Consolidated Water (CWCO)
NASDAQ:CWCO
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Consolidated Water Co
(NASDAQ:CWCO)
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Rating:69Neutral
Price Target:
$33.00
â–¼(-7.30% Downside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by strong financial quality (very low leverage, solid profitability, and positive free cash flow). It is held back by weak technical momentum and a relatively high P/E, while the latest earnings call points to near-term pressure (revenue/earnings down) but a supportive medium-term setup from strong liquidity, services growth, and backlog expected to convert in 2026.
Positive Factors
Conservative Balance Sheet
An almost debt-free capital structure and sizable equity provide durable financial flexibility: management can fund organic projects, absorb operating cyclicality, maintain dividends, and pursue targeted acquisitions without refinancing risk, supporting multi-year growth execution.
Negative Factors
Revenue and Manufacturing Weakness
A sharp drop in manufacturing and an overall revenue decline signal weaker demand and order timing risk that can persist beyond a quarter. Reduced manufacturing volumes compress margins and limit revenue diversification, weighing on medium‑term growth until orders recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
An almost debt-free capital structure and sizable equity provide durable financial flexibility: management can fund organic projects, absorb operating cyclicality, maintain dividends, and pursue targeted acquisitions without refinancing risk, supporting multi-year growth execution.
Read all positive factors
Consolidated Water Co (CWCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.25M
Dividend Yield1.4%
Average Volume (3M)107.33K
Price to Earnings (P/E)27.5
Beta (1Y)0.55
Revenue Growth0.26%
EPS Growth-35.19%
CountryUS
Employees307
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)1.09
Shares Outstanding16,000,190
10 Day Avg. Volume117,816
30 Day Avg. Volume107,326
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 Cap0.74
Enterprise Value/Revenue2.74
Enterprise Value/Gross Profit7.50
Enterprise Value/Ebitda14.13
Forecast
1Y Price Target
$43.00Price Target Upside20.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.05
Revenue Forecast (FY)$135.10M
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 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 CWC...
Consolidated Water Co Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: near-term top-line and profitability were pressured (total revenue down 11%, manufacturing down 76%, net income and gross profit lower), and there are execution risks (CW-Bahamas receivables, Hawaii permitting). Offsetting these weaknesses are strong liquidity ($126.3M cash), no debt, meaningful growth in services/O&M (+15% and $8.9M), stable/expanding bulk operations, awarded projects with >$13M of remaining revenue expected in 2026, and an encouraging project pipeline and secular market drivers that support medium-term growth.Positive Updates
Strong Liquidity and Balance Sheet
Cash and cash equivalents of $126.3 million as of March 31, 2026 (up $18.5 million from the year-ago quarter), working capital of $144.3 million (up $8.1 million YoY), stockholders' equity of $223.6 million, and no significant outstanding debt.
Negative Updates
Overall Revenue Decline
Total Q1 2026 revenue was $30.0 million, down 11% versus Q1 2025, driven primarily by declines in manufacturing and retail segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Liquidity and Balance Sheet
Cash and cash equivalents of $126.3 million as of March 31, 2026 (up $18.5 million from the year-ago quarter), working capital of $144.3 million (up $8.1 million YoY), stockholders' equity of $223.6 million, and no significant outstanding debt.
Read all positive updates
Company Guidance
Management guided that Q1 2026 revenue totaled $30.0 million, down 11% year-over-year as manufacturing revenue fell $4.4M (‑76% to $1.4M) and retail revenue declined $0.834M with Grand Cayman retail volume down 10.2%, partly offset by bulk up $0.333M and services up $1.2M (O&M revenue $8.9M, +15%, including a new 3‑year contract expected to generate ~$4.5M over three years and about $500k of incremental O&M from additional work); gross profit was $10.9M (36% of revenue) vs $12.3M (37%) a year ago and net income from continuing operations was $3.8M ($0.24 diluted) vs $4.9M ($0.31). On the balance sheet CW‑Bahamas A/R was $23.9M (vs $20.7M at 12/31/25), cash was $126.3M (up ~$18.5M year‑over‑year), working capital $144.3M (up $8.1M), stockholders’ equity $223.6M, and no significant debt; projected liquidity needs include ~$8.6M of 2026 capex and ~$2.3M of dividends paid in April with future dividends under board consideration. Looking ahead, management expects full‑year 2026 manufacturing revenue to be below 2025’s record (though backlog should drive improvement), remaining revenue of more than $13M from two PERC projects (including a $3.9M Colorado expansion and $11.7M California project) to be realized primarily in 2026, the second Cat Island desal plant to be commissioned this quarter, and the 1.7 MGD Hawaii desalination construction to commence later in the year, while tourism (stay‑over arrivals +11.1% in Q1; record March) should support retail volumes in Q2.Consolidated Water Co Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 128.33M | 132.07M | 133.97M | 180.21M | 94.10M | 66.86M |
| Gross Profit | 46.86M | 47.57M | 45.62M | 61.93M | 30.36M | 23.51M |
| EBITDA | 24.89M | 29.01M | 27.47M | 44.72M | 15.97M | 10.57M |
| Net Income | 17.32M | 18.34M | 28.24M | 29.59M | 5.86M | 875.58K |
Balance Sheet | ||||||
| Total Assets | 260.16M | 257.57M | 243.31M | 218.44M | 193.01M | 176.35M |
| Cash, Cash Equivalents and Short-Term Investments | 126.33M | 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 | 31.40M | 30.89M | 28.00M | 26.61M | 25.24M | 10.69M |
| Stockholders Equity | 223.57M | 221.65M | 209.96M | 186.83M | 159.67M | 157.58M |
Cash Flow | ||||||
| Free Cash Flow | 27.87M | 33.17M | 29.82M | 2.92M | 13.79M | 5.48M |
| Operating Cash Flow | 36.50M | 41.71M | 36.52M | 7.97M | 21.33M | 6.97M |
| Investing Cash Flow | -8.55M | -8.44M | 26.96M | -10.89M | -4.98M | -3.94M |
| Financing Cash Flow | -9.47M | -8.95M | -6.71M | -5.52M | -6.30M | -5.86M |
Consolidated Water Co Technical Analysis
Negative
35.60
Price Trends
31.25
Negative
33.27
Negative
34.00
Negative
Market Momentum
-0.38
Negative
36.19
Neutral
24.37
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 35.6 is above the 20-day moving average (MA) of 29.89, above the 50-day MA of 31.25, and above the 200-day MA of 34.00, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 24.37 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $478.25M | 27.51 | 7.85% | 1.40% | 0.26% | -35.19% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $334.36M | 14.28 | 9.36% | 3.87% | 5.06% | 8.72% | |
63 Neutral | $969.58M | 21.80 | 9.07% | 2.67% | 1.76% | -0.20% | |
58 Neutral | $478.66M | 20.04 | 8.89% | 2.68% | 4.38% | 7.70% | |
55 Neutral | $2.71B | 22.69 | 6.96% | 2.88% | 4.20% | -12.47% | |
50 Neutral | $203.93M | 101.95 | 2.37% | 3.56% | 5.69% | -68.06% |
* Utilities Sector Average
CWCO
Consolidated Water Co
29.02
-0.51
-1.72%
ARTNA
Artesian Resources
32.14
-0.79
-2.39%
CWT
California Water Service
45.20
-0.96
-2.08%
MSEX
Middlesex Water Company
51.78
-4.19
-7.49%
YORW
The York Water Company
29.50
-2.39
-7.49%
GWRS
Global Water Resources
6.90
-3.50
-33.65%
Consolidated Water Co Corporate Events
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...
Executive/Board Changes
Consolidated Water Promotes Vizzini to EVP, CAO Role
Positive
Apr 7, 2026
On April 1, 2026, Consolidated Water Co. Ltd. promoted Douglas Vizzini from Vice President of Finance to Executive Vice President and Chief Accounting Officer and entered into an employment agreement running through December 31, 2027, with potenti...
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.