Global Water Resources, Inc. (GWRS) 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

Consolidated Water Co. Ltd.

Artesian Resources Corp.

SJW Group

California Water Service Group

American States Water Co.

Middlesex Water Co.

Essential Utilities, Inc.

Aris Water Solutions, Inc.

The York Water Co.

Select Water Solutions, Inc.

Global Water Resources, Inc.

Why is Global Water Resources, Inc. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 8.11% and Operating profit at 1.93% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.73% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

ROCE(HY) Lowest at 6.3%
PRE-TAX PROFIT(Q) At USD 2.36 MM has Fallen at -40.87%
NET PROFIT(Q) At USD 1.72 MM has Fallen at -41.3%

With ROCE of 4.00%, it has a very expensive valuation with a 1.64 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 -31.16%, its profits have fallen by -32.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.16% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Global Water Resources, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Global Water Resources, Inc.

-31.25%

-1.24

32.02%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.11%

EBIT Growth (5y)

1.93%

EBIT to Interest (avg)

1.71

Debt to EBITDA (avg)

5.27

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

0.30

Tax Ratio

26.07%

Dividend Payout Ratio

126.45%

Pledged Shares

Institutional Holding

31.86%

ROCE (avg)

5.85%

ROE (avg)

10.73%

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

2.45

EV to EBIT

40.99

EV to EBITDA

14.75

EV to Capital Employed

1.64

EV to Sales

6.00

PEG Ratio

Dividend Yield

3.88%

ROCE (Latest)

4.00%

ROE (Latest)

4.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 121.78%

NET SALES(Q)

Highest at USD 15.52 MM

-12What is not working for the Company

ROCE(HY)

Lowest at 6.3%

PRE-TAX PROFIT(Q)

At USD 2.36 MM has Fallen at -40.87%

NET PROFIT(Q)

At USD 1.72 MM has Fallen at -41.3%

RAW MATERIAL COST(Y)

Grown by 9.07% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.46 times

Here's what is working for Global Water Resources, Inc.

Net Sales

Highest at USD 15.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 121.78%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Global Water Resources, Inc.

Pre-Tax Profit

At USD 2.36 MM has Fallen at -40.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.72 MM has Fallen at -41.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 7.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.07% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales