Global Water Resources Inc (GWRS)
NASDAQ:GWRS
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Global Water Resources
(NASDAQ:GWRS)
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Rating:54Neutral
Price Target:
$8.00
▲(2.04% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by mixed financial performance (improving balance sheet and revenue growth but sharply weaker margins and deeply negative free cash flow). Technicals also weigh on the rating given the clear downtrend despite oversold signals. Valuation is a headwind due to a very high P/E, while earnings-call commentary supports longer-term growth but underscores near-term earnings, expense, and regulatory timing risks.
Positive Factors
Regulated, recurring revenue model
As a certificated regulated water utility, the company earns recurring customer billings with rates set or approved by regulators. That model provides durable, predictable revenue and cost-recovery mechanisms over multi-year rate cycles, supporting steady cashflows and investment planning.
Negative Factors
Deeply negative free cash flow
Sustained negative free cash flow reflects heavy upfront capital spending that operating cash cannot cover, increasing dependence on external financing or equity. If rate recovery is delayed, this pressure can persist for multiple quarters and constrain discretionary investment or dividend capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated, recurring revenue model
As a certificated regulated water utility, the company earns recurring customer billings with rates set or approved by regulators. That model provides durable, predictable revenue and cost-recovery mechanisms over multi-year rate cycles, supporting steady cashflows and investment planning.
Read all positive factors
Global Water Resources (GWRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$225.45M
Dividend Yield3.56%
Average Volume (3M)96.83K
Price to Earnings (P/E)77.2
Beta (1Y)0.65
Revenue Growth7.06%
EPS Growth-38.94%
CountryUS
Employees122
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)-0.02
Shares Outstanding28,756,853
10 Day Avg. Volume91,901
30 Day Avg. Volume96,826
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 Cap1.60
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit14.38
Enterprise Value/Ebitda15.97
Forecast
1Y Price Target
$12.50Price Target Upside59.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)$67.75M
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
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 fro...
Global Water Resources Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: structurally positive developments include significant rate base growth (+$70M, +59%), substantial capital investment ($67.3M), connection growth (6.3% total; 3.2% organic), a strategic Tucson acquisition, and supportive state infrastructure and water policy. However, near-term financial performance is under pressure — net income and adjusted net income roughly halved year-over-year, operating expenses rose 12.2%, a one-time asset loss related to the Southwest plant occurred, and permit activity showed notable declines (nearly –20% in Phoenix MSA, –39% in Maricopa). Regulatory lag and the unique rate case timing add recovery uncertainty. Overall, the company shows meaningful long-term growth positioning but faces clear short-term earnings and expense challenges.Positive Updates
Significant Rate Base Growth
Increased collective rate baseable assets by $70 million (59%) across 2024 and 2025 related to Santa Cruz and Palo Verde rate cases, indicating material long-term rate base expansion.
Negative Updates
Decline in Net Income and EPS
Net income fell to $3.0 million ($0.11 per diluted share) in 2025 from $5.8 million ($0.24 per diluted share) in 2024; adjusted net income decreased to $3.9 million ($0.14) from $6.3 million ($0.26).
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Rate Base Growth
Increased collective rate baseable assets by $70 million (59%) across 2024 and 2025 related to Santa Cruz and Palo Verde rate cases, indicating material long-term rate base expansion.
Read all positive updates
Company Guidance
Guidance for 2026 is focused on controlling expenses and slowing the pace of capital investments after a near‑record 2025: the company invested $67.3 million in infrastructure last year and moved $70 million (59%) of rate‑baseable assets into service (including 2024), but expects to tighten spending while pursuing regulatory recovery (filed testimony seeks ~ $4.3 million of additional revenue; the Santa Cruz/Palo Verde hearing is scheduled for August 2026 with ACC staff testimony due April 15, 2026). Key 2025 metrics cited as context include 68,577 total active service connections (+6.3% year‑over‑year; 3.2% organic growth excluding the July 2025 acquisition of seven Tucson systems), total revenue of $55.8 million (+$3.1 million or +5.8%), operating expenses of $48.6 million (+$5.3 million or +12.2%), depreciation/amortization up ~$2.3 million, O&M up ~$2.0 million, G&A up ~$1.0 million, other expense $3.2 million (vs $1.5 million), a $1.3 million loss on asset disposals, net income $3.0 million ($0.11 diluted EPS) vs $5.8 million ($0.24), adjusted net income $3.9 million ($0.14) vs $6.3 million ($0.26), and adjusted EBITDA of $26.5 million (down 0.7% from $26.7 million).Global Water Resources Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 55.76M | 52.69M | 53.03M | 44.73M | 41.91M |
| Gross Profit | 25.01M | 38.97M | 40.36M | 33.84M | 31.61M |
| EBITDA | 22.52M | 27.06M | 27.50M | 20.55M | 19.45M |
| Net Income | 2.96M | 5.79M | 7.98M | 5.51M | 3.61M |
Balance Sheet | |||||
| Total Assets | 482.91M | 405.14M | 361.10M | 323.09M | 294.07M |
| Cash, Cash Equivalents and Short-Term Investments | 4.08M | 9.05M | 3.09M | 6.56M | 12.64M |
| Total Debt | 138.29M | 124.77M | 109.46M | 110.90M | 112.91M |
| Total Liabilities | 396.30M | 357.53M | 312.48M | 278.69M | 264.05M |
| Stockholders Equity | 86.62M | 47.60M | 48.62M | 44.40M | 30.03M |
Cash Flow | |||||
| Free Cash Flow | -47.15M | -10.54M | 3.08M | -10.65M | 2.14M |
| Operating Cash Flow | 20.17M | 21.79M | 25.39M | 23.34M | 20.39M |
| Investing Cash Flow | -75.42M | -32.48M | -28.60M | -34.19M | -20.32M |
| Financing Cash Flow | 50.93M | 17.09M | 406.00K | 4.97M | -7.93M |
Global Water Resources Technical Analysis
Neutral
7.84
Price Trends
8.31
Negative
8.45
Negative
9.19
Negative
Market Momentum
-0.21
Negative
50.33
Neutral
77.43
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 7.84 is above the 20-day moving average (MA) of 7.54, below the 50-day MA of 8.31, and below the 200-day MA of 9.19, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $251.02M | 14.74 | 9.79% | ― | -9.25% | 12.89% | |
67 Neutral | $334.85M | 14.28 | 9.26% | 3.87% | 5.80% | 12.33% | |
67 Neutral | $996.48M | 26.96 | 9.08% | 2.67% | 6.24% | 3.35% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $542.62M | 30.64 | 8.41% | 1.40% | -17.62% | -54.25% | |
58 Neutral | $452.10M | 22.20 | 8.49% | 2.68% | 3.63% | -5.82% | |
54 Neutral | $225.45M | 77.24 | 3.58% | 3.56% | 7.06% | -38.94% |
* Utilities Sector Average
GWRS
Global Water Resources
7.84
-1.77
-18.41%
ARTNA
Artesian Resources
32.19
1.46
4.75%
CWCO
Consolidated Water Co
33.99
11.00
47.85%
MSEX
Middlesex Water Company
53.80
-6.24
-10.39%
PCYO
Pure Cycle
10.42
0.09
0.87%
YORW
The York Water Company
31.29
-1.44
-4.39%
Global Water Resources Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Global Water Resources Secures $15 Million Loan
Neutral
Dec 16, 2025
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...
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.