Consolidated Water Co. Ltd. (CWCO) 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

Select Water Solutions, Inc.

Consolidated Water Co. Ltd.

Artesian Resources Corp.

Essential Utilities, Inc.

American States Water Co.

Middlesex Water Co.

American Water Works Co., Inc.

SJW Group

Aris Water Solutions, Inc.

The York Water Co.

California Water Service Group

Why is Consolidated Water Co. Ltd. ?

The company is Net-Debt Free

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.42%

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 199,907.79
INVENTORY TURNOVER RATIO(HY) Lowest at 14.3 times
NET SALES(Q) At USD 29.97 MM has Fallen at -9.22%

With ROE of 8.67%, it has a expensive valuation with a 2.31 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.94%, its profits have risen by 4.1% ; the PEG ratio of the company is 7.6

High Institutional Holdings at 85.59%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 7.32% over the previous quarter.

Underperformed the market in the last 1 year

The stock has generated a return of 1.94% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Consolidated Water Co. Ltd. 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 Consolidated Water Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Consolidated Water Co. Ltd.

1.94%

0.61

29.93%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.70%

EBIT Growth (5y)

19.26%

EBIT to Interest (avg)

15.71

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.74

Tax Ratio

9.90%

Dividend Payout Ratio

46.32%

Pledged Shares

Institutional Holding

85.59%

ROCE (avg)

12.40%

ROE (avg)

7.42%

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

2.31

EV to EBIT

21.31

EV to EBITDA

15.04

EV to Capital Employed

3.95

EV to Sales

2.95

PEG Ratio

7.64

Dividend Yield

1.64%

ROCE (Latest)

18.52%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -55.26 %

RAW MATERIAL COST(Y)

Fallen by 1.46% (YoY

CASH AND EQV(HY)

Highest at USD 250.12 MM

DIVIDEND PER SHARE(HY)

Highest at USD 3.08

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 199,907.79

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.3 times

NET SALES(Q)

At USD 29.97 MM has Fallen at -9.22%

PRE-TAX PROFIT(Q)

At USD 4.18 MM has Fallen at -21.83%

Here's what is working for Consolidated Water Co. Ltd.

Debt-Equity Ratio

Lowest at -55.26 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 250.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 3.08

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.46% (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

Depreciation

Highest at USD 1.97 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Consolidated Water Co. Ltd.

Interest Coverage Ratio

Lowest at 199,907.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At USD 29.97 MM has Fallen at -9.22%

over average net sales of the previous four periods of USD 33.02 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 4.18 MM has Fallen at -21.83%

over average net sales of the previous four periods of USD 5.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Inventory Turnover Ratio

Lowest at 14.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio