📊 CWT Key Takeaways
Investment Thesis
California Water Service Group demonstrates solid operational profitability with a 17.7% operating margin and strong free cash flow generation (31.4% FCF margin), supported by 6.4% revenue growth. However, financial leverage concerns and deteriorating shareholder metrics—particularly the 33.8% diluted EPS decline despite flat net income—warrant a cautious stance until profitability quality and equity returns improve.
CWT Strengths
- Robust operating margin of 17.7% indicating efficient core operations
- Strong free cash flow of $302.6M (31.4% margin) provides capital flexibility for dividend support and infrastructure investment
- Steady revenue growth of 6.4% YoY in a regulated utility with predictable demand
- Healthy interest coverage ratio of 10.8x demonstrates manageable debt service obligations
- Significant insider buying activity (38 Form 4 filings in 90 days) suggests management confidence
CWT Risks
- Weak liquidity position with current ratio of 0.85x below the 1.0x safety threshold raises refinancing concerns
- Elevated leverage with debt-to-equity of 0.87x and $1.5B long-term debt limits financial flexibility
- Diluted EPS collapsed 33.8% despite flat net income, indicating significant share dilution from financing activities
- Low ROE of 7.6% and ROA of 2.3% suggest poor capital efficiency relative to equity base
- Cash position of only $51.8M against $5.7B assets is minimal for a capital-intensive utility with substantial CapEx needs
Key Metrics to Watch
- Trend in diluted EPS and share dilution sources to assess shareholder value creation
- Current ratio movement toward 1.0x+ to confirm liquidity stability
- Debt-to-equity trajectory and refinancing costs given elevated leverage
- Capital expenditure levels and financing structure to evaluate infrastructure investment sustainability
- Return on equity progression toward industry benchmarks (typically 10-12% for utilities)
CWT Financial Metrics
💡 AI Analyst Insight
The 31.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CWT Profitability Ratios
CWT vs Default Sector
How CALIFORNIA WATER SERVICE GROUP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CWT Balance Sheet & Liquidity
CWT 5-Year Financial Trend
5-Year Trend Summary: CALIFORNIA WATER SERVICE GROUP's revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.91 reflects profitable operations.
CWT Growth Metrics (YoY)
CWT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $306.2M | $60.7M | $1.03 |
| Q2 2025 | $226.7M | $40.6M | $0.70 |
| Q1 2025 | $154.9M | $13.3M | $0.22 |
| Q3 2024 | $253.3M | $21.8M | $0.38 |
| Q2 2024 | $194.2M | $9.6M | $0.17 |
| Q1 2024 | $145.2M | -$22.2M | $-0.40 |
| Q3 2023 | $238.3M | $21.8M | $0.38 |
| Q2 2023 | $194.2M | $9.6M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CWT Capital Allocation
CWT SEC Filings
Access official SEC EDGAR filings for CALIFORNIA WATER SERVICE GROUP (CIK: 0001035201)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CWT
What is the AI rating for CWT?
CALIFORNIA WATER SERVICE GROUP (CWT) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWT's key strengths?
Robust operating margin of 17.7% indicating efficient core operations. Strong free cash flow of $302.6M (31.4% margin) provides capital flexibility for dividend support and infrastructure investment.
What are the risks of investing in CWT?
Weak liquidity position with current ratio of 0.85x below the 1.0x safety threshold raises refinancing concerns. Elevated leverage with debt-to-equity of 0.87x and $1.5B long-term debt limits financial flexibility.
What is CWT's revenue and growth?
CALIFORNIA WATER SERVICE GROUP reported revenue of $963.7M.
Does CWT pay dividends?
CALIFORNIA WATER SERVICE GROUP pays dividends, with $73.9M distributed to shareholders in the trailing twelve months.
Where can I find CWT SEC filings?
Official SEC filings for CALIFORNIA WATER SERVICE GROUP (CIK: 0001035201) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWT's EPS?
CALIFORNIA WATER SERVICE GROUP has a diluted EPS of $2.15.
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.