We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Consolidated Water (CWCO) to Your Portfolio Now
Read MoreHide Full Article
Consolidated Water Co. Ltd. (CWCO - Free Report) is going to benefit from the return of tourism to the Cayman Islands, which will further drive earnings. The 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 Zacks Consensus Estimate for CWCO’s 2023 and 2024 earnings per share (EPS) has moved up 3.2% and 9.1%, respectively, in the past 60 days.
The consensus mark for 2023 sales is pegged at $132.3 million, implying year-over-year growth of 40.5%.
Consolidated Water’s long-term (three- to five-year) earnings growth rate is 8%.
Debt Position & Liquidity
At the end of first-quarter 2023, CWCO’s total debt to capital was 0.1%, much better than the industry’s average of 46.7%.
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 of more than 1 indicates that the company will be able to meet its short-term debt obligations without difficulty.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing 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 CWCO has been utilizing the funds more constructively than its peers in the utility sector
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 year, the CWCO stock has returned 50.4% compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are First Energy (FE - Free Report) , Consolidated Edison (ED - Free Report) and NiSource Inc. (NI - Free Report) , each holding a Zacks Rank #2 (Buy) at present.
FE’s long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.51, improving 0.4% in the past 60 days.
ED’s long-term earnings growth rate is 2%. The consensus mark for 2023 EPS is $4.86, rising 0.2% in the past 60 days.
NI’s long-term earnings growth rate is 7%. The consensus estimate for 2023 EPS is pegged at $1.57, up 1.9% in the past 60 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Reasons to Add Consolidated Water (CWCO) to Your Portfolio Now
Consolidated Water Co. Ltd. (CWCO - Free Report) is going to benefit from the return of tourism to the Cayman Islands, which will further drive earnings. The 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.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Projections & Long-Term Growth
The Zacks Consensus Estimate for CWCO’s 2023 and 2024 earnings per share (EPS) has moved up 3.2% and 9.1%, respectively, in the past 60 days.
The consensus mark for 2023 sales is pegged at $132.3 million, implying year-over-year growth of 40.5%.
Consolidated Water’s long-term (three- to five-year) earnings growth rate is 8%.
Debt Position & Liquidity
At the end of first-quarter 2023, CWCO’s total debt to capital was 0.1%, much better than the industry’s average of 46.7%.
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 of more than 1 indicates that the company will be able to meet its short-term debt obligations without difficulty.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing 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 CWCO has been utilizing the funds more constructively than its peers in the utility sector
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 year, the CWCO stock has returned 50.4% compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are First Energy (FE - Free Report) , Consolidated Edison (ED - Free Report) and NiSource Inc. (NI - Free Report) , each holding a Zacks Rank #2 (Buy) at present.
FE’s long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.51, improving 0.4% in the past 60 days.
ED’s long-term earnings growth rate is 2%. The consensus mark for 2023 EPS is $4.86, rising 0.2% in the past 60 days.
NI’s long-term earnings growth rate is 7%. The consensus estimate for 2023 EPS is pegged at $1.57, up 1.9% in the past 60 days.