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

American States Water Co.

Select Water Solutions, Inc.

Artesian Resources Corp.

Essential Utilities, Inc.

Consolidated Water Co. Ltd.

California Water Service Group

Middlesex Water Co.

Aris Water Solutions, Inc.

SJW Group

The York Water Co.

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 7.62% and Operating profit at -0.50% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.73% signifying low profitability per unit of shareholders funds

With ROCE of 3.30%, it has a very expensive valuation with a 1.59 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 -20.32%, its profits have fallen by -48.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.32% 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Global Water Resources, Inc.

-20.6%

-0.88

38.75%

S&P 500

16.06%

1.20

13.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.62%

EBIT Growth (5y)

-0.50%

EBIT to Interest (avg)

1.71

Debt to EBITDA (avg)

5.27

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

0.29

Tax Ratio

26.07%

Dividend Payout Ratio

278.35%

Pledged Shares

Institutional Holding

35.52%

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

2.48

EV to EBIT

48.20

EV to EBITDA

15.32

EV to Capital Employed

1.59

EV to Sales

6.19

PEG Ratio

Dividend Yield

3.69%

ROCE (Latest)

3.30%

ROE (Latest)

3.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 531.95

RAW MATERIAL COST(Y)

Fallen by -0.81% (YoY

NET SALES(Q)

Highest at USD 17.77 MM

OPERATING PROFIT(Q)

Highest at USD 8.99 MM

OPERATING PROFIT MARGIN(Q)

Highest at 50.6 %

PRE-TAX PROFIT(Q)

Highest at USD 3.72 MM

NET PROFIT(Q)

Highest at USD 2.75 MM

EPS(Q)

Highest at USD 0.1

-8What is not working for the Company

NET PROFIT(9M)

At USD 1.42 MM has Grown at -46.41%

ROCE(HY)

Lowest at 3.88%

CASH AND EQV(HY)

Lowest at USD 3.26 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.31 times

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

Interest Coverage Ratio

Highest at 531.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 17.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 8.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 50.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 3.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 3.72 MM has Grown at 67.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 2.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 2.75 MM has Grown at 70.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -0.81% (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 Global Water Resources, Inc.

Cash and Eqv

Lowest at USD 3.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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