📊 CWCO Key Takeaways
Is Consolidated Water Co. Ltd. (CWCO) a Good Investment?
CWCO demonstrates solid operational fundamentals with consistent revenue growth (3.8% YoY), healthy profitability margins (13.9% net margin), and exceptional cash generation (33.2M free cash flow). The company maintains fortress-like balance sheet strength with minimal debt, substantial cash reserves (123.8M), and exceptional liquidity ratios, positioning it well for shareholder returns or strategic investments.
Consolidated Water shows high-quality fundamentals driven by strong margins, excellent free cash flow generation, and an exceptionally conservative balance sheet with large cash reserves and virtually no debt. Growth is modest and net income was essentially flat year over year, but the company’s financial resilience and cash-rich position support a favorable fundamental view if it can convert liquidity into sustained earnings growth.
Why Buy Consolidated Water Co. Ltd. Stock? CWCO Key Strengths
- Exceptional balance sheet with 6.12x current ratio and 0.00x debt/equity ratio indicating minimal financial risk
- Strong free cash flow generation of 33.2M with 25.1% FCF margin demonstrating cash conversion quality
- Consistent profitability with stable 13.9% operating and net margins despite modest revenue growth
- Very high interest coverage of 548.0x and substantial cash position of 123.8M providing strategic flexibility
- Recurring revenue model in water supply sector with predictable demand characteristics
- Very strong balance sheet with $123.79M in cash and essentially no long-term debt
- Healthy profitability profile with 36.6% gross margin and 13.9% operating and net margins
- Robust cash generation with $41.71M in operating cash flow and $33.17M in free cash flow
CWCO Stock Risks: Consolidated Water Co. Ltd. Investment Risks
- Weak earnings per share performance with 35.6% YoY decline despite net income stability, suggesting share dilution or capital structure changes
- Muted revenue growth of 3.8% YoY indicates limited organic expansion and potential market saturation in water utility sector
- Low return on equity (8.3%) and return on assets (7.1%) suggest capital is not being deployed with high efficiency despite strong balance sheet
- Minimal debt utilization may indicate underlevered position or management's conservative stance, missing potential returns from strategic capital deployment
- Regulatory and commodity price exposure inherent in water utility operations with limited pricing power in regulated markets
- Revenue growth of 3.8% and net income growth of 0.1% suggest limited near-term earnings momentum
- Diluted EPS fell 35.6% year over year, indicating possible dilution or lower per-share earnings quality
- Returns on equity and assets are solid but not exceptional given the company’s large cash balance
Key Metrics to Watch
- Operating cash flow trend and free cash flow sustainability amid capital expenditure requirements
- Revenue growth acceleration and customer acquisition metrics to assess market expansion
- Return on equity and return on assets improvement to validate capital deployment efficiency
- EPS trend reversal and reconciliation with net income growth trajectory
- Capital expenditure levels and dividend/buyback policy to track capital allocation decisions
- Revenue and net income growth acceleration
- Diluted EPS trend versus net income and share count changes
Consolidated Water Co. Ltd. (CWCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 6.12x current ratio provides a solid financial cushion.
CWCO Profit Margin, ROE & Profitability Analysis
CWCO vs Utilities Sector: How Consolidated Water Co. Ltd. Compares
How Consolidated Water Co. Ltd. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Consolidated Water Co. Ltd. Stock Overvalued? CWCO Valuation Analysis 2026
Based on fundamental analysis, Consolidated Water Co. Ltd. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Consolidated Water Co. Ltd. Balance Sheet: CWCO Debt, Cash & Liquidity
CWCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Consolidated Water Co. Ltd.'s revenue has grown significantly by 626% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.86 reflects profitable operations.
CWCO Revenue Growth, EPS Growth & YoY Performance
CWCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $33.4M | $4.5M | $0.28 |
| Q2 2025 | $32.5M | $5.1M | $0.32 |
| Q1 2025 | $33.7M | $4.8M | $0.30 |
| Q3 2024 | $33.4M | $4.5M | $0.28 |
| Q2 2024 | $32.5M | $7.3M | $0.46 |
| Q1 2024 | $32.9M | $3.8M | $0.24 |
| Q3 2023 | $25.1M | $317.7K | $0.02 |
| Q2 2023 | $21.1M | $2.3M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Consolidated Water Co. Ltd. Dividends, Buybacks & Capital Allocation
CWCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Consolidated Water Co. Ltd. (CIK: 0000928340)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 7, 2026 | 8-K | cwco-20260401x8k.htm | View → |
| Mar 26, 2026 | 4 | xslF345X06/form4-03262026_040307.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/form4-03262026_040305.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/form4-03262026_040301.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/form4-03232026_050301.xml | View → |
❓ Frequently Asked Questions about CWCO
What is the AI rating for CWCO?
Consolidated Water Co. Ltd. (CWCO) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWCO's key strengths?
Claude: Exceptional balance sheet with 6.12x current ratio and 0.00x debt/equity ratio indicating minimal financial risk. Strong free cash flow generation of 33.2M with 25.1% FCF margin demonstrating cash conversion quality. ChatGPT: Very strong balance sheet with $123.79M in cash and essentially no long-term debt. Healthy profitability profile with 36.6% gross margin and 13.9% operating and net margins.
What are the risks of investing in CWCO?
Claude: Weak earnings per share performance with 35.6% YoY decline despite net income stability, suggesting share dilution or capital structure changes. Muted revenue growth of 3.8% YoY indicates limited organic expansion and potential market saturation in water utility sector. ChatGPT: Revenue growth of 3.8% and net income growth of 0.1% suggest limited near-term earnings momentum. Diluted EPS fell 35.6% year over year, indicating possible dilution or lower per-share earnings quality.
What is CWCO's revenue and growth?
Consolidated Water Co. Ltd. reported revenue of $132.1M.
Does CWCO pay dividends?
Consolidated Water Co. Ltd. pays dividends, with $7.9M distributed to shareholders in the trailing twelve months.
Where can I find CWCO SEC filings?
Official SEC filings for Consolidated Water Co. Ltd. (CIK: 0000928340) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWCO's EPS?
Consolidated Water Co. Ltd. has a diluted EPS of $1.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CWCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Consolidated Water Co. Ltd. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CWCO stock overvalued or undervalued?
Valuation metrics for CWCO: ROE of 8.3% (sector avg: 10%), net margin of 13.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CWCO stock in 2026?
Our dual AI analysis gives Consolidated Water Co. Ltd. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CWCO's free cash flow?
Consolidated Water Co. Ltd.'s operating cash flow is $41.7M, with capital expenditures of $8.5M. FCF margin is 25.1%.
How does CWCO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 13.9% (avg: 12%), ROE 8.3% (avg: 10%), current ratio 6.12 (avg: 0.8).