📊 GWRS Key Takeaways
Is Global Water Resources, Inc. (GWRS) a Good Investment?
Global Water Resources exhibits severe financial distress with negative profitability (-2.8% net margin), critical liquidity constraints (0.68x current ratio with only $1.8M cash), and inadequate debt servicing capacity (0.2x interest coverage). The company is burning free cash flow (-1.8M) while carrying $129.7M in long-term debt against a shrinking equity base, creating an unsustainable capital structure.
Revenue is growing modestly, but earnings have deteriorated sharply with low margins and very weak returns. Heavy capital spending and leverage have driven deeply negative free cash flow, sub-1x liquidity, and interest coverage near 1x. Until cash generation improves and leverage risk eases, fundamentals remain challenged.
Why Buy Global Water Resources, Inc. Stock? GWRS Key Strengths
- Modest revenue growth of 5.8% YoY in essential utility sector
- Positive operating cash flow of $4.5M demonstrates some underlying business activity
- Total assets of $485.1M provide asset base for potential restructuring
- Modest revenue growth (+5.8% YoY)
- Positive operating income and margin (12.8%)
- Solid operating cash flow generation ($20.17M)
GWRS Stock Risks: Global Water Resources, Inc. Investment Risks
- Interest coverage ratio of 0.2x indicates inability to service debt obligations; existential refinancing risk
- Current ratio of 0.68x with minimal $1.8M cash reserves signals acute liquidity crisis and covenant violation risk
- Negative free cash flow of -$1.8M and deteriorating net income (-48.9% YoY) despite revenue growth indicates operational unraveling
- Debt-to-equity ratio of 1.54x with declining profitability creates high probability of default or dilutive restructuring
- Capital intensity (CapEx $6.3M vs FCF -$1.8M) unsustainable without debt refinancing
- Deeply negative free cash flow from high capex
- Weak liquidity (current/quick 0.76x; low cash)
- Tight interest coverage (1.2x) with elevated leverage (1.54x D/E)
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.0x to avoid default
- Free cash flow trajectory and cash balance depletion rate
- Debt refinancing activities and covenant compliance status
- Operating margin trend and customer base stability
- Free Cash Flow
- Interest Coverage
Global Water Resources, Inc. (GWRS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GWRS Profit Margin, ROE & Profitability Analysis
GWRS vs Utilities Sector: How Global Water Resources, Inc. Compares
How Global Water Resources, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Global Water Resources, Inc. Stock Overvalued? GWRS Valuation Analysis 2026
Based on fundamental analysis, Global Water Resources, Inc. shows some fundamental concerns 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.
Global Water Resources, Inc. Balance Sheet: GWRS Debt, Cash & Liquidity
GWRS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Global Water Resources, Inc.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.24 reflects profitable operations.
GWRS Revenue Growth, EPS Growth & YoY Performance
GWRS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $12.5M | -$366.0K | $-0.01 |
| Q3 2025 | $14.3M | $591.0K | $0.06 |
| Q2 2025 | $13.5M | $591.0K | $0.06 |
| Q1 2025 | $11.6M | $591.0K | $0.02 |
| Q3 2024 | $14.3M | $691.0K | $0.11 |
| Q2 2024 | $13.0M | $691.0K | $0.07 |
| Q1 2024 | $11.6M | $691.0K | $0.03 |
| Q3 2023 | $11.9M | $889.0K | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Global Water Resources, Inc. Dividends, Buybacks & Capital Allocation
GWRS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Global Water Resources, Inc. (CIK: 0001434728)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779488899.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779487731.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779487688.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779487642.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779487594.xml | View → |
❓ Frequently Asked Questions about GWRS
What is the AI rating for GWRS?
Global Water Resources, Inc. (GWRS) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GWRS's key strengths?
Claude: Modest revenue growth of 5.8% YoY in essential utility sector. Positive operating cash flow of $4.5M demonstrates some underlying business activity. ChatGPT: Modest revenue growth (+5.8% YoY). Positive operating income and margin (12.8%).
What are the risks of investing in GWRS?
Claude: Interest coverage ratio of 0.2x indicates inability to service debt obligations; existential refinancing risk. Current ratio of 0.68x with minimal $1.8M cash reserves signals acute liquidity crisis and covenant violation risk. ChatGPT: Deeply negative free cash flow from high capex. Weak liquidity (current/quick 0.76x; low cash).
What is GWRS's revenue and growth?
Global Water Resources, Inc. reported revenue of $13.3M.
Does GWRS pay dividends?
Global Water Resources, Inc. pays dividends, with $2.2M distributed to shareholders in the trailing twelve months.
Where can I find GWRS SEC filings?
Official SEC filings for Global Water Resources, Inc. (CIK: 0001434728) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GWRS's EPS?
Global Water Resources, Inc. has a diluted EPS of $-0.01.
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 GWRS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Global Water Resources, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GWRS stock overvalued or undervalued?
Valuation metrics for GWRS: ROE of -0.4% (sector avg: 10%), net margin of -2.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GWRS stock in 2026?
Our dual AI analysis gives Global Water Resources, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GWRS's free cash flow?
Global Water Resources, Inc.'s operating cash flow is $4.5M, with capital expenditures of $6.3M. FCF margin is -13.6%.
How does GWRS compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -2.8% (avg: 12%), ROE -0.4% (avg: 10%), current ratio 0.68 (avg: 0.8).
Is Global Water Resources, Inc. carrying too much debt?
GWRS has a debt-to-equity ratio of 1.54x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.