Consolidated Water Co. Ltd. (CWCO) AI Stock Analysis

Consolidated Water Co. Ltd. specializes in the design, construction, management, and operation of water production and treatment facilities across the Cayman Islands, the Bahamas, and the United States. Operating through Retail, Bulk, Services, and Manufacturing segments, the company uses reverse osmosis technology to convert seawater into potable water for residential, commercial, and governmental customers. It also provides engineering, procurement, and project management for desalination plants. Additionally, the company manufactures reverse osmosis equipment, membrane separation systems, filtration devices, piping solutions, and custom fabricated components, while offering maintenance and consultancy services.

Annual revenue expanded from $66.9M in FY2021 to $180.2M in FY2023 before contracting to $134.0M in FY2024 and $132.1M in FY2025, yielding a 5-year revenue CAGR of 12.7% from FY2020 to FY2025. Gross margin reached 36.0% in FY2025, up from 35.2% in FY2021, while operating margin improved from 3.0% to 13.8%. Net income was $18.3M in FY2025 with diluted eps of $1.14, compared to $875,580 in FY2021. In the latest quarter ended June 30, 2026, quarterly revenue growth declined 2.1% year-over-year, while quarterly earnings growth dropped 22.7% year-over-year. Operating margin for the trailing twelve months stood at 11.3%.

As of June 30, 2026, Consolidated Water held $132.6M in cash and short-term investments against total debt of $2.8M, resulting in net cash of $129.8M. Liquidity is supported by a current ratio of 5.95 and a debt-to-equity ratio of 0.01 against shareholders' equity of $225.6M. Operating cash flow reached $41.7M in FY2025, supporting free cash flow of $33.2M. For cash deployment in FY2025, the company allocated $8.5M to capital expenditures, paid $8.0M in dividends, and spent $29,089 on share buybacks.

At a share price of $28.24, the company carries a market capitalization of $452.2M and an enterprise value of $320.0M. Its trailing P/E of 27.7x and forward P/E of 21.0x trade at premiums to the US-listed Utilities peer medians of 20.6x and 17.2x, respectively. The stock trades at an EV to EBITDA multiple of 12.4x versus the peer median of 12.1x, and a price-to-sales multiple of 3.5x compared to the peer median of 2.4x. Over the past 1 year, the stock fell 20.2%, underperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 176.1% exceeded SPY's 83.0%.

Consolidated Water pays an annual forward dividend of $0.56 per share, representing a dividend yield of 1.98% as of October 16, 2026. The company has paid dividends for 31 consecutive years, delivering a 5-year annualized dividend growth rate of 8.0%. In FY2025, dividends paid totaled $8.0M, supported by a payout ratio of 55.3%.

Consolidated Water has 1 Strong Buy rating and no Buy, Hold, or Sell ratings among covering analysts. The mean price target is $43.00, representing a 52.3% upside compared to the last close of $28.24. For the fiscal year ending December 31, 2026, analysts estimate revenue of $127.5M and an EPS of $0.92, reflecting a 20.6% decline. For the next fiscal year, consensus projects revenue of $188.2M and EPS of $1.36. The company beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 9, 2026.

This page is an AI-written research summary of Consolidated Water Co. Ltd. (CWCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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