Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $489.94M
• Dividend Yield: 1.4%
• Average Volume (3M): 103.07K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.64
• Revenue Growth: -17.62%
• EPS Growth: -54.25%
• Country: US
• Employees: 307
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.19
• Shares Outstanding: 15,964,209
• 10 Day Avg. Volume: 151,235
• 30 Day Avg. Volume: 103,071
• PEG Ratio: -0.87
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 4.25
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: -251.21K
• Enterprise Value/Revenue: -931.90K
• Enterprise Value/Gross Profit: -2.54M
• Enterprise Value/Ebitda: -4.76M
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.56
• Revenue Forecast (FY): $189.90M

• Rating: 64 Neutral
• Price Target: $34.00 ▼(-4.49% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

CWCO’s score is driven by strong financial footing (low leverage, strong liquidity) and a largely constructive earnings update highlighting operational growth and project pipeline. These positives are tempered by weak technical momentum (price below major moving averages with bearish MACD and oversold readings) and near-term execution/timing risks from deferred Services construction revenue and margin pressure; valuation support is limited by an unusable P/E input despite a modest dividend yield.

Positive Factors

Balance sheet & liquidity

Very strong liquidity and minimal leverage provide durable financial flexibility. With substantial cash and working capital, the company can fund capex, absorb project timing shifts, maintain the raised dividend, bid competitively on O&M contracts, and avoid refinancing stress during revenue cycles.

Recurring retail & O&M growth

Organic growth in retail volumes and recurring O&M revenue strengthens a predictable revenue base less tied to one-off projects. Expanded manufacturing capacity further diversifies revenue toward municipal/nuclear markets, supporting steadier cash generation and utilization of fixed costs over multiple operating cycles.

Project pipeline & technical progress

Awarded projects plus completed Kalaeloa technical milestones materially reduce execution risk once permits are cleared. A visible services backlog and technically proven projects support near‑to‑mid term revenue recognition and help smooth the lumpy nature of construction revenue over time.

Negative Factors

Services revenue timing risk

Heavy reliance on episodic construction awards makes reported revenue sensitive to project timing and permit approvals. When major projects complete or are delayed, consolidated revenue and cash flow can swing materially year-to-year, reducing earnings visibility and complicating capacity planning.

Margin compression

A sustained decline in gross margin percentage signals mix shifts or pricing/cost pressures. Persistent margin compression would erode operating cash generation, limit reinvestment and dividend capacity, and increase sensitivity to revenue volatility in a capital‑intensive service business.

Government receivable risk

Material receivables from public counterparties introduce credit and collection uncertainty. Delays or write‑downs would pressure working capital and cash conversion, especially given the company’s exposure to island utilities and government entities where payment timing and political decisions can be protracted.

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

CWCO primarily makes money through (1) selling potable water produced from its desalination plants and (2) providing water-related services and project work. A key revenue stream is bulk water sales under long-term supply arrangements in which CWCO (or its subsidiaries) produces desalinated water and sells it to customers (often utilities or government-related counterparties) based on contracted volumes and/or agreed pricing mechanisms. Another revenue stream comes from providing EPC and other technical services for water and wastewater infrastructure projects, where revenue is earned from project contracts (e.g., designing, building, upgrading, or operating water treatment-related facilities) and may be recognized based on project milestones or progress depending on contract terms. Additional earnings can come from operating and maintenance services tied to owned or third-party facilities and from water distribution or retail-related activities in certain markets. Significant factors influencing earnings typically include contract structure and renewals, plant utilization and operating costs (notably energy), regulatory and governmental counterparties in concession-style arrangements, and the timing/scale of service project awards and execution.

Consolidated Water Co Financial Statement Overview

Summary

Strong balance-sheet safety (very low leverage and high liquidity) and generally healthy profitability/cash generation support the score. Offsetting factors include revenue and earnings volatility (including a recent revenue dip), periods of cash-flow variability, and reduced confidence in the latest-year comparability noted in the statements analysis.

Income Statement

Results show solid profitability for a regulated utility profile, with gross margin in the low-to-mid 30% range and net margin improving meaningfully from very low levels in 2021 to strong double-digits in 2023–2024. However, revenue and earnings have been volatile year-to-year (including a revenue decline in 2024), and the 2025 annual revenue figure appears inconsistent versus prior years, which reduces confidence in trend quality for that period.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity consistently near zero to ~2%), providing strong financial flexibility. Equity and assets have grown over time, and returns on equity improved substantially from 2021 to 2023–2024, though the step-down in 2025 return on equity and the large scale jump in reported figures introduce some uncertainty around the latest-year comparability.

Cash Flow

Cash generation is generally supportive: operating cash flow covers reported earnings well in most years (notably strong in 2020 and again in 2024–2025), and free cash flow is positive across the period. The key weakness is variability—2023 showed weak conversion of earnings into cash and a sharp decline in free cash flow growth, which suggests periodic working-capital swings or investment timing impacting consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	132.07M	133.97M	180.21M	94.10M	66.86M
Gross Profit	48.38M	45.62M	61.93M	30.36M	23.51M
EBITDA	25.88M	27.47M	44.72M	15.97M	10.57M
Net Income	18.34M	28.24M	29.59M	5.86M	875.58K
Balance Sheet
Total Assets	10.00T>	243.31M	218.44M	193.01M	176.35M
Cash, Cash Equivalents and Short-Term Investments	10.00T>	99.35M	42.62M	50.71M	42.86M
Total Debt	708.60B	3.46M	2.67M	2.47M	2.94M
Total Liabilities	30.89T	28.00M	26.61M	25.24M	10.69M
Stockholders Equity	10.00T>	209.96M	186.83M	159.67M	157.58M
Cash Flow
Free Cash Flow	33.67T	29.82M	2.92M	13.79M	5.48M
Operating Cash Flow	42.21T	36.52M	7.97M	21.33M	6.97M
Investing Cash Flow	-8.44T	26.96M	-10.89M	-4.98M	-3.94M
Financing Cash Flow	-8.95M	-6.71M	-5.52M	-6.30M	-5.86M

Consolidated Water Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWCO, the sentiment is Negative. The current price of 35.6 is below the 20-day moving average (MA) of 35.66, below the 50-day MA of 36.48, and above the 200-day MA of 33.56, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 22.63 is Positive, neither overbought nor oversold. The STOCH value of 14.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWCO.

Consolidated Water Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTNA	67 Neutral	$329.24M	14.28	9.26%	3.87%	5.80%	12.33%
MSEX	67 Neutral	$944.62M	26.96	9.08%	2.67%	6.24%	3.35%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWCO	64 Neutral	$489.94M	30.64	―	1.40%	-17.62%	-54.25%
CWT	58 Neutral	$2.64B	20.13	7.68%	2.88%	-2.60%	-33.78%
YORW	58 Neutral	$436.92M	22.20	8.49%	2.68%	3.63%	-5.82%
GWRS	54 Neutral	$221.72M	-59.29	3.58%	3.56%	7.06%	-38.94%