Global Water Resources, Inc.
Global Water Resources, Inc. Fundamental Analysis
Global Water Resources, Inc. (GWRS) shows weak financial fundamentals with a PE ratio of 68.74, profit margin of 5.30%, and ROE of 3.58%. The company generates $0.1B in annual revenue with weak year-over-year growth of -0.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GWRS's fundamental strength across five key dimensions:
Efficiency Score
WeakGWRS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGWRS shows balanced valuation metrics.
Growth Score
WeakGWRS faces weak or negative growth trends.
Financial Health Score
WeakGWRS carries high financial risk with limited liquidity.
Profitability Score
WeakGWRS struggles to sustain strong margins.
Key Financial Metrics
Is GWRS Expensive or Cheap?
P/E Ratio
GWRS trades at 68.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GWRS's PEG of -2.20 indicates potential undervaluation.
Price to Book
The market values Global Water Resources, Inc. at 2.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.64 times EBITDA. This is generally considered low.
How Well Does GWRS Make Money?
Net Profit Margin
For every $100 in sales, Global Water Resources, Inc. keeps $5.30 as profit after all expenses.
Operating Margin
Core operations generate 12.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.58 in profit for every $100 of shareholder equity.
ROA
Global Water Resources, Inc. generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Global Water Resources, Inc. generates strong operating cash flow of $21.46M, reflecting robust business health.
Free Cash Flow
Global Water Resources, Inc. generates weak or negative free cash flow of $-50.17M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.74 in free cash annually.
FCF Yield
GWRS converts -21.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
68.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GWRS Stacks Against Its Sector Peers
| Metric | GWRS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 68.74 | 19.69 | Worse (Expensive) |
| ROE | 3.58% | 936.00% | Weak |
| Net Margin | 5.30% | 8814.00% | Weak |
| Debt/Equity | 1.60 | 1.49 | Neutral |
| Current Ratio | 0.76 | 1.50 | Weak Liquidity |
| ROA | 0.61% | -6168.00% (disorted) | Weak |
GWRS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Global Water Resources, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.05%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
131.39%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
67.44%
Industry Style: Defensive, Dividend, Income
High Growth