California Water Service (CWT) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: 2.88%
• Average Volume (3M): 394.22K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.05
• 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: 255,867
• 30 Day Avg. Volume: 394,224
• 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: 1.52
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 12.28
• 1Y Price Target: $53.00
• Price Target Upside: 16.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.51
• Revenue Forecast (FY): $1.08B

• Rating: 65 Neutral
• Price Target: $47.00 ▲(2.91% Upside)

California Water Service's overall score reflects solid financial performance and a positive outlook from the earnings call, balanced by technical analysis indicating bearish momentum. The valuation is reasonable, supported by a stable dividend yield. Key risks include cash flow challenges and potential regulatory delays.

Positive Factors

Infrastructure Investments

Significant infrastructure investments indicate a commitment to long-term service reliability and operational efficiency, enhancing the company's ability to meet future demand.

Debt Refinancing

Successful debt refinancing with oversubscription suggests strong investor confidence and reduces financial risk by securing favorable long-term financing.

Texas Market Growth

Expansion in the Texas market highlights growth potential and diversification, which can drive future revenue and mitigate regional regulatory risks.

Negative Factors

Declining Revenue

A decline in operating revenue suggests challenges in maintaining growth momentum, potentially impacting profitability and cash flow.

Cash Flow Challenges

Limited cash flow conversion efficiency can constrain the company's ability to fund operations and investments, affecting long-term financial health.

Regulatory Delays

Regulatory delays can lead to uncertainty in revenue adjustments, impacting financial planning and potentially delaying infrastructure projects.

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 operates under a regulated pricing structure, where rates are set by state utility commissions based on the cost of providing service, infrastructure investments, and operational expenses. Key revenue streams include monthly water service charges, connection fees for new customers, and charges for additional services such as water quality testing and emergency services. CWT may also participate in public-private partnerships and government contracts that provide additional revenue opportunities. Factors contributing to its earnings include effective water management practices, infrastructure investments, and regulatory frameworks that allow for reasonable rate adjustments to meet operational costs and ensure service reliability.

California Water Service Financial Statement Overview

Summary

California Water Service demonstrates solid revenue growth and profitability, supported by a stable balance sheet. However, cash flow management poses challenges, with declining free cash flow growth and moderate cash flow ratios. The company should focus on improving operational efficiencies and cash flow generation to enhance financial health.

Income Statement

California Water Service shows a stable revenue growth with a TTM increase of 1.18%. The gross profit margin is strong at 49.87%, although it has decreased from the previous year. Net profit margin remains healthy at 13.61%. However, the EBIT and EBITDA margins have slightly declined, indicating some pressure on operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.84, reflecting a balanced approach to leverage. Return on equity is reasonable at 8.09%, though it has decreased compared to the previous year. The equity ratio stands at 32.91%, indicating a stable capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is moderate at 0.52, while the free cash flow to net income ratio is 0.57, suggesting limited cash flow conversion efficiency.

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	567.62M	989.12M	363.38M	530.35M	483.77M	391.62M
EBITDA	337.09M	424.26M	217.54M	263.34M	259.87M	251.65M
Net Income	136.39M	190.81M	51.91M	96.01M	101.13M	96.83M
Balance Sheet
Total Assets	5.52B	5.18B	4.70B	3.95B	3.62B	3.39B
Cash, Cash Equivalents and Short-Term Investments	75.99M	50.12M	84.97M	85.03M	78.38M	44.55M
Total Debt	1.52B	1.40B	1.25B	1.14B	1.10B	1.17B
Total Liabilities	3.82B	3.54B	3.27B	2.62B	2.45B	2.47B
Stockholders Equity	1.70B	1.64B	1.43B	1.32B	1.17B	921.34M
Cash Flow
Free Cash Flow	-180.60M	-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: Positive
• Last Price: 45.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWT, the sentiment is Positive. The current price of 45.67 is above the 20-day moving average (MA) of 43.73, above the 50-day MA of 44.46, and below the 200-day MA of 45.95, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 92.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWT.

California Water Service Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWK	73 Outperform	$25.85B	23.22	10.46%	2.51%	12.29%	13.13%
AWR	70 Outperform	$2.93B	22.39	13.73%	2.64%	10.28%	13.56%
YORW	69 Neutral	$487.31M	24.25	8.58%	2.68%	3.63%	-5.82%
WTRG	66 Neutral	$11.24B	16.47	10.29%	3.48%	21.35%	20.96%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	65 Neutral	$2.72B	19.96	8.19%	2.88%	-2.60%	-33.78%
MSEX	59 Neutral	$990.43M	22.67	9.27%	2.67%	6.24%	3.35%

California Water Service Corporate Events

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.