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Global Water Resources Inc (GWRS)
NASDAQ:GWRS
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Global Water Resources
(NASDAQ:GWRS)
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Rating:63Neutral
Price Target:
$10.50
▲(3.75% Upside)
Global Water Resources receives a moderate score due to strong operational efficiency and positive revenue growth, offset by challenges in free cash flow generation and increased operating expenses. The technical indicators suggest potential short-term weakness, and the high P/E ratio indicates overvaluation. However, the dividend yield offers some appeal to income-focused investors.
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.03M
Dividend Yield3%
Average Volume (3M)50.22K
Price to Earnings (P/E)45.7
Beta (1Y)0.70
Revenue Growth4.33%
EPS Growth-13.38%
CountryUS
Employees122
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.06
Shares Outstanding27,473,276
10 Day Avg. Volume68,745
30 Day Avg. Volume50,217
Financial Highlights & Ratios
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 Cap1.41
Enterprise Value/Revenue7.25
Enterprise Value/Gross Profit10.81
Enterprise Value/Ebitda14.46
Forecast
1Y Price Target
$10.50Price Target Upside3.75% Upside
Rating ConsensusHold
Number of Analyst Covering0
Global Water Resources Business Overview & Revenue Model
Company DescriptionGlobal 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 MoneyGWRS generates revenue primarily through the sale of water services to residential, commercial, and industrial customers. The company operates under a regulated utility model, which allows it to charge customers based on approved rates set by regulatory bodies. Key revenue streams include water sales, service fees, and wastewater treatment charges. Additionally, GWRS may benefit from partnerships with municipalities and other government entities for infrastructure projects, as well as potential grants or incentives related to water conservation and sustainability initiatives. The company's focus on efficient water management and conservation efforts also positions it to capitalize on growing demand for sustainable water solutions.
Global Water Resources Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company demonstrated growth through acquisitions, legislative support, and infrastructure investments, which contributed to revenue and adjusted EBITDA growth. However, challenges remain, including a decline in building permits, increased operating expenses, and a slight decrease in net income.Q2-2025 Updates
Positive Updates
Tucson Acquisition
Closed acquisition of 7 public water systems, adding approximately 2,200 connections and $7.7 million in rate base at a favorable multiple of 1.05x rate base, expected to generate $1.5 million in annual revenue.
Legislative Support for Growth
Arizona Governor signed Ag-to-Urban water legislation, expected to improve aquifer sustainability and support growth in Global Water's service areas.
Infrastructure Investment
Invested $35.4 million year-to-date into infrastructure improvements in existing utilities to ensure safe and reliable service.
Revenue Growth
Total revenue for Q2 2025 was $14.2 million, up 5.4% compared to Q2 2024, driven by increased service connections, consumption, and higher rates.
Adjusted EBITDA Increase
Adjusted EBITDA increased to $6.9 million in Q2 2025, a 2.1% rise from $6.8 million in Q2 2024.
Negative Updates
Building Permits Decline
14% decrease in building permits in Phoenix metro area and 24% decrease in the City of Maricopa for Q2 2025 compared to the same period in 2024.
Operating Expenses Increase
Operating expenses for Q2 2025 increased by 8.5% to $11.6 million, due to higher depreciation, amortization, personnel costs, and service provider costs.
Net Income Decline
Net income for Q2 2025 was $1.6 million or $0.06 per diluted share, compared to $1.7 million or $0.07 per diluted share in Q2 2024.
Company Guidance
During the Global Water Resources, Inc. 2025 Second Quarter Conference Call, several key metrics and strategic initiatives were discussed. The company reported total revenue of $14.2 million for Q2 2025, marking a 5.4% increase from Q2 2024, driven by a 3.8% increase in active service connections, increased consumption, and higher rates. The Tucson acquisition added approximately 2,200 connections and $7.7 million in rate base at a multiple of 1.05x, generating an expected $1.5 million in annual revenue. Total active service connections increased to 65,639, reflecting a 3.5% annualized growth rate. The company invested $35.4 million in infrastructure improvements year-to-date. Operating expenses increased by 8.5% to $11.6 million, influenced by rises in depreciation, personnel costs, and service provider expenses. Net income for Q2 2025 was $1.6 million, or $0.06 per diluted share, while adjusted EBITDA rose by 2.1% to $6.9 million. The company is advancing its rate case strategies, proposing a $6.5 million annual rate increase under consideration by the Arizona Corporation Commission, and plans are underway to consolidate recent acquisitions for enhanced operational efficiency.Global Water Resources Financial Statement Overview
Summary
Global Water Resources demonstrates strong operational efficiency and improved leverage, but faces challenges with free cash flow generation. The company shows resilience with positive revenue growth and stable margins, but needs to address its free cash flow issues to enhance financial stability.Income Statement
Global Water Resources shows a strong gross profit margin of 67% in the TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 10.3% from 10.9% in the previous year. Revenue growth is positive at 1.37% TTM, recovering from a slight decline in the previous year. The EBIT and EBITDA margins remain robust, reflecting stable operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio has significantly improved to 0.07 in the TTM from 2.62, indicating a substantial reduction in leverage. Return on equity has decreased to 8.9% from 12.1%, suggesting a decline in profitability relative to equity. The equity ratio is strong, reflecting a solid capital structure.65
Positive
Cash Flow
Operating cash flow remains healthy, but free cash flow is negative, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, suggesting that the company is not generating sufficient free cash flow relative to its net income. However, the operating cash flow to net income ratio remains strong, showing good cash conversion efficiency.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.27M | 52.69M | 53.03M | 44.73M | 41.91M | 38.63M |
| Gross Profit | 36.39M | 38.97M | 40.36M | 33.84M | 31.61M | 29.09M |
| EBITDA | 27.20M | 27.06M | 27.50M | 20.55M | 19.45M | 16.28M |
| Net Income | 5.57M | 5.79M | 7.98M | 5.51M | 3.61M | 1.10M |
Balance Sheet | ||||||
| Total Assets | 449.38M | 405.14M | 361.10M | 323.09M | 294.07M | 283.45M |
| Cash, Cash Equivalents and Short-Term Investments | 10.22M | 9.05M | 3.09M | 6.56M | 12.64M | 18.03M |
| Total Debt | 5.50M | 124.77M | 109.46M | 110.90M | 112.91M | 114.69M |
| Total Liabilities | 372.64M | 357.53M | 312.48M | 278.69M | 264.05M | 251.26M |
| Stockholders Equity | 76.74M | 47.60M | 48.62M | 44.39M | 30.03M | 32.19M |
Cash Flow | ||||||
| Free Cash Flow | -38.47M | -10.54M | 3.08M | -10.65M | 2.14M | 5.43M |
| Operating Cash Flow | 17.04M | 21.79M | 25.39M | 23.34M | 20.39M | 14.57M |
| Investing Cash Flow | -55.66M | -32.48M | -28.60M | -34.19M | -20.32M | -9.44M |
| Financing Cash Flow | 31.30M | 17.09M | 406.00K | 4.97M | -7.93M | 7.09M |
Global Water Resources Technical Analysis
Positive
10.12
Price Trends
9.84
Positive
10.04
Positive
10.51
Negative
Market Momentum
0.07
Negative
57.08
Neutral
65.38
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 10.12 is above the 20-day moving average (MA) of 9.83, above the 50-day MA of 9.84, and below the 200-day MA of 10.51, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 264.34M | 19.46 | 11.03% | ― | 40.29% | 124.50% | |
74 Outperform | 337.13M | 14.95 | 8.53% | 3.75% | 7.13% | 22.19% | |
74 Outperform | 559.67M | 35.65 | 7.30% | 1.34% | -26.34% | -61.52% | |
63 Neutral | $278.03M | 45.71 | 8.96% | 3.00% | 4.33% | -13.38% | |
61 Neutral | 443.45M | 22.44 | 8.40% | 2.82% | 4.09% | -14.30% | |
55 Neutral | 370.73M | -8.93 | -92.03% | ― | 460.46% | 1.67% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
GWRS
Global Water Resources
10.12
-2.13
-17.39%
ARTNA
Artesian Resources
32.47
-3.36
-9.38%
CDZI
Cadiz
4.52
1.49
49.17%
CWCO
Consolidated Water Co
35.14
10.38
41.92%
PCYO
Pure Cycle
10.98
0.21
1.95%
YORW
The York Water Company
30.75
-5.95
-16.21%
Global Water Resources Corporate Events
Executive/Board Changes
Global Water Resources Director Announces Retirement
Neutral
Jul 25, 2025
Debra Coy announced her decision to retire from the Board of Directors of Global Water Resources, Inc., effective December 31, 2025. Her retirement is not due to any disagreements with the company’s operations, policies, or practices.
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.