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Global Water Resources Inc (GWRS)
NASDAQ:GWRS
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Global Water Resources
(NASDAQ:GWRS)
61Neutral
Global Water Resources (GWRS) vs. S&P 500 (SPY)
Market Cap
$286.26M
Dividend Yield2.88%
Average Volume (3M)63.45K
Price to Earnings (P/E)43.8
Beta (1Y)0.84
Revenue Growth-0.63%
EPS Growth-28.00%
CountryUS
Employees122
SectorUtilities
Sector Strength94
IndustryRegulated Water
Share Statistics
EPS (TTM)0.24
Shares Outstanding27,446,016
10 Day Avg. Volume57,821
30 Day Avg. Volume63,451
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.38
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.48
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside72.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Global Water Resources Business Overview & Revenue Model
Company DescriptionGlobal Water Resources (GWRS) is a leading water resource management company specializing in providing water, wastewater, and recycled water services. Operating primarily in the United States, the company focuses on the efficient and sustainable management of water resources through innovative solutions and technologies. GWRS is committed to ensuring reliable and safe water services for residential, commercial, and industrial customers while promoting environmental stewardship.
How the Company Makes MoneyGlobal Water Resources generates revenue primarily through the provision of water, wastewater, and recycled water services to its customers. The company charges fees for the delivery and management of these services, which are based on usage and are subject to regulatory approval. GWRS also derives income from connection fees for new developments and infrastructure expansion. Additionally, the company may benefit from partnerships with municipal governments and other entities, which can involve long-term service agreements or joint investment in water infrastructure projects. Key factors contributing to its earnings include the efficient management of water resources, customer growth, and regulatory rate adjustments.
Global Water Resources Financial Statement Overview
Summary
Global Water Resources exhibits a stable financial profile typical of regulated utilities, with a strong gross profit margin. However, challenges such as a decline in net profit margin and modest revenue growth, along with negative free cash flow due to high capital expenditures, impact the financial performance score.Income Statement
The company shows a stable revenue base with a consistent gross profit margin of 100% due to its industry nature. However, the net profit margin has declined from 15.1% in 2023 to 11.0% in 2024, indicating increased costs or decreased pricing power. Revenue growth has been modest with a decline of approximately 0.6% in 2024 from 2023 figures, reflecting potential challenges in expanding its top line.65
Positive
Balance Sheet
The balance sheet reveals a significant reduction in total debt from $109.5 million in 2023 to $5.38 million in 2024, improving the debt-to-equity ratio substantially. Stockholders' equity remains relatively stable, providing a strong equity ratio of 11.8%. ROE has slightly decreased due to lower net income, but the company's financial position remains stable.72
Positive
Cash Flow
The operating cash flow remains strong at $21.8 million in 2024, but free cash flow has turned negative due to high capital expenditures. The free cash flow to net income ratio is negative, indicating the company is investing heavily, which may affect short-term liquidity but could drive future growth.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 52.69M | 53.03M | 44.73M | 41.91M | 38.63M | Gross Profit |
| 52.69M | 40.36M | 33.84M | 31.61M | 29.09M | EBIT |
| 9.36M | 12.29M | 10.48M | 9.96M | 7.33M | EBITDA |
| 27.06M | 27.50M | 20.55M | 19.45M | 16.28M | Net Income Common Stockholders |
| 5.79M | 7.98M | 5.51M | 3.61M | 1.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.05M | 3.09M | 6.56M | 12.64M | 18.03M | Total Assets |
| 405.14M | 361.10M | 323.09M | 294.07M | 283.45M | Total Debt |
| 5.38M | 109.46M | 110.90M | 112.91M | 114.69M | Net Debt |
| -3.67M | 106.37M | 104.34M | 100.27M | 96.66M | Total Liabilities |
| 357.53M | 312.48M | 278.69M | 264.05M | 251.26M | Stockholders Equity |
| 47.60M | 48.62M | 44.39M | 30.03M | 32.19M |
| Cash Flow | Free Cash Flow | |||
| -10.54M | 3.08M | -10.65M | 2.14M | 5.43M | Operating Cash Flow |
| 21.79M | 25.39M | 23.34M | 20.39M | 14.57M | Investing Cash Flow |
| -32.48M | -28.60M | -34.19M | -20.32M | -9.44M | Financing Cash Flow |
| 17.09M | 406.00K | 4.97M | -7.93M | 7.09M |
Global Water Resources Technical Analysis
Negative
10.43
Price Trends
10.73
Negative
11.22
Negative
11.83
Negative
Market Momentum
-0.07
Negative
53.13
Neutral
80.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWRS, the sentiment is Negative. The current price of 10.43 is above the 20-day moving average (MA) of 10.18, below the 50-day MA of 10.73, and below the 200-day MA of 11.83, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWRS.
Global Water Resources Risk Analysis
Global Water Resources disclosed 48 risk factors in its most recent earnings report. Global Water Resources 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
Global Water Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $237.39M | 17.03 | 11.12% | ― | 58.77% | 116.91% | |
76 Outperform | $364.60M | 17.93 | 8.69% | 3.42% | 9.20% | 18.90% | |
70 Outperform | $370.54M | 23.07 | 9.01% | 1.73% | -25.66% | -5.11% | |
63 Neutral | $8.52B | 12.04 | 6.70% | 4.34% | 3.08% | -11.00% | |
61 Neutral | $286.26M | 43.79 | 12.03% | 2.88% | -0.63% | -28.00% | |
60 Neutral | $506.51M | 24.85 | 8.99% | 2.43% | 5.53% | -14.72% | |
43 Neutral | $232.50M | ― | -84.24% | ― | 382.57% | 5.98% |
* Utilities Sector Average
Performance Comparison
GWRS
Global Water Resources
10.43
-2.03
-16.29%
ARTNA
Artesian Resources
35.52
0.04
0.11%
CDZI
Cadiz
2.84
0.45
18.83%
CWCO
Consolidated Water Co
23.24
-2.35
-9.18%
PCYO
Pure Cycle Corp
9.90
0.12
1.23%
YORW
The York Water Company
35.20
-0.65
-1.81%
Global Water Resources Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2024)
| % Change Since: -8.02%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of strong growth in service connections, compliance, and multifamily housing permits, alongside significant industrial investments and successful regulatory developments. However, these positive aspects were offset by a decline in total revenue due to non-repeating ICFA revenue, increased operating expenses, and a drop in net income.Q4-2024 Updates
Positive Updates
Increase in Active Service Connections
Total active service connections increased 4.4% to 64,520 as of December 30, 2024, from the twelve months prior.
Strong Compliance Record
For 2024, there were zero significant compliance events, continuing nearly eight years without such events.
Increase in Building Permits
In 2024, the market realized 27,156 building permits, representing a 20.3% increase from 2023. The city of Maricopa saw an 11.5% increase in building permits.
Growth in Multifamily Housing
In 2024, the city of Maricopa permitted 1,200 multifamily housing units, an 88.7% increase from 2023.
Significant Industrial Investment
In 2024, $50 billion was invested into Arizona, following $40.7 billion in 2023, with significant further announcements in 2024 and 2025.
Revenue Growth from Regulated Services
Regulated revenue for 2024 was $52.7 million, up $2.5 million or 4.9% compared to 2023.
Approval for Acquisition of City of Tucson Assets
The Arizona Corporation Commission approved the proposed acquisition, increasing customers in the region from 5,000 to 7,000 connections.
Settlement in Global Water Farmers Rate Case
A settlement authorizes an approximate $1.1 million revenue increase, over 85% of the request, to be phased in 2025 and 2026.
Negative Updates
Decrease in Total Revenue
Total revenue for 2024 was $52.7 million, down 0.6% compared to 2023, primarily due to non-repeating ICFA revenue.
Increase in Operating Expenses
Operating expenses for 2024 were $43.3 million, an increase of approximately $2.6 million or 6.3% compared to 2023.
Decline in Net Income
Net income for 2024 was $5.8 million or $0.24 per diluted share, compared to $8 million or $0.33 per diluted share in 2023.
Company Guidance
In the recent Global Water Resources, Inc. 2024 year-end conference call, the company provided several key metrics and guidance for future growth. The company reported a 4.4% increase in total active service connections, reaching 64,520 by the end of 2024. They invested $32.3 million into infrastructure improvements, maintaining a strong compliance record with zero significant compliance events for nearly eight years. The single-family dwelling market saw a 20.3% increase in building permits in the Phoenix area and an 11.5% increase in Maricopa. Multifamily housing units in Maricopa surged by 88.7% with 1,200 units permitted. The company also highlighted significant industrial growth, with Arizona seeing $50 billion in investments in 2024, including a record $168 billion investment from TSMC. Global Water is optimistic about future growth, driven by organic connections, new utilities, acquisitions, and rate cases, with active connections rising 40.8%, revenue increasing 48.4%, and EPS growing 119% from 2019 to 2024. They have proposed over $7.5 million in rate increases and are pursuing further regulatory initiatives to enhance financial performance.Global Water Resources Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Global Water Resources Files Rate Increase Applications
Neutral
Mar 11, 2025
On March 5, 2025, Global Water Resources’ subsidiaries, GW-Santa Cruz and GW-Palo Verde, filed rate case applications with the Arizona Corporation Commission (ACC) for water and wastewater rates. These subsidiaries are the company’s largest utilities, representing a significant portion of its service connections. The proposed rate increases, if approved, would result in a net annual revenue increase of approximately $6.5 million and an 11% increase in the median monthly bill for customers. The company plans to phase in the new rates over two years, starting in May 2026. The proposal also includes a formula rate plan for annual adjustments based on specific cost inputs. However, there is no assurance that the ACC will approve the increases or the formula rate plan, and the ACC could potentially decrease future rates.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.