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Reasons to Add Consolidated Water (CWCO) to Your Portfolio Now
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Consolidated Water Co. Ltd.’s (CWCO - Free Report) use of Reverse Osmosis, one of the most advanced water purification technologies to convert seawater to potable water at all water treatment plants, boosts its performance. Given its growth opportunities, CWCO makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks #2 Rank (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 3.9% in the past 90 days to $1.34.
Consolidated Water’s long-term (three to five years) earnings growth rate is 8%. It delivered an average earnings surprise of 55% in the past four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate returns. Currently, the company’s ROE is 18.02%, higher than the industry’s average of 11.49%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility water supply industry.
Debt Position & Liquidity
Currently, Consolidated Water’s total debt to capital is 0.17%, much better than the industry’s average of 54.62%.
The current ratio is 4.99, much higher than the industry’s average of 0.78. The ratio, being greater than one, indicates the company’s ability to meet its future short-term liabilities without difficulties.
Dividend History
Consolidated Water has been consistently paying dividends since 1997 and increasing shareholders’ value. Currently, its quarterly dividend is 9.5 cents per share. This resulted in an annualized dividend of 38 cents per share, 11.8% higher than the previous rate of 34 cents. The company’s current dividend yield is 1.42%, better than the Zacks S&P 500 composite's 1.3%.
Price Performance
In the past two years, CWCO returned 70.7% compared with the industry’s average 0.3% growth.
AWK’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for 2024 EPS is pegged at $5.26, indicating a year-over-year improvement of 7.4%.
AWR’s long-term earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2024 EPS is pinned at $3.03, indicating year-over-year growth of 6.3%.
The Zacks Consensus Estimate for CWT’s 2024 EPS is pinned at $3.25, indicating year-over-year growth of 257.1%. The company delivered an average earnings surprise of 125.4% in the past four quarters.
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Reasons to Add Consolidated Water (CWCO) to Your Portfolio Now
Consolidated Water Co. Ltd.’s (CWCO - Free Report) use of Reverse Osmosis, one of the most advanced water purification technologies to convert seawater to potable water at all water treatment plants, boosts its performance. Given its growth opportunities, CWCO makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks #2 Rank (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 3.9% in the past 90 days to $1.34.
Consolidated Water’s long-term (three to five years) earnings growth rate is 8%. It delivered an average earnings surprise of 55% in the past four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate returns. Currently, the company’s ROE is 18.02%, higher than the industry’s average of 11.49%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility water supply industry.
Debt Position & Liquidity
Currently, Consolidated Water’s total debt to capital is 0.17%, much better than the industry’s average of 54.62%.
The current ratio is 4.99, much higher than the industry’s average of 0.78. The ratio, being greater than one, indicates the company’s ability to meet its future short-term liabilities without difficulties.
Dividend History
Consolidated Water has been consistently paying dividends since 1997 and increasing shareholders’ value. Currently, its quarterly dividend is 9.5 cents per share. This resulted in an annualized dividend of 38 cents per share, 11.8% higher than the previous rate of 34 cents. The company’s current dividend yield is 1.42%, better than the Zacks S&P 500 composite's 1.3%.
Price Performance
In the past two years, CWCO returned 70.7% compared with the industry’s average 0.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are American Water Works (AWK - Free Report) , American States Water (AWR - Free Report) and California Water Service Group (CWT - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AWK’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for 2024 EPS is pegged at $5.26, indicating a year-over-year improvement of 7.4%.
AWR’s long-term earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2024 EPS is pinned at $3.03, indicating year-over-year growth of 6.3%.
The Zacks Consensus Estimate for CWT’s 2024 EPS is pinned at $3.25, indicating year-over-year growth of 257.1%. The company delivered an average earnings surprise of 125.4% in the past four quarters.