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California Water Service (CWT) AI Stock Analysis
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California Water Service
(NYSE:CWT)
The score is driven primarily by stable utility profitability and a constructive earnings-call outlook on rate base growth, rate actions, and funding visibility. Offsetting these positives are uneven free cash flow history and capital-intensity-related cash flow volatility, with technicals and valuation both reading as neutral-to-slightly-supportive rather than strongly bullish.
California Water Service (CWT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.00B
- Dividend Yield
- 2.69%
- Average Volume (3M)
- 456.59K
- Price to Earnings (P/E)
- 21.6
- Beta (1Y)
- -0.09
- Revenue Growth
- 7.28%
- EPS Growth
- -2.00%
- Country
- US
- Employees
- 1,336
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Water
California Water Service Business Overview & Revenue Model
Company Description
California Water Service Group (CWT), through its various subsidiaries, operates as a water utility, delivering essential water services and related offerings across several states, including California, Washington, New Mexico, Hawaii, and Texas. The...
How the Company Makes Money
CWT makes money primarily through regulated utility revenues earned by providing water service to customers within its state-approved service territories. The company’s main revenue stream is customer water service charges (monthly service fees and v...
California Water Service Earnings Call Summary
The call was predominantly positive, with year-to-date revenue and earnings growth, record infrastructure investment, strong financing access, regulatory approvals, acquisition progress, dividend growth, and stable authorized returns. The company also reported operational challenges from lower customer usage, higher wholesale water, fuel and material costs, increased taxes and integration expenses, and potential permitting or weather-related capital timing issues. Management nevertheless expressed confidence in the 2026 plan, the California step increase, acquisition closing, and funding outlook.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said it anticipates filing around November 15th for the estimated $49 million step increase available for 2027 rates and anticipates closing the Nexus Water Group Oregon and Nevada acquisitions before the end of the year, with total integration costs between $7 million and $9 million; it projects compounded annual rate base growth of nearly 12%, reaching approximately $3.5 billion by the end of 2028 assuming planned capital investments are completed on schedule, plans for 10%-11% capital growth year over year, and expects to accelerate as much CapEx as possible in the fourth quarter; the indicated 2026 dividend is $1.34 a share, an increase of 8.1% over 2025, with a dividend growth floor of 7% and a 50%-60% payout ratio, while financing is expected to support ongoing initiatives into the first half of 2027, maybe into the first three quarters of 2027.
California Water Service Financial Statement Overview
Summary
Solid regulated-utility profitability (TTM net margin ~12.8%, EBITDA margin ~35.7%) and a workable but debt-heavy balance sheet (debt-to-equity ~0.87). The main constraint is cash flow quality: free cash flow has been negative in most recent annual periods and only turned positive in TTM, indicating ongoing capital intensity and volatility.
Income Statement
73PositiveBalance Sheet
68PositiveCash Flow
54Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 1.00B | 1.04B | 794.63M | 846.43M | 790.91M |
| Gross Profit | 697.47M | 643.46M | 989.12M | 363.38M | 530.35M | 483.77M |
| EBITDA | 383.58M | 360.17M | 424.26M | 217.54M | 263.34M | 259.87M |
| Net Income | 137.39M | 128.21M | 190.81M | 51.91M | 96.01M | 101.13M |
Balance Sheet | ||||||
| Total Assets | 6.07B | 5.67B | 5.18B | 4.70B | 3.95B | 3.62B |
| Cash, Cash Equivalents and Short-Term Investments | 45.12M | 51.82M | 50.12M | 84.97M | 85.03M | 78.38M |
| Total Debt | 1.65B | 1.62B | 1.40B | 1.25B | 1.14B | 1.10B |
| Total Liabilities | 4.17B | 3.98B | 3.54B | 3.27B | 2.62B | 2.45B |
| Stockholders Equity | 1.90B | 1.69B | 1.64B | 1.43B | 1.32B | 1.17B |
Cash Flow | ||||||
| Free Cash Flow | -266.92M | -214.43M | -179.93M | -165.93M | -83.98M | -61.48M |
| Operating Cash Flow | 310.14M | 302.56M | 290.87M | 217.82M | 243.77M | 231.72M |
| Investing Cash Flow | -578.78M | -520.14M | -474.87M | -389.42M | -335.52M | -300.87M |
| Financing Cash Flow | 237.98M | 219.26M | 194.72M | 171.54M | 96.12M | 104.68M |
California Water Service Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWT, the sentiment is Positive. The current price of 48.50 is above the 20-day moving average (MA) of 46.56, above the 50-day MA of 47.61, and above the 200-day MA of 46.26, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWT.
California Water Service Risk Analysis
California Water Service disclosed 39 risk factors in its most recent earnings report. California Water Service reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
1 New RiskCalifornia Water Service Peers Comparison
Overall Rating
ARTNA73Outperform- CWT65Neutral
MSEX62Neutral
AWR60Neutral
HTO60Neutral
YORW54Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ARTNA | 73Outperform | $348.55M | 14.59 | 9.37% | 3.78% | 5.90% | 5.30% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| CWT | 65Neutral | $3.05B | 21.58 | 7.64% | 2.69% | 7.28% | -2.00% |
| MSEX | 62Neutral | $1.09B | 20.35 | 10.06% | 2.54% | 8.95% | 16.16% |
| AWR | 60Neutral | $3.42B | 23.58 | 13.50% | 2.38% | 13.23% | 12.00% |
| HTO | 60Neutral | $2.89B | 22.80 | 5.65% | 2.91% | 4.22% | -17.13% |
| YORW | 54Neutral | $512.66M | 19.62 | 9.38% | 2.89% | 9.43% | 16.86% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CWT | California Water Service Group | 48.50 | 4.79 | 10.96% | |
| AWR | American States Water Company | 86.32 | 16.49 | 23.62% | |
| ARTNA | Artesian Resources Corporation | 33.56 | 2.70 | 8.76% | |
| MSEX | Middlesex Water | 56.79 | 8.18 | 16.82% | |
| HTO | H2o America | 59.74 | 14.99 | 33.51% | |
| YORW | The York Water | 31.59 | 1.26 | 4.15% |
California Water Service Corporate Events
California Water Service Declares 327th Consecutive Dividend
PositiveOn October 28, 2026, California Water Service Group’s board declared the company’s 327th consecutive quarterly dividend, underscoring its long history of uninterrupted shareholder payouts and financial stability. The dividend of $0.3350 p...
California Water Service announces new long-term debt financing
PositiveOn October 14, 2026, California Water Service Group agreed to issue $75 million of 6.08% Senior Unsecured Notes due 2031 and $50 million of 6.41% Senior Unsecured Notes due 2036, while its subsidiary California Water Service Company arranged to issue...
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 30, 2026