M | 50.71M | 42.86M |
| Total Debt | 2.79M | 3.03M | 3.46M | 2.67M | 2.47M | 2.94M |
| Total Liabilities | 31.87M | 30.89M | 28.00M | 26.61M | 25.24M | 10.69M |
| Stockholders Equity | 225.64M | 221.65M | 209.96M | 186.83M | 159.67M | 157.58M |
Cash Flow | ||||||
| Free Cash Flow | 30.24M | 33.17M | 29.82M | 2.92M | 13.79M | 5.48M |
| Operating Cash Flow | 39.76M | 41.71M | 36.52M | 7.97M | 21.33M | 6.97M |
| Investing Cash Flow | -9.40M | -8.44M | 26.96M | -10.89M | -4.98M | -3.94M |
| Financing Cash Flow | -9.95M | -8.95M | -6.71M | -5.52M | -6.30M | -5.86M |
Consolidated Water Co Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWCO, the sentiment is Negative. The current price of 27.22 is below the 20-day moving average (MA) of 27.83, below the 50-day MA of 28.37, and below the 200-day MA of 31.06, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWCO.
Consolidated Water Co Risk Analysis
Consolidated Water Co disclosed 20 risk factors in its most recent earnings report. Consolidated Water Co reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksConsolidated Water Co Peers Comparison
Overall Rating
PCYO78Outperform
ARTNA73Outperform- CWCO70Outperform
MSEX62Neutral
CDZI55Neutral
GWRS54Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PCYO | 78Outperform | $262.18M | 17.84 | 9.98% | ― | 22.88% | 8.17% |
| ARTNA | 73Outperform | $356.41M | 14.95 | 9.37% | 3.68% | 5.90% | 5.30% |
| CWCO | 70Outperform | $435.87M | 26.69 | 7.38% | 2.06% | -1.16% | 1.76% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| MSEX | 62Neutral | $1.15B | 21.46 | 10.06% | 2.41% | 8.95% | 16.16% |
| CDZI | 55Neutral | $322.27M | -7.16 | -206.70% | ― | -21.32% | 0.45% |
| GWRS | 54Neutral | $217.93M | 86.05 | 2.77% | 4.18% | 9.78% | -48.99% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CWCO | Consolidated Water | 27.22 | -6.72 | -19.81% | |
| ARTNA | Artesian Resources Corporation | 34.39 | 3.16 | 10.11% | |
| CDZI | Cadiz | 3.58 | -1.27 | -26.19% | |
| MSEX | Middlesex Water | 59.87 | 8.54 | 16.64% | |
| PCYO | Pure Cycle | 10.88 | -0.12 | -1.09% | |
| GWRS | Global Water Resources | 7.28 | -2.41 | -24.86% |
Consolidated Water Co Corporate Events
Consolidated Water Wins Major U.S. Design-Build Contract
PositiveOn October 8, 2026, Consolidated Water’s U.S. subsidiary PERC Water Corporation signed a $39.8 million fixed‑price design‑build agreement with the City of Pismo Beach, California for the Central Coast Blue Advanced Water Purificatio...
Consolidated Water Secures Major U.S. Treatment Contracts
PositiveOn July 22, 2026, Consolidated Water reported receiving a Limited Notice to Proceed from the Honolulu Board of Water Supply, authorizing about $6 million of long‑lead equipment purchases for the Kalaeloa seawater reverse osmosis desalination fa...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 16, 2026