California Water Service (CWT) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: 2.57%
• Average Volume (3M): 420.50K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.18
• Revenue Growth: -2.60%
• EPS Growth: -33.78%
• Country: US
• Employees: 1,278
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 1.03
• Shares Outstanding: 59,591,340
• 10 Day Avg. Volume: 551,174
• 30 Day Avg. Volume: 420,504
• PEG Ratio: 0.05
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 2.56
• P/FCF Ratio: -14.77
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 11.42
• 1Y Price Target: $53.00
• Price Target Upside: 13.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): $1.02B

• Rating: 66 Neutral
• Price Target: $48.00 ▲(3.20% Upside)

The overall score reflects a balance of solid financial performance and positive earnings call highlights against bearish technical indicators. The company's valuation is fair, but challenges in cash flow management and potential regulatory delays weigh on the outlook. The strong dividend yield and growth prospects in Texas provide some support.

California Water Service Business Overview & Revenue Model

Company Description

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company is involved in the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as for fire protection. It offers its services to approximately 494,500 customer connections in 100 California communities; approximately 6,200 water and wastewater customer connections on the islands of Maui and Hawaii; approximately 36,400 customer connections in the Tacoma, Olympia, Graham, Spanaway, Puyallup, and Gig Harbor areas; and approximately 8,600 water and wastewater customer connections in the Belen, Los Lunas, Indian Hills, and Elephant Butte areas in New Mexico. The company also engages in the provision of non-regulated water-related services, including operating of municipally owned water systems, privately owned water, and recycled water distribution systems; water system operation, meter reading, and billing services to private companies and municipalities; leasing of communication antenna sites on its properties to telecommunication companies; and billing of optional third-party insurance programs to its residential customers, as well as provides lab services. In addition, it offers wastewater collection and treatment services. The company was founded in 1926 and is headquartered in San Jose, California.

How the Company Makes Money

California Water Service generates revenue primarily through the sale of water to its customers, which includes residential, commercial, and industrial users. The company's revenue model is based on regulated rates set by state agencies, allowing it to charge customers for the volume of water consumed as well as fixed charges for infrastructure maintenance. Key revenue streams include water sales, which are influenced by customer demand and seasonal usage patterns, and service fees for additional services such as wastewater treatment. CWT also benefits from infrastructure investments and improvements that can lead to increased efficiency and service reliability. Additionally, the company may engage in partnerships or contracts with municipalities and other entities for water supply and management, further contributing to its earnings.

California Water Service Financial Statement Overview

Summary

California Water Service demonstrates strong profitability with improving margins and reduced leverage, enhancing financial stability. However, negative free cash flow indicates potential cash management challenges that need addressing. Overall, the company is on a positive trajectory with some areas requiring attention.

Income Statement

California Water Service shows a strong gross profit margin consistently above 95%, indicating efficient cost management. The net profit margin has improved over time, reaching 13.7% in TTM, reflecting enhanced profitability. Revenue growth is positive, with a 2.1% increase in TTM, but historical fluctuations suggest some volatility. EBIT and EBITDA margins are robust, supporting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.04 in TTM, indicating reduced leverage and financial risk. Return on equity is moderate at 8.3%, suggesting reasonable profitability from equity. The equity ratio is stable, reflecting a solid capital structure, but historical high leverage poses a potential risk.

Cash Flow

Operating cash flow is positive and covers net income adequately, but free cash flow remains negative, indicating potential cash management challenges. Free cash flow growth is improving, but the negative free cash flow to net income ratio highlights ongoing cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	1.04B	794.63M	846.43M	790.91M	794.31M
Gross Profit	499.90M	989.12M	363.38M	529.45M	483.84M	406.34M
EBITDA	362.52M	424.26M	217.54M	262.72M	250.83M	244.00M
Net Income	136.39M	190.81M	51.91M	96.01M	101.13M	96.83M
Balance Sheet
Total Assets	5.52B	5.18B	4.60B	3.85B	3.62B	3.39B
Cash, Cash Equivalents and Short-Term Investments	121.61M	50.12M	39.59M	62.10M	78.38M	44.55M
Total Debt	1.52B	1.40B	1.25B	1.13B	1.11B	1.16B
Total Liabilities	3.61B	3.54B	3.17B	2.53B	2.44B	2.47B
Stockholders Equity	1.82B	1.64B	1.43B	1.32B	1.18B	921.34M
Cash Flow
Free Cash Flow	184.10M	-179.93M	-165.93M	-83.98M	-61.48M	-180.73M
Operating Cash Flow	322.74M	290.87M	217.82M	243.77M	231.72M	117.92M
Investing Cash Flow	-507.85M	-474.87M	-389.42M	-335.52M	-300.87M	-346.07M
Financing Cash Flow	201.52M	194.72M	171.54M	96.12M	104.68M	229.98M

California Water Service Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWT, the sentiment is Negative. The current price of 46.51 is below the 20-day moving average (MA) of 47.73, below the 50-day MA of 46.62, and above the 200-day MA of 46.38, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 51.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWT.

California Water Service Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTRG	74 Outperform	$11.23B	16.46	10.29%	3.20%	21.35%	20.96%
AWR	71 Outperform	$2.87B	22.86	13.73%	2.66%	10.28%	13.56%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	66 Neutral	$2.80B	20.56	8.19%	2.57%	-2.60%	-33.78%
AWK	65 Neutral	$24.99B	22.46	10.46%	2.36%	12.29%	13.13%
MSEX	62 Neutral	$1.01B	23.04	9.27%	2.25%	6.24%	3.35%
YORW	61 Neutral	$467.10M	23.64	8.56%	2.70%	4.09%	-14.30%

California Water Service Corporate Events

California Water Service Group’s Earnings Call Highlights Resilience

California Water Service Group’s recent earnings call conveyed a generally positive sentiment, highlighting strong financial performance amidst a challenging rate case cycle. The company reported significant infrastructure investments and successful debt refinancing, bolstering its financial standing. Growth in Texas and substantial PFAS settlement recoveries further enhance the outlook, although concerns about potential delays in the California rate case decision and a year-to-date revenue decrease were noted as offsetting factors.

California Water Service Group Reports Strong Q3 2025 Results

California Water Service Group, a prominent water utility company, operates in California, Hawaii, New Mexico, Washington, and Texas, providing regulated and non-regulated water and wastewater services to over 2.1 million people.

California Water Service Declares Quarterly Dividend

On October 29, 2025, California Water Service Group announced the declaration of its 323rd consecutive quarterly dividend of $0.30 per common share. This dividend will be payable on November 21, 2025, to stockholders of record as of November 10, 2025. This consistent dividend declaration underscores the company’s stable financial performance and commitment to returning value to its shareholders.

The most recent analyst rating on (CWT) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on California Water Service stock, see the CWT Stock Forecast page.

California Water Service Completes Major Debt Issuance

On October 1, 2025, California Water Service Group completed the sale and issuance of $70 million in Series A Notes and $100 million in Series B Notes, while its subsidiary, California Water Service Company, issued $200 million in First Mortgage Bonds. The proceeds from these financial transactions are intended for refinancing existing debt and general corporate purposes. The Notes and Bonds received strong ratings from S&P Global, indicating a stable financial outlook for the company and its subsidiary.

The most recent analyst rating on (CWT) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on California Water Service stock, see the CWT Stock Forecast page.