Consolidated Water Co. Ltd. Fundamental Analysis (NASDAQ: CWCO)
Consolidated Water Co. Ltd. (NASDAQ: CWCO) shows weak financial fundamentals with a PE ratio of 29.14, profit margin of 12.88%, and ROE of 7.38%. The company generates $0.1B in annual revenue with weak year-over-year growth of -1.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWCO's fundamental strength across five key dimensions:
Efficiency Score
WeakCWCO struggles to generate sufficient returns from assets.
Valuation Score
WeakCWCO trades at a premium to fair value.
Growth Score
WeakCWCO faces weak or negative growth trends.
Financial Health Score
ExcellentCWCO maintains a strong and stable balance sheet.
Profitability Score
WeakCWCO struggles to sustain strong margins.
Key Financial Metrics
Is CWCO Expensive or Cheap?
P/E Ratio
CWCO trades at 29.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CWCO's PEG of 9.62 indicates potential overvaluation.
Price to Book
The market values Consolidated Water Co. Ltd. at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 28.13 times EBITDA. This signals the market has high growth expectations.
How Well Does CWCO Make Money?
Net Profit Margin
For every $100 in sales, Consolidated Water Co. Ltd. keeps $12.88 as profit after all expenses.
Operating Margin
Core operations generate 12.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.38 in profit for every $100 of shareholder equity.
ROA
Consolidated Water Co. Ltd. generates $6.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Consolidated Water Co. Ltd. generates strong operating cash flow of $39.76M, reflecting robust business health.
Free Cash Flow
Consolidated Water Co. Ltd. generates strong free cash flow of $30.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.89 in free cash annually.
FCF Yield
CWCO converts 6.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CWCO Stacks Against Its Sector Peers
| Metric | CWCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.14 | 20.17 | Worse (Expensive) |
| ROE | 7.38% | 999.00% | Weak |
| Net Margin | 12.88% | -702.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 1.75 | Strong (Low Leverage) |
| Current Ratio | 5.95 | 1.71 | Strong Liquidity |
| ROA | 6.25% | 4551305.00% | Weak |
CWCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Consolidated Water Co. Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.67%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
369.11%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
128.48%
Industry Style: Defensive, Dividend, Income
High Growth