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CWCO Stock Analysis - Consolidated Water Co. Ltd. AI Rating

CWCO Nasdaq Water Supply E9 CIK: 0000928340
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
78% Confidence

📊 CWCO Key Takeaways

Revenue: $132.1M
Net Margin: 13.9%
Free Cash Flow: $33.2M
Current Ratio: 6.12x
Debt/Equity: 0.00x
EPS: $1.14
AI Rating: BUY with 78% confidence

Investment Thesis

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.

CWCO 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

CWCO 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

Key Metrics to Watch

CWCO Financial Metrics

Revenue
$132.1M
Net Income
$18.3M
EPS (Diluted)
$1.14
Free Cash Flow
$33.2M
Total Assets
$257.6M
Cash Position
$123.8M

💡 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 Profitability Ratios

Gross Margin 36.6%
Operating Margin 13.9%
Net Margin 13.9%
ROE 8.3%
ROA 7.1%
FCF Margin 25.1%

CWCO vs Default Sector

How Consolidated Water Co. Ltd. compares to Default sector averages

Net Margin
CWCO 13.9%
vs
Sector Avg 12.0%
CWCO Sector
ROE
CWCO 8.3%
vs
Sector Avg 15.0%
CWCO Sector
Current Ratio
CWCO 6.1x
vs
Sector Avg 1.8x
CWCO Sector
Debt/Equity
CWCO 0.0x
vs
Sector Avg 0.7x
CWCO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CWCO Balance Sheet & Liquidity

Current Ratio
6.12x
Quick Ratio
5.99x
Debt/Equity
0.00x
Debt/Assets
12.0%
Interest Coverage
548.05x
Long-term Debt
$26.0K

CWCO 5-Year Financial Trend

CWCO 5-year financial data: Year 2021: Revenue $17.5M, Net Income $3.7M, EPS $0.24. Year 2022: Revenue $25.5M, Net Income $875.6K, EPS $0.06. Year 2023: Revenue $109.0M, Net Income $5.9M, EPS $0.38. Year 2024: Revenue $114.6M, Net Income $5.9M, EPS $0.38. Year 2025: Revenue $127.2M, Net Income $29.6M, EPS $1.86.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
25.1%
Free cash flow / Revenue

CWCO Quarterly Performance

Quarterly financial performance data for Consolidated Water Co. Ltd. including revenue, net income, and earnings per share.
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.

CWCO Capital Allocation

Operating Cash Flow
$41.7M
Cash generated from operations
Capital Expenditures
$8.5M
Investment in assets
Dividends Paid
$7.9M
Returned to shareholders

CWCO SEC Filings

Access official SEC EDGAR filings for Consolidated Water Co. Ltd. (CIK: 0000928340)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 8-K cwco-20260316x8k.htm View →
Mar 16, 2026 10-K cwco-20251231x10k.htm View →
Mar 13, 2026 4 xslF345X05/form4-03132026_080301.xml View →
Jan 6, 2026 4 xslF345X05/form4-01062026_040101.xml View →
Jan 6, 2026 4 xslF345X05/form4-01062026_040117.xml View →

Frequently Asked Questions about CWCO

What is the AI rating for CWCO?

Consolidated Water Co. Ltd. (CWCO) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CWCO's 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.

What are the risks of investing in CWCO?

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.

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?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI