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GWRS Stock Analysis 2026 - Global Water Resources, Inc. AI Rating

GWRS Nasdaq Water Supply DE CIK: 0001434728
Recently Updated • Analysis: Apr 10, 2026 • SEC Data: 2025-12-31
STRONG SELL
85% Conf
Pending
Analysis scheduled

📊 GWRS Key Takeaways

Revenue: $55.8M
Net Margin: 5.3%
Free Cash Flow: $-47.2M
Current Ratio: 0.76x
Debt/Equity: 1.54x
EPS: $0.11
AI Rating: STRONG SELL with 85% confidence

Is GWRS a Good Investment? Thesis Analysis

Claude

Global Water Resources faces critical financial distress marked by a 48.9% YoY collapse in net profitability, a current ratio of 0.76x indicating imminent liquidity risk, and deeply negative free cash flow of -$47.2M. The company's capital-intensive model requires $67.3M in annual CapEx that far exceeds operating cash generation, while interest coverage of only 1.2x signals severe debt service vulnerability.

Why Buy GWRS? Key Strengths

Claude
  • + Positive operating cash flow of $20.2M demonstrates the core business generates cash
  • + Modest 5.8% YoY revenue growth indicates stable demand for regulated water services
  • + Regulated utility sector provides revenue predictability and pricing stability

GWRS Investment Risks to Consider

Claude
  • ! Acute liquidity crisis with current ratio of 0.76x, only $4.1M cash reserves, and interest coverage of 1.2x
  • ! Profitability collapsed 48.9% YoY with negative free cash flow of -$47.2M unsustainable for continued operations
  • ! Capital structure breakdown: CapEx of $67.3M vastly exceeds operating cash flow; high leverage at 1.54x debt/equity limits financial flexibility

Key Metrics to Watch

Claude
  • * Free cash flow trend and CapEx sustainability
  • * Current ratio and absolute cash position
  • * Interest coverage ratio and debt refinancing access
  • * Net income recovery path and operating margin stabilization
  • * Return on equity improvement trajectory

GWRS Financial Metrics

Revenue
$55.8M
Net Income
$3.0M
EPS (Diluted)
$0.11
Free Cash Flow
$-47.2M
Total Assets
$482.9M
Cash Position
$4.1M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

GWRS Profitability Ratios

Gross Margin N/A
Operating Margin 12.8%
Net Margin 5.3%
ROE 3.4%
ROA 0.6%
FCF Margin -84.6%

GWRS vs Default Sector

How Global Water Resources, Inc. compares to Default sector averages

Net Margin
GWRS 5.3%
vs
Sector Avg 12.0%
GWRS Sector
ROE
GWRS 3.4%
vs
Sector Avg 15.0%
GWRS Sector
Current Ratio
GWRS 0.8x
vs
Sector Avg 1.8x
GWRS Sector
Debt/Equity
GWRS 1.5x
vs
Sector Avg 0.7x
GWRS Sector

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

Is GWRS Overvalued or Undervalued?

Based on fundamental analysis, Global Water Resources, Inc. shows some fundamental concerns relative to the Default sector in 2026.

Return on Equity
3.4%
Sector avg: 15%
Net Profit Margin
5.3%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.54x
Sector avg: 0.7x

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.

GWRS Balance Sheet & Liquidity

Current Ratio
0.76x
Quick Ratio
0.76x
Debt/Equity
1.54x
Debt/Assets
73.3%
Interest Coverage
1.20x
Long-term Debt
$133.7M

GWRS 5-Year Financial Trend & Growth Analysis

GWRS 5-year financial data: Year 2021: Revenue $41.9M, Net Income $1.1M, EPS $0.05. Year 2022: Revenue $44.7M, Net Income $3.6M, EPS $0.16. Year 2023: Revenue $53.0M, Net Income $5.5M, EPS $0.24. Year 2024: Revenue $53.0M, Net Income $8.0M, EPS $0.33. Year 2025: Revenue $55.8M, Net Income $5.8M, EPS $0.24.
Revenue
Net Income
EPS (right axis)

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 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
-84.6%
Free cash flow / Revenue

GWRS Quarterly Performance

Quarterly financial performance data for Global Water Resources, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $11.7M $889.0K $0.07

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

GWRS Capital Allocation

Operating Cash Flow
$20.2M
Cash generated from operations
Capital Expenditures
$67.3M
Investment in assets
Dividends Paid
$8.2M
Returned to shareholders

GWRS SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Global Water Resources, Inc. (CIK: 0001434728)

📋 Recent SEC Filings

Date Form Document Action
Apr 2, 2026 4 xslF345X06/wk-form4_1775171611.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775171602.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775171594.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775171588.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775171582.xml View →

Frequently Asked Questions about GWRS

What is the AI rating for GWRS?

Global Water Resources, Inc. (GWRS) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are GWRS's key strengths?

Claude: Positive operating cash flow of $20.2M demonstrates the core business generates cash. Modest 5.8% YoY revenue growth indicates stable demand for regulated water services.

What are the risks of investing in GWRS?

Claude: Acute liquidity crisis with current ratio of 0.76x, only $4.1M cash reserves, and interest coverage of 1.2x. Profitability collapsed 48.9% YoY with negative free cash flow of -$47.2M unsustainable for continued operations.

What is GWRS's revenue and growth?

Global Water Resources, Inc. reported revenue of $55.8M.

Does GWRS pay dividends?

Global Water Resources, Inc. pays dividends, with $8.2M 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 $0.11.

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 April 2026, Global Water Resources, Inc. has a STRONG SELL rating with 85% 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 3.4% (sector avg: 15%), net margin of 5.3% (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 STRONG 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 $20.2M, with capital expenditures of $67.3M. FCF margin is -84.6%.

How does GWRS compare to other Default stocks?

Vs Default sector averages: Net margin 5.3% (avg: 12%), ROE 3.4% (avg: 15%), current ratio 0.76 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) 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: Apr 10, 2026 | Data as of: 2025-12-31 | Powered by Claude AI