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Reasons to Add Consolidated Water (CWCO) to Your Portfolio
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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. The return of tourism to the Cayman Islands is expected to drive the company’s earnings.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections & Long-Term Growth
The Zacks Consensus Estimate for CWCO’s 2023 earnings per share (EPS) has moved up 3.2% in the past 30 days to 97 cents. This implies a year-over-year increase of 79.6%.
The consensus mark for 2023 sales is pinned at $131.6 million, implying year-over-year growth of 39.8%.
Consolidated Water’s long-term (three to five years) earnings growth rate is 8%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, the company’s ROE is 6.21%, higher than the sector’s average of 5.78%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility sector.
Debt Position & Liquidity
At the end of first-quarter 2023, CWCO’s total debt to capital was 0.2%, much better than industry’s average of 47.9%.
The current ratio at the end of the first quarter was 3.29, much higher than the industry’s average of 0.88. The current ratio, being more than 1, indicates that the company will be able to meet its short-term debt obligations without difficulty.
Dividend History
Consolidated Water has been consistently paying dividends since 1997 and increasing shareholders’ value. At present, the company’s quarterly dividend is 8.5 cents per share, resulting in an annualized dividend of 34 cents per share. At the end of first-quarter 2023, the company had paid a total dividend of $1.4 million. Its current dividend yield is 1.58%, better than the Zacks S&P 500 Composite’s 1.48%.
Price Performance
In the past three months, the CWCO stock has returned 43.4% compared with the industry’s average 6.5% growth.
GWRS’ long-term earnings growth rate is 15%. The Zacks Consensus Estimate for 2023 EPS is pegged at 31 cents, indicating a year-over-year improvement of 29.2%.
ED’s long-term earnings growth rate is 2%. The consensus mark for 2023 EPS is pinned at $4.85, indicating year-over-year growth of 6.6%.
NI’s long-term earnings growth rate is 6.9%. The consensus estimate for 2023 EPS is pegged at $1.57, implying a year-over-year increase of 6.8%.
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Reasons to Add Consolidated Water (CWCO) to Your Portfolio
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. The return of tourism to the Cayman Islands is expected to drive the company’s earnings.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections & Long-Term Growth
The Zacks Consensus Estimate for CWCO’s 2023 earnings per share (EPS) has moved up 3.2% in the past 30 days to 97 cents. This implies a year-over-year increase of 79.6%.
The consensus mark for 2023 sales is pinned at $131.6 million, implying year-over-year growth of 39.8%.
Consolidated Water’s long-term (three to five years) earnings growth rate is 8%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, the company’s ROE is 6.21%, higher than the sector’s average of 5.78%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility sector.
Debt Position & Liquidity
At the end of first-quarter 2023, CWCO’s total debt to capital was 0.2%, much better than industry’s average of 47.9%.
The current ratio at the end of the first quarter was 3.29, much higher than the industry’s average of 0.88. The current ratio, being more than 1, indicates that the company will be able to meet its short-term debt obligations without difficulty.
Dividend History
Consolidated Water has been consistently paying dividends since 1997 and increasing shareholders’ value. At present, the company’s quarterly dividend is 8.5 cents per share, resulting in an annualized dividend of 34 cents per share. At the end of first-quarter 2023, the company had paid a total dividend of $1.4 million. Its current dividend yield is 1.58%, better than the Zacks S&P 500 Composite’s 1.48%.
Price Performance
In the past three months, the CWCO stock has returned 43.4% compared with the industry’s average 6.5% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Global Water Resources, Inc. (GWRS - Free Report) , Consolidated Edison (ED - Free Report) and NiSource Inc. (NI - 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.
GWRS’ long-term earnings growth rate is 15%. The Zacks Consensus Estimate for 2023 EPS is pegged at 31 cents, indicating a year-over-year improvement of 29.2%.
ED’s long-term earnings growth rate is 2%. The consensus mark for 2023 EPS is pinned at $4.85, indicating year-over-year growth of 6.6%.
NI’s long-term earnings growth rate is 6.9%. The consensus estimate for 2023 EPS is pegged at $1.57, implying a year-over-year increase of 6.8%.