California Water Service Group (CWT) AI Stock Analysis

California Water Service Group delivers essential water utility and ancillary services across California, Washington, New Mexico, Hawaii, and Texas. Founded in 1926, the company manages the complete water cycle, including production, purchase, storage, treatment, testing, and distribution for domestic, industrial, public, and irrigation uses. It serves approximately 494,500 customer connections in California, 36,400 in Washington, 8,600 in New Mexico, and 6,200 connections in Hawaii. Non-regulated operations include managing municipal and private water networks, billing, meter reading, antenna site leasing, laboratory services, and third-party insurance programs.

Between FY2020 and FY2025, revenue expanded at a compound annual growth rate of 4.7%. Revenue rose 30.5% in FY2024 to $1.04B, supported by an operating margin of 21.7% and net income of $190.8M, before declining 3.5% in FY2025 to $1.00B with net income of $128.2M. Over this span, gross margin fluctuated from 45.7% in FY2023 to 95.4% in FY2024, settling at 64.3% in FY2025. In the latest quarter ended June 30, 2026, revenue increased 16.5% year-over-year, while quarterly earnings grew 31.4%. Trailing twelve-month revenue reached $1.05B with diluted earnings per share of $2.23.

As of June 30, 2026, California Water Service Group held $43.4M in cash and short-term investments against $1.68B in total debt, resulting in net debt of $1.63B and a debt-to-equity ratio of 0.93. The current ratio stood at 0.70. Operating cash flow totaled $302.6M in FY2025, but capital expenditures of $517.0M resulted in free cash flow of -$214.4M. Cash deployment in FY2025 included $73.9M in dividends paid and $1.4M in share buybacks, while share count grew 13.7% over the past 5 years.

At $46.35 per share, California Water Service Group has a market capitalization of $2.87B and an enterprise value of $4.48B. The stock trades at a trailing price-to-earnings multiple of 20.8x and a forward multiple of 17.5x, slightly above the median of its US-listed Utilities peers of 20.6x and 17.2x, respectively. Its enterprise value-to-EBITDA ratio is 12.2x compared to the peer median of 12.1x. Over the past 1 year, the stock fell 1.5%, trailing the S&P 500 return of 16.8%, and its 5-year return of -15.2% compares to 83.0% for the index.

The company pays a quarterly dividend with an annualized forward payout of $1.34 per share, offering a dividend yield of 2.89%. California Water Service Group has paid dividends for 42 consecutive years, delivering a 5-year annualized dividend growth rate of 7.1%. The dividend payout ratio stands at 58.8%, and the last ex-dividend date was August 10, 2026.

Wall Street coverage consists of 3 Strong Buy ratings, 0 Buy ratings, and 1 Hold rating. The mean price target is $53.75, representing upside of 16.0% above the last closing price of $46.35. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $1.09B and EPS of $2.61, indicating 21.2% earnings growth. Over the last 4 quarters, the company beat earnings estimates 2 times. The next earnings date is October 29, 2026.

This page is an AI-written research summary of California Water Service Group (CWT). 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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