California Water Service Group

$ 45.20 0.44 %

California Water Service Group (CWT), through its various subsidiaries, operates as a water utility, delivering essential water services and related offerings across several states, including California, Washington, New Mexico, Hawaii, and Texas. The company's operations encompass the entire water supply chain, from procuring, storing, treating, and rigorously testing water to its widespread distribution and ultimate sale. This water is utilized for a diverse array of purposes, spanning domestic consumption, industrial processes, public use, agricultural irrigation, and crucial fire protection. The group serves a substantial customer base, catering to approximately 494,500 connections across 100 communities in California. Moreover, on the Hawaiian islands of Maui and Hawaii, it manages roughly 6,200 water and wastewater customer hookups. In Washington, approximately 36,400 connections receive service in locations such as Tacoma, Olympia, Graham, Spanaway, Puyallup, and Gig Harbor. New Mexico communities like Belen, Los Lunas, Indian Hills, and Elephant Butte are served by roughly 8,600 water and wastewater connections. Beyond its core regulated utility functions, California Water Service Group provides various non-regulated, water-related services. These include the management of water systems for both municipal and private entities, the operation of recycled water distribution networks, and specialized services such as water system operation, meter reading, and billing for external companies and public bodies. Furthermore, it generates income by leasing communication antenna sites on its land to telecommunications companies, and it manages the billing of optional third-party insurance schemes for its residential clients. Laboratory services are also part of its offerings. Lastly, the organization handles wastewater collection and purification processes. Established in 1926, the company's corporate headquarters are situated in San Jose, California.

CEO: Martin A. Kropelnicki - https://www.calwatergroup.com

Price objectif

$54 19.47 %

Recommandation

Buy

DCF

$ -71.30

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CWT vs S&P500

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Quick ratio

0.65

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

22.60

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

2.00

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

6.96 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

2.91 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

5.65

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.95

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

-3.73

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

61.90 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
0.82 indicates a high risk of bankruptcy
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Cash / Debt

Cash Ratio
0.19 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.29 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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