Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $531.79M
• Dividend Yield: 1.51%
• Average Volume (3M): 95.78K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.61
• Revenue Growth: -17.62%
• EPS Growth: -54.25%
• Country: US
• Employees: 307
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.34
• Shares Outstanding: 15,931,336
• 10 Day Avg. Volume: 68,756
• 30 Day Avg. Volume: 95,775
• PEG Ratio: -2.73
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 13.75
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 9.70
• Enterprise Value/Ebitda: 18.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $36.00 ▲(4.53% Upside)

Consolidated Water Co's overall stock score reflects strong financial performance and a positive outlook from the latest earnings call, highlighting growth in key segments and strategic expansion. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The company's modest dividend yield provides limited income support.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand and effective business strategies, supporting long-term financial health and market presence.

New Project Awards

Securing new projects enhances future revenue streams and strengthens market position, indicating successful strategic expansion efforts.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial flexibility and resilience, supporting long-term growth and investment capabilities.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to invest in growth opportunities and manage liquidity, posing long-term financial challenges.

Net Profit Margin Decrease

A declining net profit margin can signal rising costs or pricing pressures, potentially affecting profitability and competitiveness over time.

Bulk Segment Revenue Decline

A decline in bulk segment revenue could indicate challenges in maintaining market share or pricing power in key operational areas.

Consolidated Water Co Business Overview & Revenue Model

Company Description

Consolidated Water Co. Ltd. is a leading water services company that specializes in the production and distribution of potable water, primarily serving the Caribbean and other international markets. The company operates in several sectors, including desalination, water treatment, and wastewater management. Its core products and services include the operation of desalination plants, water supply management, and the provision of utility services to residential and commercial customers.

How the Company Makes Money

Consolidated Water Co. generates revenue primarily through the sale of water to customers in its service areas, which include various islands in the Caribbean. The company operates several desalination plants that produce fresh water from seawater, and it charges customers based on the volume of water supplied. Key revenue streams include residential and commercial water sales, as well as contracts with governmental and industrial entities for water supply. Additionally, CWCO engages in the operation and management of water treatment facilities, which can provide further income through service fees. Significant partnerships with local governments and private sector clients enhance its earnings potential, as these collaborations often involve long-term contracts that ensure stable cash flows.

Consolidated Water Co Financial Statement Overview

Summary

Consolidated Water Co demonstrates strong revenue growth and stable profitability, supported by a solid balance sheet with low leverage. However, the decline in free cash flow growth and net profit margin suggests potential challenges in maintaining liquidity and profitability. Overall, the company is financially stable with opportunities for improvement in cash flow management.

Income Statement

Consolidated Water Co shows strong revenue growth with a TTM increase of 86.9%, indicating robust demand. The gross profit margin is stable at around 35%, and the net profit margin is healthy at 12.2% for TTM. However, the net profit margin has decreased from the previous year. EBIT and EBITDA margins are solid, reflecting efficient operations, though slightly lower than the previous year.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. Return on equity is moderate at 7.4% for TTM, showing a decline from the previous year. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Operating cash flow is strong, but free cash flow has decreased significantly by 39.4% in TTM, which could impact future investments. The operating cash flow to net income ratio is close to 1, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has declined, suggesting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.83M	133.97M	180.21M	94.10M	66.86M	72.63M
Gross Profit	46.58M	45.62M	61.93M	30.36M	23.51M	26.77M
EBITDA	24.46M	27.47M	44.72M	15.97M	10.57M	16.85M
Net Income	16.88M	28.24M	29.59M	5.86M	875.58K	3.71M
Balance Sheet
Total Assets	257.23M	243.31M	218.44M	193.01M	176.35M	179.56M
Cash, Cash Equivalents and Short-Term Investments	123.55M	99.35M	42.62M	50.71M	42.86M	43.79M
Total Debt	3.22M	3.46M	2.67M	2.47M	2.94M	1.61M
Total Liabilities	31.03M	28.00M	26.61M	25.24M	10.69M	10.54M
Stockholders Equity	220.38M	209.96M	186.83M	159.67M	157.58M	160.91M
Cash Flow
Free Cash Flow	12.62M	29.82M	2.92M	13.79M	5.48M	6.21M
Operating Cash Flow	19.78M	36.52M	7.97M	21.33M	6.97M	17.34M
Investing Cash Flow	-7.18M	26.96M	-10.89M	-4.98M	-3.94M	-11.12M
Financing Cash Flow	-5.39M	-6.71M	-5.52M	-6.30M	-5.86M	-5.17M

Consolidated Water Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWCO, the sentiment is Neutral. The current price of 34.44 is below the 20-day moving average (MA) of 34.62, below the 50-day MA of 34.68, and above the 200-day MA of 29.71, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CWCO.

Consolidated Water Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTNA	70 Outperform	$322.33M	14.13	9.25%	3.98%	5.80%	12.33%
YORW	69 Neutral	$462.63M	23.02	8.58%	2.69%	3.63%	-5.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	66 Neutral	$2.69B	19.76	8.19%	2.79%	-2.60%	-33.78%
CWCO	65 Neutral	$531.79M	31.74	8.10%	1.51%	-17.62%	-54.25%
GWRS	59 Neutral	$256.16M	54.50	6.30%	3.60%	7.06%	-38.94%
MSEX	55 Neutral	$933.03M	21.36	9.27%	2.71%	6.24%	3.35%

Consolidated Water Co Corporate Events

Consolidated Water Reports Increased Revenue and Profit

Consolidated Water Co. Ltd. is a company that supplies potable water, treats wastewater, and provides water-related products and services across the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands, specializing in reverse osmosis technology for water production. In its latest earnings report for the quarter ended September 30, 2025, Consolidated Water reported a revenue of $35.1 million, showing an increase from $33.4 million in the same period last year. The company’s net income attributable to stockholders was $5.5 million, up from $4.5 million in the previous year. Key financial metrics indicate a gross profit of $12.9 million, with a notable increase in services and manufacturing revenue. The company also declared dividends of $0.14 per share, reflecting a positive trend compared to the previous year. Looking ahead, Consolidated Water remains focused on expanding its services and maintaining steady growth across its operational regions, as indicated by the management’s outlook.

Consolidated Water Co Expands Board with New Directors

On October 1, 2025, Consolidated Water Co. Ltd. expanded its Board of Directors from eight to eleven members by appointing Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández as new independent directors. This strategic move aims to enhance the company’s corporate governance and expertise in the water industry, potentially increasing shareholder value. Each appointee brings a wealth of experience in water infrastructure and strategic advisory roles, which is expected to bolster the company’s board capabilities and aid in executing its strategies.

The most recent analyst rating on (CWCO) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Consolidated Water Co stock, see the CWCO Stock Forecast page.

Consolidated Water’s Earnings Call Highlights Growth and Challenges

Consolidated Water’s recent earnings call painted a picture of moderate growth and strategic advancements, particularly in the manufacturing and retail sectors, with significant project developments in Hawaii. Despite these positive strides, challenges in the Caribbean segment and financial setbacks from discontinued operations were noted. The company’s robust balance sheet and increased dividend are encouraging, although slow receivables from the Bahamas remain a concern.

Consolidated Water Navigates Uncertain Waters Amid Regulatory and Trade Policy Risks

Consolidated Water faces significant business risks due to potential changes in fiscal, regulatory, and federal policies. These changes could include modifications to international trade policies, public company reporting requirements, and environmental regulations, all of which could materially impact the company. The uncertainty surrounding these legislative and regulatory proposals makes it challenging to predict their effects on the company’s operations and financial health. Additionally, escalating trade disputes, particularly involving the U.S., could further exacerbate these risks, adversely affecting Consolidated Water’s financial condition and cash flows.

Consolidated Water Reports Mixed Q2 2025 Results

Consolidated Water Co. Ltd., a company specializing in the production and supply of potable water through reverse osmosis technology, operates primarily in the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands. It also provides wastewater treatment and water-related products and services. In its latest earnings report, Consolidated Water reported a mixed financial performance for the quarter ending June 30, 2025. The company achieved a slight increase in revenue to $33.6 million compared to the previous year’s $32.5 million for the same period, though its net income from continuing operations attributable to stockholders decreased to $5.1 million from $4.2 million. Key financial metrics revealed that the company’s gross profit rose to $12.8 million from $11.6 million, driven by improvements in retail and manufacturing segments. However, general and administrative expenses increased significantly, impacting overall profitability. The company also faced challenges in its services segment, with a decline in services revenue and a net loss from discontinued operations. Looking ahead, Consolidated Water’s management remains focused on expanding its operations and enhancing its service offerings, with expectations of continued growth in its core markets.