Global Water Resources (GWRS) AI Stock Analysis

• Market Cap: $256.16M
• Dividend Yield: 3.6%
• Average Volume (3M): 90.91K
• Price to Earnings (P/E): 54.5
• Beta (1Y): 0.61
• 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: 76,366
• 30 Day Avg. Volume: 90,911
• 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: 1.56
• Enterprise Value/Revenue: 7.21
• Enterprise Value/Gross Profit: 10.84
• Enterprise Value/Ebitda: 15.33
• 1Y Price Target: $11.50
• Price Target Upside: 8.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $9.50 ▼(-10.71% Downside)

Global Water Resources shows potential for long-term growth through strategic acquisitions and legislative support. However, current financial challenges, including high valuation and bearish technical indicators, weigh on the stock's attractiveness. The company's ability to manage operational efficiency and cash flow will be crucial for future performance.

Positive Factors

Strategic Acquisitions

The acquisition of Tucson water systems enhances market presence and revenue base, supporting long-term growth and competitive positioning.

Legislative Support

New legislation supports sustainable growth by expanding water resources, aligning with GWRS's focus on environmental sustainability.

Revenue Growth

Consistent revenue growth reflects strong demand for water services and effective business strategies, bolstering long-term financial health.

Negative Factors

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, challenging the company's ability to maintain operational efficiency.

Decrease in Net Income

Declining net income indicates potential profitability issues, which could impact financial stability and investor confidence over time.

Rate Case Challenges

Challenges in rate case approval may limit revenue growth potential and affect the company's ability to invest in future infrastructure.

Global Water Resources Business Overview & Revenue Model

Company Description

Global Water Resources (GWRS) is a leading water resource management company based in the United States, primarily focused on providing sustainable water solutions. The company operates in the water utility sector, offering services that include water reclamation, conservation, and distribution. GWRS's core products involve the treatment and recycling of wastewater, alongside providing potable water services to communities, ensuring reliable access to essential water resources while promoting environmental sustainability.

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: Negative
• Last Price: 10.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.64 is above the 20-day moving average (MA) of 9.08, above the 50-day MA of 9.81, and above the 200-day MA of 10.09, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 32.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWRS.

Global Water Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	73 Outperform	$269.22M	20.60	9.62%	―	-9.25%	12.89%
ARTNA	70 Outperform	$322.33M	14.13	9.25%	3.98%	5.80%	12.33%
YORW	69 Neutral	$462.63M	23.02	8.58%	2.69%	3.63%	-5.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWCO	65 Neutral	$531.79M	31.74	8.10%	1.51%	-17.62%	-54.25%
GWRS	59 Neutral	$256.16M	54.50	6.30%	3.60%	7.06%	-38.94%
MSEX	55 Neutral	$939.81M	21.51	9.27%	2.71%	6.24%	3.35%

Global Water Resources Corporate Events

Global Water Resources Reports Revenue Growth Amid Rising Costs

Global Water Resources, Inc. is a water resource management company based in Phoenix, Arizona, primarily engaged in providing water, wastewater, and recycled water services. The company operates within the regulated utility sector, focusing on sustainable water management practices.

Global Water Resources Earnings Call: Growth Amid Challenges

The recent earnings call for Global Water Resources highlighted a balanced sentiment, reflecting optimism for long-term growth through strategic initiatives and legislative successes, while acknowledging current challenges with decreased building permits, increased operating expenses, and lower net income. The company’s outlook is cautiously optimistic, with promising prospects tempered by immediate operational hurdles.

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.

Global Water Resources Secures $13.1M in Private Placement

On September 30, 2025, Global Water Resources, Inc. entered into a securities purchase agreement with accredited investors for a private placement of 1,270,572 shares of common stock, raising approximately $13.1 million. This transaction, involving key stakeholders like Levine Investments Limited Partnership and board members Jonathan L. Levine and Andrew M. Cohn, reflects strategic financial maneuvering to bolster the company’s capital, potentially impacting its market position and stakeholder relations.

The most recent analyst rating on (GWRS) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Global Water Resources stock, see the GWRS Stock Forecast page.

Global Water Resources’ Earnings Call: Growth Amid Challenges

Global Water Resources’ latest earnings call painted a mixed picture, with both encouraging developments and notable challenges. The company showcased growth through strategic acquisitions, legislative backing, and significant infrastructure investments, which bolstered revenue and adjusted EBITDA. However, it also faced hurdles such as a downturn in building permits, rising operating expenses, and a slight dip in net income.

Global Water Resources Reports Q2 2025 Financial Results

Global Water Resources, Inc. is a water resource management company that operates 39 systems providing water, wastewater, and recycled water services, primarily in the growth corridors around metropolitan Phoenix and Tucson. The company is recognized for its Total Water Management approach, which maximizes the beneficial use of recycled water.