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Consolidated Water (CWCO)
NASDAQ:CWCO
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Consolidated Water Co
(NASDAQ:CWCO)
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Rating:68Neutral
Price Target:
$37.00
â–²(3.93% 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 (CWCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$588.03M
Dividend Yield1.4%
Average Volume (3M)61.18K
Price to Earnings (P/E)35.1
Beta (1Y)0.59
Revenue Growth-17.62%
EPS Growth-54.25%
CountryUS
Employees307
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.34
Shares Outstanding15,931,336
10 Day Avg. Volume52,620
30 Day Avg. Volume61,176
Financial Highlights & Ratios
PEG Ratio-2.73
Price to Book (P/B)1.95
Price to Sales (P/S)3.06
P/FCF Ratio13.75
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue3.45
Enterprise Value/Gross Profit9.70
Enterprise Value/Ebitda18.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Consolidated Water Co Business Overview & Revenue Model
Company DescriptionConsolidated 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 MoneyConsolidated 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 Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Consolidated Water Company, with notable growth in revenue and profitability, driven by increases in the retail and manufacturing segments. Despite a decline in the bulk segment revenue and consulting revenue, the company's strategic expansion efforts and new project awards position it well for future growth.Q3-2025 Updates
Positive Updates
Overall Revenue Growth
The company's revenue for the third quarter of 2025 totaled $35.1 million, which was up 5% from the $33.4 million posted in the third quarter of 2024.
Increased Profitability
Net income from continuing operations attributable to Consolidated Water stockholders for the third quarter of 2025 was $5.6 million or $0.34 per diluted share, compared to $5 million or $0.31 per diluted share for the same period last year.
Retail and Manufacturing Segment Growth
Retail revenue increased by $184,000 due to a 6% increase in the volume of water sold. Manufacturing segment revenue increased by $305,000 or 7% to $4.7 million.
Manufacturing Facility Expansion
The completion of a new 17,500 square foot manufacturing facility expansion is expected to enhance efficiency and throughput, supporting increased production capacity.
New Contracts and Project Awards
The company was awarded two additional water treatment plant construction projects, with a combined value of approximately $15.6 million, expected to be realized primarily in 2026.
Negative Updates
Bulk Segment Revenue Decline
The Caribbean-based bulk segment revenue saw a modest decline due to lower fuel-related charges that are passed through to customers.
Decrease in Consulting Revenue
There was a decrease in consulting revenue following the completion of a major plant commissioning and start-up project in California last year.
Company Guidance
During the call, Consolidated Water Company provided guidance on their strong third-quarter 2025 performance, highlighting a 5% increase in revenue to $35.1 million compared to $33.4 million in the same quarter of 2024. The company's diversified operations, including retail water sales, services, and manufacturing, contributed to this growth. Retail revenue rose by $184,000 due to a 6% increase in water volume sold, despite lower energy prices affecting rate charges. The services segment grew by $1.6 million, driven by plant construction projects. Manufacturing revenue also increased by 7% to $4.7 million. The company's gross profit improved to $12.9 million, or 37% of total revenue, up from 35% the previous year. Net income from continuing operations attributable to shareholders rose to $5.6 million, or $0.34 per diluted share. The company reported a strong balance sheet with $123.6 million in cash and cash equivalents and no significant debt. Looking ahead, Consolidated Water anticipates growth through ongoing construction projects in Hawaii and the U.S., with new projects in Colorado and California expected to add approximately $15.6 million in revenue primarily in 2026.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.75
Positive
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.80
Positive
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.65
Positive
| 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
Positive
35.60
Price Trends
34.96
Positive
34.47
Positive
30.81
Positive
Market Momentum
0.35
Negative
64.75
Neutral
84.25
Negative
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 35.6 is below the 20-day moving average (MA) of 35.77, above the 50-day MA of 34.96, and above the 200-day MA of 30.81, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWCO.
Consolidated Water Co Risk Analysis
Consolidated Water Co disclosed 21 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $345.81M | 15.27 | 9.25% | 3.87% | 5.80% | 12.33% | |
69 Neutral | $487.31M | 24.25 | 8.58% | 2.68% | 3.63% | -5.82% | |
68 Neutral | $588.03M | 35.10 | 8.10% | 1.40% | -17.62% | -54.25% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $2.72B | 19.96 | 8.19% | 2.88% | -2.60% | -33.78% | |
59 Neutral | $990.43M | 22.67 | 9.27% | 2.67% | 6.24% | 3.35% | |
58 Neutral | $253.86M | 54.01 | 6.30% | 3.56% | 7.06% | -38.94% |
* Utilities Sector Average
CWCO
Consolidated Water Co
36.91
11.17
43.40%
ARTNA
Artesian Resources
33.37
4.01
13.66%
CWT
California Water Service
45.67
2.93
6.87%
MSEX
Middlesex Water Company
54.01
4.95
10.09%
YORW
The York Water Company
33.76
3.55
11.75%
GWRS
Global Water Resources
8.83
-2.55
-22.41%
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.