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Global Water Resources Inc (GWRS)
NASDAQ:GWRS
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Global Water Resources
(NASDAQ:GWRS)
Rating:62Neutral
Price Target:
$11.00
▲( 7.84% Upside)
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$286.04M
Dividend Yield2.9%
Average Volume (3M)46.53K
Price to Earnings (P/E)44.5
Beta (1Y)0.81
Revenue Growth3.94%
EPS Growth-8.78%
CountryUS
Employees122
SectorUtilities
Sector Strength83
IndustryRegulated Water
Share Statistics
EPS (TTM)0.03
Shares Outstanding27,450,977
10 Day Avg. Volume33,448
30 Day Avg. Volume46,533
Financial Highlights & Ratios
PEG Ratio-10.71
Price to Book (P/B)3.29
Price to Sales (P/S)0.00
P/FCF Ratio-13.90
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit9.38
Enterprise Value/Ebitda2.78
Forecast
1Y Price Target
$18.00Price Target Upside76.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 maintains a stable financial profile with a strong gross profit margin typical in the regulated water industry. The substantial reduction in debt enhances financial stability, but the decline in net profit margin and negative free cash flow due to high capital expenditures could pose liquidity risks. Modest revenue growth and the need to improve net income are areas for attention.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 53.54M | 52.69M | 53.03M | 44.73M | 41.91M | 38.63M | Gross Profit |
| 27.64M | 38.97M | 40.36M | 33.84M | 31.61M | 29.09M | EBIT |
| 9.35M | 9.36M | 12.29M | 10.48M | 9.96M | 7.33M | EBITDA |
| 22.63M | 27.06M | 27.50M | 20.55M | 19.45M | 16.28M | Net Income Common Stockholders |
| 5.69M | 5.79M | 7.98M | 5.51M | 3.61M | 1.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.47M | 9.05M | 3.09M | 6.56M | 12.64M | 18.03M | Total Assets |
| 443.92M | 405.14M | 361.10M | 323.09M | 294.07M | 283.45M | Total Debt |
| 4.83M | 124.77M | 109.46M | 110.90M | 112.91M | 114.69M | Net Debt |
| -26.64M | 115.72M | 106.37M | 104.34M | 100.27M | 96.66M | Total Liabilities |
| 366.70M | 357.53M | 312.48M | 278.69M | 264.05M | 251.26M | Stockholders Equity |
| 77.22M | 47.60M | 48.62M | 44.39M | 30.03M | 32.19M |
| Cash Flow | Free Cash Flow | ||||
| -20.59M | -10.54M | 3.08M | -10.65M | 2.14M | 5.43M | Operating Cash Flow |
| 21.19M | 21.79M | 25.39M | 23.34M | 20.39M | 14.57M | Investing Cash Flow |
| -41.93M | -32.48M | -28.60M | -34.19M | -20.32M | -9.44M | Financing Cash Flow |
| 31.04M | 17.09M | 406.00K | 4.97M | -7.93M | 7.09M |
Global Water Resources Technical Analysis
Negative
10.20
Price Trends
10.37
Negative
10.90
Negative
11.61
Negative
Market Momentum
-0.02
Negative
46.35
Neutral
68.20
Neutral
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 10.2 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 10.37, and below the 200-day MA of 11.61, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $265.56M | 18.35 | 11.12% | ― | 58.77% | 116.91% | |
74 Outperform | $354.93M | 16.59 | 9.04% | 3.46% | 8.31% | 21.97% | |
69 Neutral | $421.47M | 15.95 | 7.83% | 1.60% | -31.57% | -18.12% | |
63 Neutral | $8.63B | 10.24 | 4.67% | 4.35% | 3.78% | -12.74% | |
62 Neutral | $286.04M | 44.53 | 9.11% | 2.90% | 3.94% | -8.78% | |
58 Neutral | $481.26M | 24.44 | 8.63% | 2.57% | 3.45% | -19.90% | |
50 Neutral | $234.99M | ― | -84.03% | ― | 283.67% | -11.36% |
* Utilities Sector Average
Performance Comparison
GWRS
Global Water Resources
10.20
-1.81
-15.07%
ARTNA
Artesian Resources
34.25
-3.05
-8.18%
CDZI
Cadiz
2.65
-0.46
-14.79%
CWCO
Consolidated Water Co
26.65
-1.37
-4.89%
PCYO
Pure Cycle
10.79
1.68
18.44%
YORW
The York Water Company
33.10
-2.48
-6.97%
Global Water Resources Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 1.49%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook with several positive developments, including increased service connections, infrastructure investments, and revenue growth. However, challenges such as decreased building permits, increased operating expenses, and a slight decline in net income were also noted. Despite these challenges, strategic initiatives like new rate approvals and a successful capital raise may position the company for future growth.Q1-2025 Updates
Positive Updates
Increased Service Connections
Total active service connections increased by 4.3% to 65,163 as of March 31, 2025, maintaining an annualized growth rate of 4%.
Infrastructure Investment
Invested $15.2 million into infrastructure improvements and existing utilities to provide safe and reliable service.
Revenue Growth
Total revenue for the first quarter of 2025 was $12.5 million, up by $0.8 million or 7.3% compared to Q1 2024.
Successful Equity Capital Raise
Raised $32 million in equity capital and extended the line of credit to May 2027, increasing it by $5 million to $20 million.
Approval of New Rates
The Arizona Corporation Commission approved new rates for the farmers water utility, effective May 1.
Negative Updates
Decline in Building Permits
For Q1 2025, the Phoenix metropolitan area saw a 15% decrease in building permits, and the City of Maricopa saw a 41.5% decrease compared to Q1 2024.
Increased Operating Expenses
Operating expenses for Q1 2025 were $11.2 million, an increase of $0.9 million or 8.3% compared to Q1 2024, due to increased depreciation, O&M costs, and general and administrative expenses.
Decrease in Net Income
Net income for Q1 2025 was $0.6 million or $0.02 per diluted share, compared to $0.7 million or $0.03 per diluted share in Q1 2024.
Company Guidance
During the Global Water Resources, Inc. first quarter 2025 conference call, the company provided several key guidance metrics. Total active service connections rose by 4.3% to 65,163 as of March 31, 2025, maintaining an annualized growth rate of 4%. The company invested $15.2 million into infrastructure improvements and existing utilities, focusing on projects in the Santa Cruz Water Company and Palo Verde Utilities Company. Despite a 15% decrease in building permits in the Phoenix metropolitan area and a 41.5% decrease in the City of Maricopa compared to Q1 2024, Global Water remains optimistic due to strong population and job growth. Revenue for Q1 2025 was $12.5 million, a 7.3% increase from Q1 2024, driven by a 4.3% rise in active service connections and increased consumption. Operating expenses increased by 8.3% to $11.2 million, with notable increases in depreciation, O&M costs, and general administrative expenses. Adjusted EBITDA rose by 4.4% to $5.6 million. The company also highlighted a successful $32 million equity capital raise and an increased line of credit to $20 million. Furthermore, they are targeting the closure of the Tucson acquisition by summer and have proposed a $6.5 million annual rate increase under review with the Arizona Corporation Commission.Global Water Resources Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Global Water Resources Holds 2025 Annual Stockholder Meeting
Neutral
May 21, 2025
On May 15, 2025, Global Water Resources, Inc. held its 2025 Annual Meeting of Stockholders, where stockholders elected seven directors for terms expiring at the 2026 Annual Meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, and the compensation of the company’s named executive officers was approved on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.
The most recent analyst rating on (GWRS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.
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.