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Here's How Much a $1000 Investment in Consolidated Water Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Consolidated Water (CWCO - Free Report) ten years ago? It may not have been easy to hold on to CWCO for all that time, but if you did, how much would your investment be worth today?

Consolidated Water's Business In-Depth

With that in mind, let's take a look at Consolidated Water's main business drivers. Consolidated Water Co., along with its subsidiaries, is involved in the development and operation of seawater desalination plants and water distribution systems in areas where naturally occurring supplies of potable water are scarce or nonexistent. The company also focuses on expanding operation in areas having a large proportion of tourist properties and growing population. The company was founded in 1973.

Consolidated Water has four business segments, Retail, Bulk, Services and Manufacturing, which contributed 16.8%, 19.1%, 54.4% and 9.7%, respectively, to CWCO’s total revenues for 2023.

Under Retail Water Operations, the company produces and supplies water to end users, including residential, commercial and government customers in the Cayman Islands under an exclusive retail license issued by the Cayman Islands government.  It also operates a desalination plant in Bali, Indonesia that sells water to resort and residential properties.

Under Bulk Water Operations, the company produces and supplies water to government-owned distributors in the Cayman Islands and The Bahamas.

Its services operations provide engineering and management services, which include design and construction, as well as management and operation of desalination plants.

Under Manufacturing operations. the company manufactures and services a wide range of water-related products, and provides design, engineering, management, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment as a result of a 100% equity ownership of Aerex Industries, Inc.

The company operated 10 water production plants in three countries, with a total production capacity of 24.9 million gallons per day. It operates 31 advanced water treatment facilities in the United States.


Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Consolidated Water a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in July 2014 would be worth $2,784.70, or a 178.47% gain, as of July 29, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 175.94% and the price of gold increased 76.22% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for CWCO.

Consolidated Water is currently utilizes the most advanced technology to convert seawater to potable water. The company is expanding operations via acquisitions and organic projects. The acquisition of full ownership of PERC and the return of tourism to the Cayman Islands are expected to drive earnings. The company primarily funds its investment through equity issuance, has hardly any long-term debt. The company has ample liquidity to meet its near-term obligations. Our model projects topline to increase in 2025-2026 time period. Shares of the company have outperformed the industry in the past year. Yet, a delay in the collection of its accounts receivable from its Bahamas subsidiary might negatively impact its consolidated financial results. Ongoing negotiations relating to the license and unfavorable weather conditions also act as headwinds.

The stock has jumped 11.11% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024; the consensus estimate has moved up as well.

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