📊 CWCO Key Takeaways
Is Consolidated Water Co. Ltd. (CWCO) a Good Investment?
CWCO demonstrates exceptional financial stability with a fortress balance sheet (minimal debt, $126.3M cash) and solid profitability margins (12.6% net margin). However, earnings face headwinds as net income declined 3.3% YoY and diluted EPS plummeted 35.6% despite 3.8% revenue growth, indicating margin compression and potential shareholder dilution. The company's minimal debt, strong liquidity, and positive FCF generation provide downside protection, but weak returns on equity/assets (1.7%/1.5%) and modest growth suggest limited upside potential.
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.
Consolidated Water Co. Ltd. Key Strengths (CWCO)
- Fortress balance sheet: $126.3M cash, 0.00x debt/equity ratio, minimal financial risk
- Exceptional liquidity: 6.04x current ratio with quick ratio of 5.89x
- Stable profitability: 12.6% net margin with consistent positive FCF generation ($4.9M annually)
- Low capital intensity: Modest capex needs ($1.7M) in essential utility business
- 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
- Earnings deterioration: Net income down 3.3% YoY and diluted EPS down 35.6% YoY despite revenue growth signals margin compression
- Poor capital returns: ROE of 1.7% and ROA of 1.5% indicate inefficient deployment of substantial equity base
- Anemic growth: 3.8% YoY revenue growth is below inflation, limiting expansion opportunities
- Capital underutilization: Excessive cash position ($126.3M = 48.5% of assets) relative to business scale suggests suboptimal resource allocation
- 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
- Net income and EPS trend reversal (current -3.3% YoY and -35.6% YoY are concerning)
- Operating margin stability (currently 11.5%, watch for further compression)
- Free cash flow consistency and capital deployment decisions
- Revenue growth acceleration (currently 3.8%, below utility industry benchmarks)
- 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
Strong liquidity with a 6.04x 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 |
|---|---|---|---|
| Q1 2026 | $30.0M | $3.8M | $0.23 |
| 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 |
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
❓ Frequently Asked Questions about CWCO
What is the AI rating for CWCO?
Consolidated Water Co. Ltd. (CWCO) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWCO's key strengths?
Claude: Fortress balance sheet: $126.3M cash, 0.00x debt/equity ratio, minimal financial risk. Exceptional liquidity: 6.04x current ratio with quick ratio of 5.89x. 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: Earnings deterioration: Net income down 3.3% YoY and diluted EPS down 35.6% YoY despite revenue growth signals margin compression. Poor capital returns: ROE of 1.7% and ROA of 1.5% indicate inefficient deployment of substantial equity base. 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 $30.0M.
Does CWCO pay dividends?
Consolidated Water Co. Ltd. pays dividends, with $2.2M 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 $0.23.
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 grade reflects both perspectives for balanced insights.
What is CWCO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Consolidated Water Co. Ltd. has a A grade with 74% 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 1.7% (sector avg: 10%), net margin of 12.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CWCO's AI grade for 2026?
Our dual AI analysis gives Consolidated Water Co. Ltd. a combined A grade 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 $6.5M, with capital expenditures of $1.7M. FCF margin is 16.2%.
How does CWCO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 12.6% (avg: 12%), ROE 1.7% (avg: 10%), current ratio 6.04 (avg: 0.8).