Want to see CWCO full AI Analyst Report?
Top Page
Consolidated Water Co
(NASDAQ:CWCO)
Select Model
Select Model
Rating:71Outperform
Price Target:
$35.00
â–²(19.37% Upside)
Action:Reiterated
Date:08/18/26
CWCO scores positively primarily due to its very strong balance sheet and solid cash generation, which provide resilience. The score is tempered by weakened revenue/earnings trends and mixed near-term operating results discussed on the earnings call, while technicals are moderately supportive. Valuation is the main constraint given the high P/E relative to the modest dividend yield.
Positive Factors
Very Low Leverage
Minimal leverage reduces financial risk and interest burden, giving CWCO flexibility to fund desalination projects, pursue acquisitions, absorb operating volatility, and maintain resilience across regulated and contracted water markets.
Negative Factors
Sharp Revenue Contraction
The pronounced TTM contraction and continuing quarterly softness indicate weakened demand or project timing in important businesses. This reduces earnings visibility and makes future growth more dependent on backlog conversion and new awards.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal leverage reduces financial risk and interest burden, giving CWCO flexibility to fund desalination projects, pursue acquisitions, absorb operating volatility, and maintain resilience across regulated and contracted water markets.
Read all positive factors
Consolidated Water Co (CWCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$500.08M
Dividend Yield1.86%
Average Volume (3M)102.07K
Price to Earnings (P/E)29.5
Beta (1Y)0.57
Revenue Growth-1.16%
EPS Growth1.76%
CountryUS
Employees293
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)1.02
Shares Outstanding16,012,865
10 Day Avg. Volume88,276
30 Day Avg. Volume102,067
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)2.54
Price to Sales (P/S)4.25
P/FCF Ratio16.94
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)0.88
Revenue Forecast (FY)$126.90M
Consolidated Water Co Business Overview & Revenue Model
Company Description
Consolidated Water Co. Ltd. (CWCO) is a specialist in providing comprehensive water solutions, primarily engaged in developing, constructing, overseeing, and operating water production and treatment facilities. Its core operations are concentrated...
How the Company Makes Money
CWCO makes money primarily by (1) producing potable water—often via seawater desalination—and selling it under long-term, contracted or regulated arrangements, and (2) providing water and wastewater services under service contracts. A major revenu...
Consolidated Water Co Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The call conveyed a cautiously optimistic but balanced outlook. Near-term financial results showed modest revenue decline (-2%), a sharp drop in manufacturing revenue (-49%), and margin/profitability compression (gross margin down 5 percentage points; net income down ~23%). Offsetting these headwinds, the company has a strong balance sheet (cash $132.6M, no significant debt), meaningful growth in bulk (revenue +20%, gross profit +27%), strategic wins and backlog (notably a $10.1M municipal order and procurement authorization of ~$6M for the Hawaii project), a 25-year Grand Cayman license that provides long-term regulatory certainty, and several service/construction wins that should support future revenues. Given the material near-term weaknesses but prominent longer-term catalysts and strong liquidity, the net takeaway is balanced and cautious.Positive Updates
Bulk Revenue Surge and Margin Improvement
Bulk revenue of $9.9M increased 20% year-over-year and bulk gross profit rose ~27%, driven primarily by higher energy pass-through charges to CW Bahamas and contributions from two newly commissioned Cat Island desalination plants (December and April commissioning).
Negative Updates
Overall Revenue Decline
Consolidated revenue totaled $32.9M for Q2 2026, a 2% decrease versus Q2 2025, with softness concentrated in manufacturing.
Read all updates
Q2-2026 Updates
Positive
Negative
Bulk Revenue Surge and Margin Improvement
Bulk revenue of $9.9M increased 20% year-over-year and bulk gross profit rose ~27%, driven primarily by higher energy pass-through charges to CW Bahamas and contributions from two newly commissioned Cat Island desalination plants (December and April commissioning).
Read all positive updates
Company Guidance
Management's guidance was cautiously optimistic: they expect full‑year 2026 manufacturing revenue to be below 2025 but to improve in future quarters given current backlog (Q2 manufacturing revenue was $2.7M, down 49% YoY) and recent orders including a $10.1M Florida purchase order (delivery scheduled Nov 2027) and the company's largest municipal membrane order to date; construction of the 1.7 MGD Kalaeloa, Hawaii desalination project is expected to start later this year (a limited notice to proceed authorizes ~ $6M of long‑lead procurements) and, once operational under an anticipated 20‑year operating term, should materially contribute to future revenue and earnings. For Q2 they reported total revenue of $32.9M (‑2% YoY) with retail $8.7M (volume down ~2% but aided by a rate increase), bulk $9.9M (+20%) and services $11.6M (+1%); bulk gross profit rose 27% while consolidated gross profit was $11.0M (33% margin) vs $12.8M (38%) a year ago, and net income from continuing operations was $4.0M ($0.25 diluted) vs $5.2M ($0.32). Balance sheet and near‑term liquidity guidance included cash of $132.6M, working capital $144.6M, stockholders' equity $225.6M, CW Bahamas AR down to $18.8M (from $20.7M at 12/31/25), projected capex for the remainder of 2026 of ~$4.8M, and $2.3M of dividends paid in July with possible future quarterly dividends if declared.Consolidated Water Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.61M | 132.07M | 133.97M | 180.21M | 94.10M | 66.86M |
| Gross Profit | 44.99M | 47.57M | 45.62M | 61.93M | 30.36M | 23.51M |
| EBITDA | 21.52M | 29.01M | 27.47M | 44.72M | 15.97M | 10.57M |
| Net Income | 16.43M | 18.34M | 28.24M | 29.59M | 5.86M | 875.58K |
Balance Sheet | ||||||
| Total Assets | 262.87M | 257.57M | 243.31M | 218.44M | 193.01M | 176.35M |
| Cash, Cash Equivalents and Short-Term Investments | 132.63M | 123.79M | 99.35M | 42.62M | 50.71M | 42.86M |
| Total Debt | 2.79M | 3.03M | 3.46M | 2.67M | 2.47M | 2.94M |
| Total Liabilities | 31.87M | 30.89M | 28.00M | 26.61M | 25.24M | 10.69M |
| Stockholders Equity | 225.64M | 221.65M | 209.96M | 186.83M | 159.67M | 157.58M |
Cash Flow | ||||||
| Free Cash Flow | 30.24M | 33.17M | 29.82M | 2.92M | 13.79M | 5.48M |
| Operating Cash Flow | 39.76M | 41.71M | 36.52M | 7.97M | 21.33M | 6.97M |
| Investing Cash Flow | -9.40M | -8.44M | 26.96M | -10.89M | -4.98M | -3.94M |
| Financing Cash Flow | -9.95M | -8.95M | -6.71M | -5.52M | -6.30M | -5.86M |
Consolidated Water Co Technical Analysis
Negative
29.32
Price Trends
29.62
Positive
30.75
Negative
32.99
Negative
Market Momentum
0.43
Negative
49.51
Neutral
35.58
Neutral
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 29.32 is below the 20-day moving average (MA) of 30.05, below the 50-day MA of 29.62, and below the 200-day MA of 32.99, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWCO.
Consolidated Water Co Risk Analysis
Consolidated Water Co disclosed 20 risk factors in its most recent earnings report. Consolidated Water Co 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
Consolidated Water Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $367.50M | 15.20 | 9.37% | 3.64% | 5.90% | 5.30% | |
71 Outperform | $500.08M | 29.46 | 7.38% | 1.91% | -1.16% | 1.76% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $3.12B | 22.29 | 7.62% | 2.50% | 6.43% | -2.99% | |
65 Neutral | $1.11B | 22.23 | 9.57% | 2.53% | 5.26% | 7.26% | |
60 Neutral | $247.64M | 80.51 | 2.37% | 4.13% | 10.77% | -49.68% | |
59 Neutral | $540.57M | 20.53 | 9.38% | 2.90% | 9.43% | 16.86% |
* Utilities Sector Average
CWCO
Consolidated Water Co
30.05
-1.80
-5.67%
ARTNA
Artesian Resources
34.95
2.99
9.34%
CWT
California Water Service
49.66
3.88
8.48%
MSEX
Middlesex Water Company
58.02
6.19
11.95%
YORW
The York Water Company
33.06
2.71
8.94%
GWRS
Global Water Resources
8.88
-0.54
-5.74%
Consolidated Water Co Corporate Events
Business Operations and Strategy
Consolidated Water Secures Major U.S. Treatment Contracts
Positive
Jul 22, 2026
On July 22, 2026, Consolidated Water reported receiving a Limited Notice to Proceed from the Honolulu Board of Water Supply, authorizing about $6 million of long‑lead equipment purchases for the Kalaeloa seawater reverse osmosis desalination...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
New Long-Term Cayman Water License Resets Regulatory Framework
Negative
Jun 24, 2026
The Cayman Islands’ Utility Regulation and Competition Office, OfReg, has approved a new 25‑year retail water license for Cayman Water Company Limited, a subsidiary of Consolidated Water Co. Ltd., covering potable water production and ...
Business Operations and StrategyStock BuybackShareholder Meetings
Consolidated Water Expands Share Capital and Governance Flexibility
Positive
Jun 5, 2026
At its Annual General Meeting on June 1, 2026, Consolidated Water Co. shareholders approved a doubling of the company’s authorized share capital to CI$25 million, allowing up to 49.8 million ordinary shares, and adopted amended constitutiona...
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.