Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $564.45M
• Dividend Yield: 1.41%
• Average Volume (3M): 100.94K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.67
• Revenue Growth: -26.34%
• EPS Growth: -61.52%
• Country: US
• Employees: 307
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.32
• Shares Outstanding: 15,926,801
• 10 Day Avg. Volume: 95,146
• 30 Day Avg. Volume: 100,938
• PEG Ratio: -2.73
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 13.75
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 8.36
• Enterprise Value/Ebitda: 14.55
• 1Y Price Target: $40.00
• Price Target Upside: 12.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $36.00 ▲(1.58% Upside)

Consolidated Water Co's overall stock score reflects strong financial performance and a positive earnings call, indicating growth potential. The technical analysis supports a bullish trend, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is relatively expensive, which could limit upside potential. The company's strategic initiatives and strong balance sheet provide a solid foundation for future growth.

Consolidated Water Co Business Overview & Revenue Model

Company Description

Consolidated Water Co. (CWCO) is a leading water utility company primarily engaged in the production and distribution of potable water in the Caribbean and the United States. The company operates through several segments, including water production, water retailing, and wastewater services. CWCO specializes in advanced desalination technologies and operates various water supply systems, providing essential services to residential, commercial, and governmental customers. Additionally, the company is involved in the development of water-related infrastructure projects, enhancing its service offerings.

How the Company Makes Money

Consolidated Water Co. generates revenue through multiple streams, primarily from the sale of water to residential and commercial customers. The company operates water supply systems in various regions, charging customers based on consumption, which forms the bulk of its revenue. Additionally, CWCO earns income from its wastewater services and infrastructure projects, which may include construction contracts and consulting services in water management. The company also benefits from partnerships with local governments and private entities, allowing for expansion of its service areas and the implementation of new projects. Regulation and pricing agreements with local authorities further underpin its revenue stability, as these agreements often provide a predictable income stream.

Consolidated Water Co Financial Statement Overview

Summary

Consolidated Water Co demonstrates strong revenue growth and stable profitability, supported by a solid balance sheet with low leverage. However, the decline in free cash flow growth and net profit margin suggests potential challenges in maintaining liquidity and profitability. Overall, the company is financially stable with opportunities for improvement in cash flow management.

Income Statement

Consolidated Water Co shows strong revenue growth with a TTM increase of 86.9%, indicating robust demand. The gross profit margin is stable at around 35%, and the net profit margin is healthy at 12.2% for TTM. However, the net profit margin has decreased from the previous year. EBIT and EBITDA margins are solid, reflecting efficient operations, though slightly lower than the previous year.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. Return on equity is moderate at 7.4% for TTM, showing a decline from the previous year. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Operating cash flow is strong, but free cash flow has decreased significantly by 39.4% in TTM, which could impact future investments. The operating cash flow to net income ratio is close to 1, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has declined, suggesting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.10M	133.97M	180.21M	94.10M	66.86M	72.63M
Gross Profit	45.26M	45.62M	61.93M	30.36M	23.51M	26.77M
EBITDA	26.02M	27.47M	44.72M	15.97M	10.57M	16.34M
Net Income	15.80M	28.24M	29.59M	5.86M	875.58K	3.71M
Balance Sheet
Total Assets	257.50M	243.31M	218.44M	193.01M	177.03M	179.56M
Cash, Cash Equivalents and Short-Term Investments	112.25M	99.35M	42.62M	50.71M	42.86M	43.79M
Total Debt	3.48M	3.46M	2.67M	2.47M	2.94M	1.61M
Total Liabilities	35.30M	28.00M	26.61M	25.24M	10.69M	10.54M
Stockholders Equity	216.56M	209.96M	186.83M	159.67M	157.58M	160.91M
Cash Flow
Free Cash Flow	20.95M	29.82M	2.92M	13.79M	5.48M	15.61M
Operating Cash Flow	30.13M	36.52M	7.97M	21.33M	6.97M	17.34M
Investing Cash Flow	-8.76M	26.96M	-10.89M	-4.98M	-3.94M	-11.12M
Financing Cash Flow	-7.15M	-6.71M	-5.52M	-6.30M	-5.86M	-5.17M

Consolidated Water Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.44 is above the 20-day moving average (MA) of 34.77, above the 50-day MA of 33.93, and above the 200-day MA of 28.60, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 is Neutral, 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
CWCO	74 Outperform	$564.45M	35.96	7.94%	1.41%	-26.34%	-61.52%
ARTNA	73 Outperform	$344.19M	15.36	9.34%	3.65%	7.13%	22.19%
CWT	70 Neutral	$2.95B	21.65	8.49%	2.46%	0.62%	-24.24%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GWRS	66 Neutral	$289.57M	47.61	8.96%	2.88%	4.33%	-13.38%
MSEX	65 Neutral	$1.09B	25.04	9.70%	2.25%	11.91%	16.88%
YORW	64 Neutral	$461.91M	23.38	8.56%	2.74%	4.09%	-14.30%

Consolidated Water Co Corporate Events

Consolidated Water Co Expands Board with New Directors

On October 1, 2025, Consolidated Water Co. Ltd. expanded its Board of Directors from eight to eleven members by appointing Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández as new independent directors. This strategic move aims to enhance the company’s corporate governance and expertise in the water industry, potentially increasing shareholder value. Each appointee brings a wealth of experience in water infrastructure and strategic advisory roles, which is expected to bolster the company’s board capabilities and aid in executing its strategies.

The most recent analyst rating on (CWCO) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Consolidated Water Co stock, see the CWCO Stock Forecast page.

Consolidated Water’s Earnings Call Highlights Growth and Challenges

Consolidated Water’s recent earnings call painted a picture of moderate growth and strategic advancements, particularly in the manufacturing and retail sectors, with significant project developments in Hawaii. Despite these positive strides, challenges in the Caribbean segment and financial setbacks from discontinued operations were noted. The company’s robust balance sheet and increased dividend are encouraging, although slow receivables from the Bahamas remain a concern.

Consolidated Water Navigates Uncertain Waters Amid Regulatory and Trade Policy Risks

Consolidated Water faces significant business risks due to potential changes in fiscal, regulatory, and federal policies. These changes could include modifications to international trade policies, public company reporting requirements, and environmental regulations, all of which could materially impact the company. The uncertainty surrounding these legislative and regulatory proposals makes it challenging to predict their effects on the company’s operations and financial health. Additionally, escalating trade disputes, particularly involving the U.S., could further exacerbate these risks, adversely affecting Consolidated Water’s financial condition and cash flows.

Consolidated Water Reports Mixed Q2 2025 Results

Consolidated Water Co. Ltd., a company specializing in the production and supply of potable water through reverse osmosis technology, operates primarily in the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands. It also provides wastewater treatment and water-related products and services. In its latest earnings report, Consolidated Water reported a mixed financial performance for the quarter ending June 30, 2025. The company achieved a slight increase in revenue to $33.6 million compared to the previous year’s $32.5 million for the same period, though its net income from continuing operations attributable to stockholders decreased to $5.1 million from $4.2 million. Key financial metrics revealed that the company’s gross profit rose to $12.8 million from $11.6 million, driven by improvements in retail and manufacturing segments. However, general and administrative expenses increased significantly, impacting overall profitability. The company also faced challenges in its services segment, with a decline in services revenue and a net loss from discontinued operations. Looking ahead, Consolidated Water’s management remains focused on expanding its operations and enhancing its service offerings, with expectations of continued growth in its core markets.