Global Water Resources (GWRS)
NASDAQ:GWRS
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Global Water Resources
(NASDAQ:GWRS)
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Rating:50Neutral
Price Target:
$7.00
▼(-9.33% Downside)
Action:Reiterated
Date:05/19/26
Overall score is constrained primarily by weak cash generation (consistently negative free cash flow) and deteriorated margins, with additional pressure from bearish technicals (below major moving averages and negative MACD). These are partly offset by improving balance-sheet leverage, a high dividend yield, and a constructive earnings-call backdrop around rate recovery and cost-control initiatives.
Positive Factors
Regulated, recurring revenue model
As a certificated regulated utility, GWRS earns recurring fees under regulator-approved rate structures. This creates predictable long-term cash flows, defensive demand from essential services, and a stable revenue base tied to service connections and consumption rather than volatile markets.
Negative Factors
Persistent negative free cash flow
Sustained negative FCF driven by heavy capital investment strains liquidity and raises reliance on external funding or credit lines. Over a multi-month horizon this limits the company's ability to self-fund growth, increases refinancing needs, and heightens sensitivity to rate recovery timing.
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Positive Factors
Negative Factors
Regulated, recurring revenue model
As a certificated regulated utility, GWRS earns recurring fees under regulator-approved rate structures. This creates predictable long-term cash flows, defensive demand from essential services, and a stable revenue base tied to service connections and consumption rather than volatile markets.
Read all positive factors
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$201.06M
Dividend Yield3.56%
Average Volume (3M)77.77K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth5.69%
EPS Growth-68.06%
CountryUS
Employees122
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.07
Shares Outstanding28,763,634
10 Day Avg. Volume114,224
30 Day Avg. Volume77,772
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)2.64
Price to Sales (P/S)4.10
P/FCF Ratio-4.84
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue6.10
Enterprise Value/Gross Profit10.53
Enterprise Value/Ebitda14.31
Forecast
1Y Price Target
$12.50Price Target Upside61.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.14
Revenue Forecast (FY)$58.31M
Global Water Resources Business Overview & Revenue Model
Company Description
Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona. As of December 31, 2020, it served approximately 7...
How the Company Makes Money
GWRS primarily makes money by charging customers for regulated utility services—supplying potable water, providing wastewater services, and delivering recycled/reclaimed water—within its certificated service areas. Revenue is largely generated thr...
Global Water Resources Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call balanced clear near-term pressures against constructive forward-looking actions. Q1 showed solid top-line growth (revenue +6.7%) and customer connection gains (total connections +5.7%; organic growth in Phoenix MSA), and management secured a regulatory settlement that paves a path to meaningful future rate recovery (including ~ $2.3M for Santa Cruz). Offsetting these positives were significant near-term cost pressures (operating expenses +15.1%, higher depreciation and interest) that produced a GAAP net loss versus prior-year net income, and a delayed Palo Verde rate recovery that defers earnings relief. Adjusted EBITDA stability and planned future rate filings are positive signals, but until rate increases are implemented the company faces continued EPS/headwind from elevated depreciation and interest costs. Overall, the highlights and lowlights appear balanced.Positive Updates
Service Connection Growth
Total active service connections increased 5.7% to 68.9 thousand as of 03/31/2026 year-over-year. Excluding the acquisition of 7 Tucson Water Systems, the company achieved an annualized 1.9% total active service connection growth rate and reported a 2.6% year-over-year organic increase in active connections in the Phoenix MSA.
Negative Updates
Operating Expense Increase
Operating expenses rose approximately $1.7 million or 15.1% to $12.9 million in Q1 2026 from $11.2 million in Q1 2025. Key drivers included a $900 thousand increase in depreciation, amortization and accretion (from 2025 capital put in service), ~$500 thousand higher operating & maintenance costs (higher medical costs, increased power for newly operational plant, and wastewater disposal related to start-up of two wastewater reclamation facilities), and ~$300 thousand higher G&A (primarily medical).
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Q1-2026 Updates
Positive
Negative
Service Connection Growth
Total active service connections increased 5.7% to 68.9 thousand as of 03/31/2026 year-over-year. Excluding the acquisition of 7 Tucson Water Systems, the company achieved an annualized 1.9% total active service connection growth rate and reported a 2.6% year-over-year organic increase in active connections in the Phoenix MSA.
Read all positive updates
Company Guidance
Management said 2026 will prioritize expense control and a slower pace of capital spending while pursuing rate recoveries to drive future earnings growth: Q1 revenue was $13.3M (+$0.8M, +6.7% YoY) with operating expenses of $12.9M (+$1.7M, +15.1%), depreciation/amortization/accretion up ~$0.9M, O&M up ~$0.5M, G&A up ~$0.3M, other expense $0.9M vs $0.5M, net loss $0.4M (‑$0.01/sh) vs prior‑year net income $0.6M (+$0.02/sh), and EBITDA held at $5.6M; active service connections were 68.9k (+5.7% YoY; 1.9% annualized excl. seven Tucson systems; 2.6% organic YoY growth), $6.3M invested YTD, Phoenix SFD permits were ~21.8k in 2025 vs 5.2k YTD 2026 (‑18.8%) and Maricopa 157 permits (‑16.5%); the unanimous regulatory settlement anticipates ~ $2.3M of Santa Cruz water revenue and a ~$0.4M Palo Verde wastewater reduction effective Nov. 1, 2026 (testimony filed end‑May, hearing Aug. 2026), with a Palo Verde refiling planned in 2027 for 2028 implementation.Global Water Resources Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.59M | 55.76M | 52.69M | 53.03M | 44.73M | 41.91M |
| Gross Profit | 32.76M | 25.01M | 38.97M | 40.36M | 33.84M | 31.61M |
| EBITDA | 24.10M | 22.52M | 27.06M | 27.50M | 20.55M | 19.45M |
| Net Income | 2.00M | 2.96M | 5.79M | 7.98M | 5.51M | 3.61M |
Balance Sheet | ||||||
| Total Assets | 485.09M | 482.91M | 405.14M | 361.10M | 323.09M | 294.07M |
| Cash, Cash Equivalents and Short-Term Investments | 1.80M | 4.08M | 9.05M | 3.09M | 6.56M | 12.64M |
| Total Debt | 139.07M | 138.29M | 124.77M | 109.46M | 110.90M | 112.91M |
| Total Liabilities | 400.86M | 396.30M | 357.53M | 312.48M | 278.69M | 264.05M |
| Stockholders Equity | 84.23M | 86.62M | 47.60M | 48.62M | 44.40M | 30.03M |
Cash Flow | ||||||
| Free Cash Flow | -41.22M | -47.15M | -10.54M | 3.08M | -10.65M | 2.14M |
| Operating Cash Flow | 17.17M | 20.17M | 21.79M | 25.39M | 23.34M | 20.39M |
| Investing Cash Flow | -66.48M | -75.42M | -32.48M | -28.60M | -34.19M | -20.32M |
| Financing Cash Flow | 21.01M | 50.93M | 17.09M | 406.00K | 4.97M | -7.93M |
Global Water Resources Technical Analysis
Neutral
7.72
Price Trends
7.31
Negative
7.93
Negative
8.66
Negative
Market Momentum
-0.13
Negative
53.15
Neutral
77.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWRS, the sentiment is Neutral. The current price of 7.72 is above the 20-day moving average (MA) of 7.01, above the 50-day MA of 7.31, and below the 200-day MA of 8.66, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $243.45M | 57.64 | 9.75% | ― | 2.45% | -1.04% | |
68 Neutral | $464.65M | 34.95 | 7.85% | 1.40% | 0.26% | -35.19% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $334.83M | 13.85 | 9.36% | 3.87% | 5.06% | 8.72% | |
63 Neutral | $963.81M | 22.58 | 9.07% | 2.67% | 1.76% | -0.20% | |
58 Neutral | $483.04M | 22.79 | 8.89% | 2.68% | 4.38% | 7.70% | |
50 Neutral | $201.06M | -149.10 | 2.37% | 3.56% | 5.69% | -68.06% |
* Utilities Sector Average
GWRS
Global Water Resources
7.22
-2.79
-27.84%
ARTNA
Artesian Resources
32.44
-0.28
-0.84%
CWCO
Consolidated Water Co
29.41
3.07
11.65%
MSEX
Middlesex Water Company
52.11
-3.58
-6.42%
PCYO
Pure Cycle
10.04
-0.66
-6.17%
YORW
The York Water Company
29.87
-1.85
-5.84%
Global Water Resources Corporate Events
Executive/Board ChangesShareholder Meetings
Global Water Resources Shareholders Back Board, Pay, Auditor
Positive
May 18, 2026
At its 2026 Annual Meeting of Stockholders held on May 14, 2026, Global Water Resources shareholders elected seven directors to serve until the 2027 annual meeting, maintaining continuity on the company’s board and governance structure. Stoc...
Business Operations and StrategyPrivate Placements and Financing
Global Water Resources Extends Revolving Credit Facility Maturity
Positive
May 4, 2026
On April 30, 2026, Global Water Resources, Inc. entered into a seventh amendment to its revolving credit agreement with The Northern Trust Company, which currently allows the company to borrow up to $20 million. The amendment extends the facility&...
Business Operations and StrategyRegulatory Filings and Compliance
Global Water Reaches Arizona Settlement on Key Rate Cases
Positive
Apr 30, 2026
On April 28 and 29, 2026, Global Water Resources and Arizona regulators reached and disclosed a unanimous settlement covering rate cases for its GW-Santa Cruz and GW-Palo Verde utilities, following original filings made on March 5, 2025. The deal ...
Business Operations and StrategyRegulatory Filings and Compliance
Global Water Resources Reaches Settlement in Key Rate Case
Neutral
Apr 15, 2026
Global Water Resources, Inc. reported that on March 5, 2025 its regulated subsidiaries, Global Water – Santa Cruz Water Company, Inc. and Global Water – Palo Verde Utilities Company, Inc., filed rate case applications with the Arizona ...
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.