Global Water Resources (GWRS) AI Stock Analysis

• Market Cap: $272.53M
• Dividend Yield: 3.1%
• Average Volume (3M): 85.81K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.67
• Revenue Growth: 4.33%
• EPS Growth: -13.38%
• Country: US
• Employees: 122
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.06
• Shares Outstanding: 27,473,276
• 10 Day Avg. Volume: 63,227
• 30 Day Avg. Volume: 85,808
• PEG Ratio: -1.76
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 5.28
• P/FCF Ratio: -26.41
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 7.25
• Enterprise Value/Gross Profit: 10.81
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $11.50
• Price Target Upside: 8.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $10.50 ▼(-1.32% Downside)

Global Water Resources' overall stock score reflects a mix of strengths and challenges. The company's strong operational efficiency and strategic growth initiatives are offset by valuation concerns and technical weaknesses. The earnings call provided a balanced view of growth opportunities and cost challenges, contributing positively to the score.

Global Water Resources Business Overview & Revenue Model

Company Description

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona. As of December 31, 2020, it served approximately 74,048 people in approximately 27,630 homes. The company was founded in 2003 and is based in Phoenix, Arizona.

How the Company Makes Money

GWRS generates revenue primarily through the sale of water services to residential, commercial, and industrial customers. The company operates under a regulated utility model, which allows it to charge customers based on approved rates set by regulatory bodies. Key revenue streams include water sales, service fees, and wastewater treatment charges. Additionally, GWRS may benefit from partnerships with municipalities and other government entities for infrastructure projects, as well as potential grants or incentives related to water conservation and sustainability initiatives. The company's focus on efficient water management and conservation efforts also positions it to capitalize on growing demand for sustainable water solutions.

Global Water Resources Financial Statement Overview

Summary

Global Water Resources demonstrates strong operational efficiency and improved leverage, but faces challenges with free cash flow generation. The company shows resilience with positive revenue growth and stable margins, but needs to address its free cash flow issues to enhance financial stability.

Income Statement

Global Water Resources shows a strong gross profit margin of 67% in the TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 10.3% from 10.9% in the previous year. Revenue growth is positive at 1.37% TTM, recovering from a slight decline in the previous year. The EBIT and EBITDA margins remain robust, reflecting stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.07 in the TTM from 2.62, indicating a substantial reduction in leverage. Return on equity has decreased to 8.9% from 12.1%, suggesting a decline in profitability relative to equity. The equity ratio is strong, reflecting a solid capital structure.

Cash Flow

Operating cash flow remains healthy, but free cash flow is negative, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, suggesting that the company is not generating sufficient free cash flow relative to its net income. However, the operating cash flow to net income ratio remains strong, showing good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.27M	52.69M	53.03M	44.73M	41.91M	38.63M
Gross Profit	36.39M	38.97M	40.36M	33.84M	31.61M	29.09M
EBITDA	27.20M	27.06M	27.50M	20.55M	19.45M	16.28M
Net Income	5.57M	5.79M	7.98M	5.51M	3.61M	1.10M
Balance Sheet
Total Assets	449.38M	405.14M	361.10M	323.09M	294.07M	283.45M
Cash, Cash Equivalents and Short-Term Investments	10.22M	9.05M	3.09M	6.56M	12.64M	18.03M
Total Debt	5.50M	124.77M	109.46M	110.90M	112.91M	114.69M
Total Liabilities	372.64M	357.53M	312.48M	278.69M	264.05M	251.26M
Stockholders Equity	76.74M	47.60M	48.62M	44.39M	30.03M	32.19M
Cash Flow
Free Cash Flow	-38.47M	-10.54M	3.08M	-10.65M	2.14M	5.43M
Operating Cash Flow	17.04M	21.79M	25.39M	23.34M	20.39M	14.57M
Investing Cash Flow	-55.66M	-32.48M	-28.60M	-34.19M	-20.32M	-9.44M
Financing Cash Flow	31.30M	17.09M	406.00K	4.97M	-7.93M	7.09M

Global Water Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWRS, the sentiment is Negative. The current price of 10.64 is above the 20-day moving average (MA) of 10.46, above the 50-day MA of 10.09, and above the 200-day MA of 10.35, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWRS.

Global Water Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	―	$265.06M	19.51	10.47%	―	40.29%	124.50%
CWCO	―	$539.44M	34.56	7.94%	1.47%	-26.34%	-61.52%
ARTNA	―	$333.44M	14.84	9.34%	3.77%	7.13%	22.19%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MSEX	―	$1.04B	23.84	9.70%	2.25%	11.91%	16.88%
YORW	―	$448.07M	22.68	8.56%	2.84%	4.09%	-14.30%
GWRS	―	$272.53M	44.81	8.96%	3.10%	4.33%	-13.38%

Global Water Resources Corporate Events

Global Water Faces Rate Case Challenges in Arizona

On March 5, 2025, Global Water Resources‘ subsidiaries filed rate case applications with the Arizona Corporation Commission (ACC) seeking increased rates, which could lead to a $6.5 million revenue boost. However, on October 1, 2025, the ACC Staff and the Residential Utility Consumer Office (RUCO) presented differing recommendations, with the ACC Staff suggesting a revenue decrease and RUCO a smaller increase. The company is engaging in settlement discussions and preparing for a hearing in December 2025, with potential impacts on its financial condition depending on the ACC’s final decision expected in the first half of 2026.

The most recent analyst rating on (GWRS) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.

Global Water Resources Secures $13.1M in Private Placement

On September 30, 2025, Global Water Resources, Inc. entered into a securities purchase agreement with accredited investors for a private placement of 1,270,572 shares of common stock, raising approximately $13.1 million. This transaction, involving key stakeholders like Levine Investments Limited Partnership and board members Jonathan L. Levine and Andrew M. Cohn, reflects strategic financial maneuvering to bolster the company’s capital, potentially impacting its market position and stakeholder relations.

The most recent analyst rating on (GWRS) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.

Global Water Resources’ Earnings Call: Growth Amid Challenges

Global Water Resources’ latest earnings call painted a mixed picture, with both encouraging developments and notable challenges. The company showcased growth through strategic acquisitions, legislative backing, and significant infrastructure investments, which bolstered revenue and adjusted EBITDA. However, it also faced hurdles such as a downturn in building permits, rising operating expenses, and a slight dip in net income.

Global Water Resources Reports Q2 2025 Financial Results

Global Water Resources, Inc. is a water resource management company that operates 39 systems providing water, wastewater, and recycled water services, primarily in the growth corridors around metropolitan Phoenix and Tucson. The company is recognized for its Total Water Management approach, which maximizes the beneficial use of recycled water.