California Water Service Group (CWT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

American Water Works Co., Inc.

Select Water Solutions, Inc.

Artesian Resources Corp.

Consolidated Water Co. Ltd.

Essential Utilities, Inc.

American States Water Co.

California Water Service Group

Middlesex Water Co.

Aris Water Solutions, Inc.

SJW Group

The York Water Co.

Why is California Water Service Group ?

Poor long term growth as Operating profit has grown by an annual rate 16.69% of over the last 5 years

Flat results in Jun 25

NET PROFIT(HY) At USD 55.5 MM has Grown at -49.76%
DEBT-EQUITY RATIO (HY) Highest at 87.04 %
INTEREST(Q) Highest at USD 16.54 MM

With ROCE of 6.36%, it has a very expensive valuation with a 1.36 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.43%, its profits have fallen by -6.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.43% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to California Water Service Group should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is California Water Service Group for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

California Water Service Group

6.88%

-0.33

23.58%

S&P 500

21.51%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.72%

EBIT Growth (5y)

4.16%

EBIT to Interest (avg)

3.15

Debt to EBITDA (avg)

4.35

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.32

Tax Ratio

17.51%

Dividend Payout Ratio

55.81%

Pledged Shares

Institutional Holding

91.36%

ROCE (avg)

6.21%

ROE (avg)

8.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.59

EV to EBIT

23.09

EV to EBITDA

12.78

EV to Capital Employed

1.31

EV to Sales

4.19

PEG Ratio

Dividend Yield

2.74%

ROCE (Latest)

5.68%

ROE (Latest)

7.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 328.18 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.32

RAW MATERIAL COST(Y)

Fallen by -11.41% (YoY

CASH AND EQV(HY)

Highest at USD 192.89 MM

-6What is not working for the Company

ROCE(HY)

Lowest at 7.7%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.32 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 35.86%

INTEREST(Q)

Highest at USD 19.77 MM

Here's what is working for California Water Service Group

Dividend per share

Highest at USD 4.32 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 328.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 192.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for California Water Service Group

Debtors Turnover Ratio

Lowest at 4.32 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at USD 19.77 MM

in the last five periods and Increased by 6.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 35.86%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)