Connecticut Water ended 2016 on a dismal note, as its fourth quarter as well as full-year earnings figures failed to meet the Zacks Consensus Estimate. Moreover, earnings in the fourth quarter declined year-over-year, while revenues improved. Also, shares of Connecticut Water Services returned more than the broader industry over the last twelve months. Meanwhile, the company is subject to stringent environment regulations, demand variations with weather patterns, risk of failure of water mains and contamination of water sources. Moreover, its valuation from EV/EBITDA multiple’s perspective looks stretched when compared to its own range in the last one year. On a bright note, Connecticut Water continues to strengthen its existing infrastructure through regular capital investments, which is a must in the water utility space. In addition, customer expansion in its service territories is boosting demand.