Fundamental analysis: Consolidated Water Co. Ltd. (CWCO)

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Poor) and growth (Average), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.5

Business has been growing at a low pace. It's been similar to peer companies.
Consolidated Water Co. Ltd. business varies, ups and downs are rather normal. Risk is sufficient. It looks worse than most rivals.

Margins score: 7.0

CWCO profit margins -on goods and services sold- are usually sufficient. They stand bottom tier against rival companies.
Business profit on sales tends to be good. It's substantially worse when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain a disappointment compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still worse than most similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain substantially worse when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 3.4

Consolidated Water Co. Ltd. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been well ranked against comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
In the previous years, growth on total net profit has been negative, and substantially worse when measured against peer companies.
Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 10.0

CWCO managed to get a credit on income taxes in the past years, even though it earned money. It's been well ranked against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

Consolidated Water Co. Ltd. usually gets good returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 6.0

CWCO usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands below average when measured against rival firms.
The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came slightly better than competitors.
In recent years, has slightly cut back dividend payments. The company has behaved a disappointment compared to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks worse than most comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks weak when measured against competitors.

Balance Sheet score: 6.2

Consolidated Water Co. Ltd. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be impressive in relation to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is better than most similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks last-in-rank when measured against peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as close to average when compared to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers after a month and a half from the purchase. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's a disappointment compared to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks more than average in relation to comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 6.4

Consolidated Water Co. Ltd. looks very expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains top-notch against peer firms.
In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be almost average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 6.2

Company at a glance: Consolidated Water Co. Ltd. (CWCO)

Sector, industry: Utilities, Utilities—Regulated Water

Market Cap: 0.22 billions

Revenues TTM: 0.08 billions

Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. It uses reverse osmosis technology to produce potable water from seawater. The company produces and supplies water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It also provides design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.