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California Water Service (CWT) Arm to Acquire Stroh's Water
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California Water Service Group (CWT - Free Report) announced that its unit, Washington Water Service, signed an agreement to acquire the water assets of Stroh’s Water Company. The acquisition is subject to customary conditions and approval by the Washington Utilities and Transportation Commission.
The acquisition of Stroh’s water system will add 900 customers to Washington Water Service’s customer base. Washington Water aims to improve the reliability of Stroh’s Water services by interconnecting the Stroh’s system with its own. Since March 2021, Washington Water has been serving Stroh’s Water customers through an operation and maintenance agreement and this latest acquisition will enable it to serve customers directly.
Strengthening Operations via Acquisitions & Investments
California Water Service’s customer base increased year over year by 0.8% in 2021. CWT is making steady efforts to grow either organically or inorganically and the customer base is likely to continue witnessing this uptrend in 2022. In March 2022, the utility’s another unit, New Mexico Water Service, signed an agreement to acquire the assets of Monterey Water Company, which will further expand the customer base and is expected to add nearly 100 undeveloped lots to be served in the future. California Water Service makes strategic acquisitions to expand its operations in the United States. In 2021, CWT’s units completed four acquisitions, which added 585 water connections and 3000 wastewater connections.
The aging of the water and wastewater pipelines is currently a big concern for the industry and requires consistent investments to maintain and upgrade infrastructure. California Water Service invested $293.2 million in 2021 and expects to invest $1,080 million in the 2022-2024 period for upgrading infrastructure.
Some stocks in the water industry that are expanding operations through acquisitions are American Water Works (AWK - Free Report) , Essential Utilities (WTRG - Free Report) and Consolidated Water (CWCO - Free Report) .
American Water Works continues to widen its market footprint through strategic acquisitions. In 2021, the company expanded the customer base by 20,000 through 23 closed acquisitions in six states.
American Water Works’ long-term (three to five years) earnings growth is currently pegged at 8.1%. The Zacks Consensus Estimate for AWK’s 2022 earnings implies year-over-year growth of 4.7%.
In 2021, Essential Utilities closed two acquisitions, which added 7,700 new customers. During the six years ended Dec 31, 2021, Essential Utilities expanded utility operations by completing many water and wastewater acquisitions, which, in turn, added 94,000 new customers.
Essential Utilities’ long-term earnings growth is currently pegged at 6.1%. The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 6.6%.
Consolidated Water acquired 100% interest in Aerex Industries, Inc., a U.S. original equipment manufacturer and service provider of a wide range of products and services for industrial water treatment. Consolidated Water also acquired 51% of PERC Water Corporation, a water infrastructure provider, which expanded CWCO’s product offerings and presence in the United States. These acquired units continue to boost the company’s performance and expand the customer base.
Consolidated Water’s long-term earnings growth is currently pegged at 8%. The Zacks Consensus Estimate for Consolidated Water’s 2022 earnings implies year-over-year growth of 130.4%.
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California Water Service (CWT) Arm to Acquire Stroh's Water
California Water Service Group (CWT - Free Report) announced that its unit, Washington Water Service, signed an agreement to acquire the water assets of Stroh’s Water Company. The acquisition is subject to customary conditions and approval by the Washington Utilities and Transportation Commission.
The acquisition of Stroh’s water system will add 900 customers to Washington Water Service’s customer base. Washington Water aims to improve the reliability of Stroh’s Water services by interconnecting the Stroh’s system with its own. Since March 2021, Washington Water has been serving Stroh’s Water customers through an operation and maintenance agreement and this latest acquisition will enable it to serve customers directly.
Strengthening Operations via Acquisitions & Investments
California Water Service’s customer base increased year over year by 0.8% in 2021. CWT is making steady efforts to grow either organically or inorganically and the customer base is likely to continue witnessing this uptrend in 2022. In March 2022, the utility’s another unit, New Mexico Water Service, signed an agreement to acquire the assets of Monterey Water Company, which will further expand the customer base and is expected to add nearly 100 undeveloped lots to be served in the future. California Water Service makes strategic acquisitions to expand its operations in the United States. In 2021, CWT’s units completed four acquisitions, which added 585 water connections and 3000 wastewater connections.
The aging of the water and wastewater pipelines is currently a big concern for the industry and requires consistent investments to maintain and upgrade infrastructure. California Water Service invested $293.2 million in 2021 and expects to invest $1,080 million in the 2022-2024 period for upgrading infrastructure.
Zacks Rank & Price Performance
California Water Service presently has a Zacks Rank #3 (Hold). In the past year, shares of CWT have rallied 2.4%, underperforming the industry’s rise of 13.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Acquisitions by Water Utilities
Some stocks in the water industry that are expanding operations through acquisitions are American Water Works (AWK - Free Report) , Essential Utilities (WTRG - Free Report) and Consolidated Water (CWCO - Free Report) .
American Water Works continues to widen its market footprint through strategic acquisitions. In 2021, the company expanded the customer base by 20,000 through 23 closed acquisitions in six states.
American Water Works’ long-term (three to five years) earnings growth is currently pegged at 8.1%. The Zacks Consensus Estimate for AWK’s 2022 earnings implies year-over-year growth of 4.7%.
In 2021, Essential Utilities closed two acquisitions, which added 7,700 new customers. During the six years ended Dec 31, 2021, Essential Utilities expanded utility operations by completing many water and wastewater acquisitions, which, in turn, added 94,000 new customers.
Essential Utilities’ long-term earnings growth is currently pegged at 6.1%. The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 6.6%.
Consolidated Water acquired 100% interest in Aerex Industries, Inc., a U.S. original equipment manufacturer and service provider of a wide range of products and services for industrial water treatment. Consolidated Water also acquired 51% of PERC Water Corporation, a water infrastructure provider, which expanded CWCO’s product offerings and presence in the United States. These acquired units continue to boost the company’s performance and expand the customer base.
Consolidated Water’s long-term earnings growth is currently pegged at 8%. The Zacks Consensus Estimate for Consolidated Water’s 2022 earnings implies year-over-year growth of 130.4%.