Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $421.79M
• Dividend Yield: 1.6%
• Average Volume (3M): 134.84K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.65
• Revenue Growth: -31.57%
• EPS Growth: -18.12%
• Country: US
• Employees: 307
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Water
• EPS (TTM): 0.31
• Shares Outstanding: 15,916,685
• 10 Day Avg. Volume: 137,363
• 30 Day Avg. Volume: 134,836
• PEG Ratio: N/A
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.06
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $38.00
• Price Target Upside: 43.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Consolidated Water Co's overall stock score reflects a solid financial performance with strong profitability and balance sheet stability. The technical indicators suggest a cautious market sentiment, while valuation remains fair. The mixed results from the earnings call, including revenue decline in some segments, are notable factors impacting the score.

Consolidated Water Co Business Overview & Revenue Model

Company Description

Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. It uses reverse osmosis technology to produce potable water from seawater. The company produces and supplies water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It also provides design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.

How the Company Makes Money

Consolidated Water Co. makes money primarily through the sale of potable water produced by its desalination plants. The company operates under long-term contracts with government entities and private sector customers, ensuring a steady stream of revenue. These contracts often include fixed charges and variable charges based on water consumption, providing a reliable income structure. Additionally, CWCO generates revenue through its water distribution services, management of water treatment plants, and occasionally through the construction of new water infrastructure. Partnerships with local governments and private enterprises are crucial, enabling the company to expand its operations and maintain a strong presence in its operating regions.

Consolidated Water Co Financial Statement Overview

Summary

Consolidated Water Co presents a generally healthy financial performance. The income statement indicates strong profitability margins despite slight revenue decline. The balance sheet is robust with low leverage and high equity, supporting long-term stability. Cash flow metrics are positive but require attention due to potential anomalies.

Income Statement

Consolidated Water Co has demonstrated a solid income statement performance with a consistent gross profit margin and significant net income growth. The TTM data shows stable gross profit and net profit margins of 34.4% and 20.8%, respectively. However, there is a revenue decline of 4.5% compared to the previous annual report. EBIT and EBITDA margins are healthy at 12.2% and 17.7%. These metrics indicate profitability but highlight a slight revenue contraction.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.003, indicating minimal leverage. The equity ratio is strong at 85.2%, showcasing financial stability and low liability risk. Return on Equity (ROE) is 12.4%, reflecting efficient use of equity to generate profits. The overall strong equity position supports financial health despite slight fluctuations in assets and liabilities.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 17.2% in the TTM. The operating cash flow to net income ratio is 1.61, suggesting effective cash conversion. The free cash flow to net income ratio is 1.32, indicating the company generates substantial cash relative to net income. However, the presence of high investing cash flow figures suggests potential anomalies or data errors that need attention.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
127.99M	133.97M	180.21M	94.10M	66.86M	72.63M
	Gross Profit
44.05M	45.62M	61.93M	30.36M	23.51M	26.77M
	EBIT
15.58M	18.28M	37.17M	3.74M	-948.56K	2.05M
	EBITDA
22.64M	27.47M	44.72M	15.97M	10.57M	16.34M
	Net Income Common Stockholders
26.55M	28.24M	29.59M	9.34M	4.08M	9.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.85M	99.35M	42.62M	50.71M	42.86M	43.79M
	Total Assets
250.37M	244.43M	218.44M	193.01M	177.03M	179.56M
	Total Debt
733.69K	3.46M	2.67M	2.47M	2.94M	1.61M
	Net Debt
-107.12M	-95.89M	-39.95M	-48.24M	-37.41M	-42.19M
	Total Liabilities
31.56M	28.00M	26.61M	25.24M	11.36M	10.54M
	Stockholders Equity
213.30M	10.00T>	186.83M	159.67M	157.58M	160.91M
Cash Flow		Free Cash Flow
34.96M	29.82M	2.92M	13.79M	5.48M	15.61M
	Operating Cash Flow
42.73M	36.52M	7.97M	21.33M	6.97M	17.34M
	Investing Cash Flow
26.96T	26.96M	-10.89M	-4.98M	-3.94M	-11.12M
	Financing Cash Flow
-6.94M	-6.71M	-5.52M	-6.30M	-5.86M	-5.17M

Consolidated Water Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWCO, the sentiment is Positive. The current price of 26.5 is above the 20-day moving average (MA) of 23.93, above the 50-day MA of 24.82, and above the 200-day MA of 25.59, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWCO.

Consolidated Water Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	77 Outperform	$261.23M	18.46	11.12%	―	58.77%	116.91%
ARTNA	74 Outperform	$349.70M	16.31	9.04%	3.52%	8.31%	21.97%
MSEX	72 Outperform	$1.05B	24.36	9.80%	2.28%	16.02%	18.29%
CWCO	69 Neutral	$421.79M	15.97	7.83%	1.60%	-31.57%	-18.12%
Sector *	63 Neutral	$8.53B	10.18	4.66%	4.38%	3.77%	-12.97%
GWRS	61 Neutral	$286.04M	44.53	9.11%	2.90%	3.94%	-8.78%
YORW	58 Neutral	$473.63M	24.05	8.63%	2.61%	3.45%	-19.90%

Consolidated Water Co Corporate Events

Consolidated Water Co Secures New Water Concession

On February 18, 2025, Consolidated Water Co. Ltd.’s subsidiary, Cayman Water Company, received a new water production and supply concession from the Cayman Islands government, allowing it to continue its exclusive rights to produce and supply potable water in Grand Cayman. This concession is a significant step towards securing a new operating license from the Cayman Islands utility regulator, OfReg, which is expected to involve restructuring the previous terms. The outcome of these negotiations could impact the company’s financial condition and operations, as the new license terms may affect its operating income and cash flows.