Global Water Resources (GWRS) AI Stock Analysis

• Market Cap: $244.38M
• Dividend Yield: 3.56%
• Average Volume (3M): 86.61K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.58
• Revenue Growth: 7.06%
• EPS Growth: -38.94%
• Country: US
• Employees: 122
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.07
• Shares Outstanding: 28,750,265
• 10 Day Avg. Volume: 70,657
• 30 Day Avg. Volume: 86,605
• PEG Ratio: -1.76
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 5.28
• P/FCF Ratio: -26.41
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 7.21
• Enterprise Value/Gross Profit: 10.84
• Enterprise Value/Ebitda: 15.33
• 1Y Price Target: $13.25
• Price Target Upside: 53.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $9.00 ▲(4.41% Upside)

Global Water Resources faces significant challenges in operational efficiency and cash flow management, reflected in its financial performance. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation. However, strategic initiatives and recent corporate events provide positive long-term prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service expansion, supporting long-term financial stability.

Strategic Acquisitions

The Tucson acquisition enhances market presence and revenue base, providing a foundation for future growth and competitive advantage.

New Board Appointment

Christa Steele's appointment brings expertise in regulatory navigation and growth strategy, potentially strengthening governance and strategic direction.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure profit margins and limit financial flexibility, challenging long-term operational efficiency.

Negative Free Cash Flow

Negative free cash flow suggests high capital expenditures or cash outflows, potentially impacting liquidity and investment capacity.

Rate Case Challenges

Challenges in rate case approvals could limit revenue growth and affect financial performance, impacting long-term profitability.

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 74,048 people in approximately 27,630 homes. The company was founded in 2003 and is based in Phoenix, Arizona.

How the Company Makes Money

Global Water Resources generates revenue through multiple key streams, primarily by charging municipalities and residential customers for water services, including both potable water supply and reclaimed water services. The company earns money from monthly service fees, which are structured based on consumption. Additionally, GWRS benefits from partnerships with local governments and agencies, often entering long-term contracts to manage water resources and infrastructure projects. The company may also receive revenue through environmental credits for sustainable practices and technologies, as well as potential grants or funding from government initiatives aimed at enhancing water infrastructure and conservation efforts.

Global Water Resources Financial Statement Overview

Summary

Global Water Resources demonstrates solid revenue growth and stable profitability, with improvements in leverage and equity positions. However, the company faces challenges in operational efficiency and cash flow management, particularly with negative free cash flow.

Income Statement

Global Water Resources has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.21%. The company maintains strong gross profit margins, though there has been a slight decline from previous years. Net profit margins have been stable, indicating effective cost management. However, the EBIT and EBITDA margins have slightly decreased in the TTM period, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved in the TTM period, indicating better leverage management. However, the return on equity has decreased, which may suggest challenges in generating returns from equity investments. The equity ratio has improved, reflecting a stronger equity position relative to total assets.

Cash Flow

Operating cash flow remains robust, but the free cash flow is negative in the TTM period, which could indicate high capital expenditures or other cash outflows. The operating cash flow to net income ratio is healthy, but the negative free cash flow to net income ratio highlights potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.47M	52.69M	53.03M	44.73M	41.91M	38.63M
Gross Profit	36.91M	38.97M	40.36M	33.84M	31.61M	29.09M
EBITDA	26.09M	27.06M	27.50M	20.55M	19.45M	16.28M
Net Income	4.36M	5.79M	7.98M	5.51M	3.61M	1.10M
Balance Sheet
Total Assets	480.65M	405.14M	361.10M	323.09M	294.07M	283.45M
Cash, Cash Equivalents and Short-Term Investments	15.26M	9.05M	3.09M	6.56M	12.64M	18.03M
Total Debt	131.94M	124.77M	109.46M	110.90M	112.91M	114.69M
Total Liabilities	391.03M	357.53M	312.48M	278.69M	264.05M	251.26M
Stockholders Equity	89.63M	47.60M	48.62M	44.40M	30.03M	32.19M
Cash Flow
Free Cash Flow	-39.32M	-10.54M	3.08M	-10.65M	2.14M	5.43M
Operating Cash Flow	23.46M	21.79M	25.39M	23.34M	20.39M	14.57M
Investing Cash Flow	-71.03M	-32.48M	-28.60M	-34.19M	-20.32M	-9.44M
Financing Cash Flow	43.07M	17.09M	406.00K	4.97M	-7.93M	7.09M

Global Water Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWRS, the sentiment is Positive. The current price of 8.62 is above the 20-day moving average (MA) of 8.52, below the 50-day MA of 8.81, and below the 200-day MA of 9.73, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 54.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GWRS.

Global Water Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	72 Outperform	$266.20M	20.22	9.62%	―	-9.25%	12.89%
ARTNA	70 Outperform	$333.55M	14.67	9.25%	3.87%	5.80%	12.33%
YORW	69 Neutral	$463.50M	23.07	8.58%	2.68%	3.63%	-5.82%
CWCO	68 Neutral	$569.86M	34.01	8.10%	1.40%	-17.62%	-54.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MSEX	59 Neutral	$948.07M	21.70	9.27%	2.67%	6.24%	3.35%
GWRS	58 Neutral	$244.38M	51.99	6.30%	3.56%	7.06%	-38.94%

Global Water Resources Corporate Events

Global Water Resources Secures $15 Million Loan

On December 10, 2025, Global Water Resources, Inc. entered into a credit agreement with CoBANK, securing a $15 million term loan with a fixed interest rate of 5.49% per annum, maturing on December 10, 2035. The loan is guaranteed by the company’s subsidiaries and secured by a pledge of equity interests, with covenants limiting certain financial and operational activities, impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (GWRS) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.

Global Water Resources Appoints New Board Member

On November 11, 2025, Global Water Resources appointed Christa Steele to its Board of Directors, effective January 1, 2026, succeeding Debra G. Coy. Steele, who brings over two decades of leadership experience, will serve on the Audit Committee and as Chair of the Corporate Governance, Nominating, Environmental, and Health and Safety Committee. Her appointment aligns with the company’s goals of leading in water resource management and expanding in Arizona’s major metro growth corridors. Steele’s expertise in regulatory navigation and growth strategy is expected to enhance the company’s strategic direction as it faces challenges of water scarcity and population growth.

The most recent analyst rating on (GWRS) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.

Global Water Faces Rate Case Challenges in Arizona

On March 5, 2025, Global Water Resources‘ subsidiaries filed rate case applications with the Arizona Corporation Commission (ACC) seeking increased rates, which could lead to a $6.5 million revenue boost. However, on October 1, 2025, the ACC Staff and the Residential Utility Consumer Office (RUCO) presented differing recommendations, with the ACC Staff suggesting a revenue decrease and RUCO a smaller increase. The company is engaging in settlement discussions and preparing for a hearing in December 2025, with potential impacts on its financial condition depending on the ACC’s final decision expected in the first half of 2026.

The most recent analyst rating on (GWRS) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.