Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $521.28M
• Dividend Yield: 1.44%
• Average Volume (3M): 105.45K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.65
• Revenue Growth: -26.34%
• EPS Growth: -61.52%
• Country: US
• Employees: 307
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Water
• EPS (TTM): 0.32
• Shares Outstanding: 15,926,801
• 10 Day Avg. Volume: 126,728
• 30 Day Avg. Volume: 105,452
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 16.72
• 1Y Price Target: $37.00
• Price Target Upside: 14.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $34.00 ▲(5.04% Upside)

Consolidated Water Co's overall stock score reflects its strong financial performance and positive earnings call insights. However, technical indicators suggest potential overbought conditions, and valuation metrics indicate the stock may be overvalued. The company's strategic advancements and robust balance sheet are significant positives, but challenges in certain segments and high P/E ratio weigh on the score.

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

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 exhibits strong financial health with robust profitability margins and a solid balance sheet. Despite a slight revenue decline, the company maintains high equity and low leverage, ensuring financial stability. Cash flow metrics are positive, indicating efficient cash conversion and growth in free cash flow.

Income Statement

Consolidated Water Co has demonstrated a solid income statement performance with a consistent gross profit margin and significant net income growth. The TTM data shows stable gross profit and net profit margins of 34.4% and 20.8%, respectively. However, there is a revenue decline of 4.5% compared to the previous annual report. EBIT and EBITDA margins are healthy at 12.2% and 17.7%. These metrics indicate profitability but highlight a slight revenue contraction.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.003, indicating minimal leverage. The equity ratio is strong at 85.2%, showcasing financial stability and low liability risk. Return on Equity (ROE) is 12.4%, reflecting efficient use of equity to generate profits. The overall strong equity position supports financial health despite slight fluctuations in assets and liabilities.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 17.2% in the TTM. The operating cash flow to net income ratio is 1.61, suggesting effective cash conversion. The free cash flow to net income ratio is 1.32, indicating the company generates substantial cash relative to net income. However, the presence of high investing cash flow figures suggests potential anomalies or data errors that need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.99M	133.97M	180.21M	94.10M	66.86M	72.63M
Gross Profit	44.05M	45.62M	61.93M	30.36M	23.51M	26.77M
EBITDA	22.64M	27.47M	44.72M	15.97M	10.57M	16.34M
Net Income	26.55M	28.24M	29.59M	9.34M	4.08M	9.34M
Balance Sheet
Total Assets	250.37M	244.43M	218.44M	193.01M	177.03M	179.56M
Cash, Cash Equivalents and Short-Term Investments	107.85M	99.35M	42.62M	50.71M	42.86M	43.79M
Total Debt	3.26M	3.46M	2.67M	2.47M	2.94M	1.61M
Total Liabilities	31.56M	28.00M	26.61M	25.24M	11.36M	10.54M
Stockholders Equity	213.30M	10.00T>	186.83M	159.67M	157.58M	160.91M
Cash Flow
Free Cash Flow	34.56M	29.82M	2.92M	13.79M	5.48M	15.61M
Operating Cash Flow	42.33M	36.52M	7.97M	21.33M	6.97M	17.34M
Investing Cash Flow	26.96T	26.96M	-10.89M	-4.98M	-3.94M	-11.12M
Financing Cash Flow	-6.94M	-6.71M	-5.52M	-6.30M	-5.86M	-5.17M

Consolidated Water Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.37
• 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 32.37 is above the 20-day moving average (MA) of 30.01, above the 50-day MA of 29.65, and above the 200-day MA of 26.54, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 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
ARTNA	74 Outperform	$344.27M	15.34	9.34%	3.71%	7.13%	22.19%
PCYO	74 Outperform	$241.71M	17.95	10.47%	―	40.29%	124.50%
CWCO	69 Neutral	$521.28M	33.21	7.94%	1.44%	-26.34%	-61.52%
Sector *	66 Neutral	¥384.57B	7.01	9.30%	2.56%	3.14%	-4.97%
MSEX	65 Neutral	$955.42M	22.00	9.70%	2.56%	11.91%	16.88%
YORW	61 Neutral	$442.30M	22.38	8.56%	2.81%	4.09%	-14.30%
GWRS	61 Neutral	$273.08M	44.90	8.96%	3.08%	4.33%	-13.38%

Consolidated Water Co Corporate Events

Consolidated Water Co Holds Annual Shareholder Meeting

On May 27, 2025, Consolidated Water Co. Ltd. held its Annual General Meeting of Shareholders, where several key decisions were made. The meeting resulted in the election of directors, approval of executive compensation, and ratification of the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are significant for the company’s governance and financial oversight, impacting its operational and strategic direction.

The most recent analyst rating on (CWCO) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Consolidated Water Co stock, see the CWCO Stock Forecast page.

Consolidated Water Co Amends Executive Employment Terms

On May 27, 2025, Consolidated Water Co. Ltd. amended its employment agreement with Douglas Vizzini, the Vice President of Finance and Assistant Company Secretary. The amendment allows the company to terminate the agreement with three months’ notice and a severance payment, aligning termination terms with legal requirements or Vizzini’s current salary.

The most recent analyst rating on (CWCO) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Consolidated Water Co stock, see the CWCO Stock Forecast page.