The Company in a Nutshell
- CWT is another utility part of the Dividend Kings group.
- The stock is highly overvalued.
- Its low yield and high price make CWT unattractive at this time.
- We do not cover California Water Service Group at the moment.
Date Reviewed | N/A |
Company Name | California Water Service Group |
Symbol | CWT |
Sector | Utilities |
Industry | Utilities - Regulated Water |
Beta | 0.488 |
PRO Rating | 2 |
Dividend Safety | 2 |
Business Model
California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii and Texas through its subsidiaries. Its business is conducted through its operating subsidiaries and provides utility services. Its business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, and the provision of domestic and municipal fire protection services. It provides wastewater collection and treatment services, including treatment which allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services and promotion of other non-regulated services.
Current price | 53.84 |
ROE | -2.95 % |
ROIC | -1.40 % |
Shareholder Yield | 0.35 % |
5-Yr Total Return | 11.75 % |
1-Yr Total Return | 14.30 % |
Next Earnings Date | 10-24-24 |
Latest Quarter Information
What the CEO said:
“I’m pleased to see the effects of the 2021 decision on our results. I’m equally pleased with our team’s effort to put together a 2024 California General Rate Case that reflects our dedication to investing diligently in infrastructure, managing expenses responsibly, and structuring rates to keep bills affordable for customers. It reflects our continuing commitment to providing a reliable, sustainable water supply for generations to come.”
What we say:
8-1-2024, CWT reported Q2 2024 EPS of $0.70, representing a 312% increase when compared to the same period last year, and beating previous estimates by $0.28. Revenue reported for the quarter was $244M, representing a 26% increase when compared to Q2 2023, and beating estimates by $28M. Revenue was priarilly driven by increased rates, adding $19.3M, and accrued unbilled revenue as a result of an increase in customer rates, and unbilled days adding $10.4M. The company maintained $82.7 million of cash, of which $45.4 million was classified as restricted, and had additional short-term borrowing capacity of $355 million.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 2.60 % |
5-Yr EPS Growth | -7.70 % |
5-Yr Div Growth | 6.75 % |
Potential Risks
Debt/Equity | 0.85 |
Financial Debt to EBITDA (TTM) | 4.05 |
Current Ratio (Quarterly) | 0.70 |
Credit Score | 39 |
Dividend Growth Perspective
Dividend ($) | 1.12 |
Dividend Yield Fwd | 2.05 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.65 % |
Payout Ratio (%) | 0.00 |
Cash Payout Ratio (%) | -52.05 |
DGR 1-Yr | 7.70 |
DGR 3-Yr | 6.95 |
DGR 5-Yr | 6.75 |
DGR Streak | 56 |
Chowder Score | 8.85 |
Next DVD PMT | 08-23-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 3 B |
PE Ratio | 37.90 |
Fwd PE | 20.20 |
Price to Book Ratio | 2.05 |
DDM Valuation | N/A |
Average 5-Yr PE | 146.05 |
Value Score | 48 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.