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Global Water Resources
(NASDAQ:GWRS)
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Rating:62Neutral
Price Target:
$9.50
▲(1.39% Upside)
Action:Reiterated
Date:09/06/26
The score is primarily held back by financial performance: compressed net margins, meaningful leverage, and negative free cash flow from heavy capex reduce near-term flexibility. Technicals are supportive with a clear uptrend and positive momentum signals. Valuation is a notable risk due to the very high P/E, partly balanced by a moderate dividend yield. Earnings-call commentary was broadly constructive, supported by strong quarterly growth and rate-case progress, but near-term cost and depreciation pressures remain key headwinds.
Positive Factors
Customer Growth
Growing connections expand the recurring customer base supporting regulated water, wastewater, and recycled-water revenue. Continued organic expansion in Arizona service territories can provide durable volume growth and help spread infrastructure costs across more customers over time.
Negative Factors
Negative Free Cash Flow
Recent capital spending has exceeded operating cash generation, leaving the company with sustained free-cash-flow deficits. This reduces financial flexibility and increases reliance on debt or equity funding to maintain expansion, upgrades, and replacement of essential utility infrastructure.
Read all positive and negative factors
Positive Factors
Negative Factors
Customer Growth
Growing connections expand the recurring customer base supporting regulated water, wastewater, and recycled-water revenue. Continued organic expansion in Arizona service territories can provide durable volume growth and help spread infrastructure costs across more customers over time.
Read all positive factors
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$256.28M
Dividend Yield3.42%
Average Volume (3M)104.64K
Price to Earnings (P/E)80.7
Beta (1Y)0.63
Revenue Growth10.77%
EPS Growth-49.68%
CountryUS
Employees128
SectorGeneral
Sector StrengthN/A
IndustryRegulated Water
Share Statistics
EPS (TTM)0.11
Shares Outstanding28,795,353
10 Day Avg. Volume101,341
30 Day Avg. Volume104,643
Financial Highlights & Ratios
PEG Ratio-1.42
Price to Book (P/B)2.64
Price to Sales (P/S)4.10
P/FCF Ratio-4.84
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)$59.60M
Global Water Resources Business Overview & Revenue Model
Company Description
Global Water Resources, Inc. is a water resource management firm that operates, owns, and oversees regulated utilities, primarily in the metropolitan Phoenix, Arizona area. These utilities encompass potable water supply, wastewater treatment, and ...
How the Company Makes Money
GWRS primarily makes money by operating regulated water and wastewater utilities. Its core revenue stream is service revenue from customers (residential, commercial, and other users) who are billed for potable water delivery, wastewater collection...
Global Water Resources Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives — double-digit revenue growth (Q2 +24.8%), higher adjusted EBITDA (+15% Q2), meaningful net income improvement, connection growth, ICFA-driven revenue recognition, and progress on rate cases that should enable recovery of investments. These positives are tempered by rising operating costs (O&M, medical, power), increased depreciation from the 2025 capital program, and higher interest expense, as well as some near-term permit softness. Management emphasized cost control in G&A, regulatory progress (GW-Santa Cruz settlement approximating $1.9M of additional revenue), and confidence in accelerating regional development, suggesting the company expects these headwinds to be addressed through upcoming rate recoveries and organic growth.Positive Updates
Strong Top-Line Revenue Growth
Total revenue for Q2 2026 was $17.8M, up $3.5M or 24.8% year-over-year. Year-to-date revenue rose to $31.1M, an increase of $4.4M or 16.3% compared to the prior year period.
Negative Updates
Rising Operating Expenses
Operating expenses increased approximately $1.7M or 14.1% in Q2 2026 to $13.3M (Q2 2025: $11.6M). Year-to-date operating expenses rose $3.3M or 14.6% to $26.2M, driven by higher O&M and depreciation among other items.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Revenue Growth
Total revenue for Q2 2026 was $17.8M, up $3.5M or 24.8% year-over-year. Year-to-date revenue rose to $31.1M, an increase of $4.4M or 16.3% compared to the prior year period.
Read all positive updates
Company Guidance
Management reiterated a focus on long‑term earnings growth and tight control of 2026 G&A (Q2 G&A $4.3M vs $4.4M a year ago; YTD $8.8M, +$0.2M) while expecting 2027 capital spending to be lower than 2025’s near‑record level and aiming to maintain a roughly 50/50 equity/debt capital mix. On regulatory timing, the GW‑Santa Cruz settlement contemplates approximately $1.9M of net increased revenues (effective November 1, per the release), with implementation later this year, GW‑Palo Verde timing pushed to rates expected in 2028, four utility filings (GW‑Palo Verde, GW‑Saguaro, GW‑Farmers, GW‑Ocotillo) planned in H1 2027 using a 2026 test year/2027 post‑test year (implying 2028 rates), and a GW‑Santa Cruz filing planned in 2028 using a 2027 test year (implying 2029 rates). Management expects these rate actions, combined with organic growth metrics—total active service connections up 5.8% to 69.4k as of 6/30/26, annualized 2.6% connection growth excluding seven Tucson systems, organic Y/Y connection growth ~2.7% (recently ~3.2%)—and recent operational results (Q2 total revenue $17.8M, +24.8% Y/Y; regulated Q2 revenue $15.7M, +9.9%; Q2 adjusted EBITDA $7.9M, +15%; Q2 net income $2.7M or $0.10/diluted; Q2 operating expenses $13.3M, +14.1%; depreciation +$1.1M Q2; O&M +$600K Q2; $6.6M invested in Q2 infrastructure) to drive meaningful revenue and earnings progression.Global Water Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.11M | 55.76M | 52.69M | 53.03M | 44.73M | 41.91M |
| Gross Profit | 38.97M | 25.01M | 38.97M | 40.36M | 33.84M | 31.61M |
| EBITDA | 27.66M | 25.31M | 27.06M | 27.50M | 20.55M | 19.45M |
| Net Income | 3.13M | 2.96M | 5.79M | 7.98M | 5.51M | 3.61M |
Balance Sheet | ||||||
| Total Assets | 484.15M | 482.91M | 405.14M | 361.10M | 323.09M | 294.07M |
| Cash, Cash Equivalents and Short-Term Investments | 1.46M | 4.08M | 9.05M | 3.09M | 6.56M | 12.64M |
| Total Debt | 135.94M | 138.29M | 124.77M | 109.46M | 110.90M | 112.91M |
| Total Liabilities | 399.31M | 396.30M | 357.53M | 312.48M | 278.69M | 264.05M |
| Stockholders Equity | 84.84M | 86.62M | 47.60M | 48.62M | 44.40M | 30.03M |
Cash Flow | ||||||
| Free Cash Flow | -24.34M | -47.15M | -10.54M | 3.08M | -10.65M | 2.14M |
| Operating Cash Flow | 20.50M | 20.17M | 21.79M | 25.39M | 23.34M | 20.39M |
| Investing Cash Flow | -52.94M | -75.42M | -32.48M | -28.60M | -34.19M | -20.32M |
| Financing Cash Flow | 24.94M | 50.93M | 17.09M | 406.00K | 4.97M | -7.93M |
Global Water Resources Technical Analysis
Positive
9.37
Price Trends
7.81
Positive
7.44
Positive
7.82
Positive
Market Momentum
0.37
Positive
60.00
Neutral
12.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWRS, the sentiment is Positive. The current price of 9.37 is above the 20-day moving average (MA) of 8.77, above the 50-day MA of 7.81, and above the 200-day MA of 7.82, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GWRS.
Global Water Resources Risk Analysis
Global Water Resources disclosed 48 risk factors in its most recent earnings report. Global Water Resources reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Water Resources Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $371.38M | 15.73 | 9.37% | 3.50% | 5.90% | 5.30% | |
73 Outperform | $269.65M | 18.34 | 9.98% | ― | 22.88% | 8.17% | |
71 Outperform | $468.86M | 28.71 | 7.38% | 1.91% | -1.16% | 1.76% | |
65 Neutral | $1.10B | 22.32 | 9.57% | 2.47% | 5.26% | 7.26% | |
62 Neutral | $256.28M | 80.69 | 3.63% | 3.42% | 10.77% | -49.68% | |
59 Neutral | $552.58M | 21.15 | 9.38% | 2.65% | 9.43% | 16.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
GWRS
Global Water Resources
8.90
-0.57
-6.01%
ARTNA
Artesian Resources
36.19
4.30
13.49%
CWCO
Consolidated Water Co
29.28
-3.43
-10.49%
MSEX
Middlesex Water Company
58.26
6.56
12.69%
PCYO
Pure Cycle
11.19
0.31
2.85%
YORW
The York Water Company
34.05
4.24
14.22%
Global Water Resources Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Global Water Resources Expands Revolving Credit Facility Capacity
Positive
Sep 1, 2026
Global Water Resources, Inc. has amended its revolving credit agreement with The Northern Trust Company, originally established on April 30, 2020, to adjust key financing terms. On August 28, 2026, the parties entered into an eighth modification t...
Business Operations and StrategyPrivate Placements and Financing
Global Water Resources Announces Insider-Led $10 Million Financing
Positive
Aug 21, 2026
On August 20, 2026, Global Water Resources, Inc. entered into a securities purchase agreement with a group of accredited investors for a private placement of 1,129,944 shares of common stock at $8.85 per share, raising approximately $10 million. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.