Consolidated Water Co (CWCO) AI Stock Analysis

• Market Cap: $573.69M
• Dividend Yield: 1.4%
• Average Volume (3M): 78.96K
• Price to Earnings (P/E): 34.2
• 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: 91,067
• 30 Day Avg. Volume: 78,963
• 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: 0.79
• 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: 68 Neutral
• Price Target: $37.00 ▲(7.43% Upside)

Consolidated Water Co's overall stock score is driven by strong financial performance and a positive earnings call outlook, indicating growth potential. However, technical indicators suggest a lack of momentum, and the valuation appears high, which could limit upside potential. The recent board expansion is a positive strategic move, enhancing governance and expertise.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability and expansion.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial flexibility, allowing for strategic investments and resilience against economic downturns.

Board Expansion

Expanding the board with experienced directors strengthens governance and strategic oversight, potentially driving long-term shareholder value.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to fund new projects or respond to market opportunities, affecting growth potential.

Net Profit Margin Decline

A declining net profit margin can indicate rising costs or pricing pressures, potentially impacting long-term profitability and financial health.

Bulk Segment Revenue Decline

Declining revenue in key segments may signal challenges in maintaining market share or adapting to changing cost structures, affecting overall growth.

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 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: Positive
• Last Price: 34.44
• 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 34.44 is below the 20-day moving average (MA) of 34.94, below the 50-day MA of 35.03, and above the 200-day MA of 30.33, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 61.23 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	70 Outperform	$331.57M	14.58	9.25%	3.87%	5.80%	12.33%
YORW	69 Neutral	$472.01M	23.49	8.58%	2.68%	3.63%	-5.82%
CWCO	68 Neutral	$573.69M	34.24	8.10%	1.40%	-17.62%	-54.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	65 Neutral	$2.58B	18.92	8.19%	2.88%	-2.60%	-33.78%
GWRS	58 Neutral	$245.81M	52.29	6.30%	3.56%	7.06%	-38.94%
MSEX	55 Neutral	$948.43M	21.71	9.27%	2.67%	6.24%	3.35%

Consolidated Water Co Corporate Events

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.