Education
About Us
Working with TipRanks
Follow Us
Global Water Resources (GWRS)
:GWRS
Top Page
Global Water Resources
(NASDAQ:GWRS)
Rating:65Neutral
Price Target:
$11.50
▲(10.90%Upside)
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$284.67M
Dividend Yield2.93%
Average Volume (3M)37.97K
Price to Earnings (P/E)44.3
Beta (1Y)0.75
Revenue Growth3.94%
EPS Growth-8.78%
CountryUS
Employees122
SectorUtilities
Sector Strength84
IndustryRegulated Water
Share Statistics
EPS (TTM)0.03
Shares Outstanding27,450,977
10 Day Avg. Volume41,833
30 Day Avg. Volume37,970
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)6.93
Price to Sales (P/S)0.00
P/FCF Ratio-28.90
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit10.46
Enterprise Value/Ebitda3.85
Forecast
1Y Price Target
$18.00Price Target Upside73.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Global Water Resources Business Overview & Revenue Model
Company DescriptionGlobal Water Resources, Inc. (GWRS) is a water resource management company based in the United States, primarily focused on providing water, wastewater, and recycled water services. The company operates within the utilities sector and specializes in the acquisition and management of water utilities, particularly in growth-oriented communities. GWRS is dedicated to promoting sustainable water use practices and ensuring reliable water services to its customers.
How the Company Makes MoneyGlobal Water Resources, Inc. makes money through the provision of essential water utility services, which include the supply of clean drinking water, wastewater treatment, and recycled water services. The company's revenue is primarily generated from the fees and charges billed to residential, commercial, and industrial customers based on their water consumption and service usage. Additionally, GWRS benefits from rate adjustments approved by regulatory bodies, which can lead to increased revenues. The company's strategic acquisitions of water utility systems in expanding regions also contribute to its growth and revenue streams, allowing it to capitalize on new customer bases and infrastructure enhancements. Significant partnerships with local governments and adherence to regulatory standards are crucial factors in maintaining and expanding its service operations, thus boosting its earnings.
Global Water Resources Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 3.18%|
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 Financial Statement Overview
Summary
Global Water Resources demonstrates stable revenue growth and strong profitability with high gross profit margins. However, potential issues include a slight decrease in EBIT margin and challenges with generating positive free cash flow due to high capital expenditures.Income Statement
Global Water Resources exhibits stable revenue growth and strong profitability metrics. The gross profit margin is consistently high, indicating efficient cost management. Net profit and EBIT margins are solid, but there has been a slight decrease in EBIT margin in TTM, which warrants attention.75
Positive
Balance Sheet
The company's balance sheet shows improvement in equity and a reduction in debt, leading to a healthier debt-to-equity ratio. However, the equity ratio reveals a moderate reliance on liabilities, which could pose risks if not managed carefully. The return on equity has shown fluctuations, reflecting varying profitability.68
Positive
Cash Flow
Cash flow from operations is strong, but the company faces challenges in generating positive free cash flow due to high capital expenditures. The ratio of operating cash flow to net income is favorable, indicating good operational efficiency, but the negative free cash flow suggests potential liquidity issues.60
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 |
| 39.41M | 38.97M | 40.36M | 33.84M | 31.61M | 29.09M | EBIT |
| 9.35M | 9.36M | 12.29M | 10.48M | 9.96M | 7.33M | EBITDA |
| 27.20M | 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
Neutral
10.37
Price Trends
10.24
Positive
10.71
Negative
11.50
Negative
Market Momentum
0.06
Negative
50.96
Neutral
60.54
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 10.37 is above the 20-day moving average (MA) of 10.31, above the 50-day MA of 10.24, and below the 200-day MA of 11.50, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $256.41M | 17.25 | 11.12% | ― | 58.77% | 116.91% | |
75 Outperform | $355.98M | 16.16 | 9.04% | 3.66% | 8.31% | 21.97% | |
69 Neutral | $449.49M | 16.98 | 7.83% | 1.56% | -31.57% | -18.12% | |
65 Neutral | $284.67M | 44.32 | 9.11% | 2.93% | 3.94% | -8.78% | |
64 Neutral | $8.62B | 10.39 | 4.24% | 4.63% | 4.07% | -13.04% | |
58 Neutral | $464.84M | 23.61 | 8.63% | 2.72% | 3.45% | -19.90% | |
47 Neutral | $231.71M | ― | -84.03% | ― | 283.67% | -11.36% |
* Utilities Sector Average
Performance Comparison
GWRS
Global Water Resources
10.37
-1.40
-11.89%
ARTNA
Artesian Resources
33.61
0.68
2.06%
CDZI
Cadiz
2.79
-0.25
-8.22%
CWCO
Consolidated Water Co
28.18
3.51
14.23%
PCYO
Pure Cycle
10.14
0.85
9.15%
YORW
The York Water Company
32.28
-2.92
-8.30%
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.
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.