Last Updated: 16 Sep 2024
Executive Summary
Consolidated Water Co Ltd (CWCO) is a leading provider of water treatment and production services in the Cayman Islands, the Bahamas, and the United States. The company has a strong financial position with a market capitalization of $409 million, and it has consistently delivered positive financial results. CWCO's stock is currently trading at $25.83, and analysts have a strong buy rating on the stock with a target price of $38.
Company Overview
Consolidated Water Co Ltd was founded in 1987 and is headquartered in Grand Cayman, the Cayman Islands. The company designs, builds, manages, and operates water treatment and production plants. CWCO's customers include residential, commercial, and industrial customers. The company has a strong track record of growth and profitability.
Fundamental Analysis
CWCO's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate of 5% over the past five years. CWCO's net income has also grown at a compound annual growth rate of 5% over the past five years. The company's profit margin is 23.3%, and its return on equity is 15.9%. CWCO's balance sheet is also strong. The company has $130 million in cash and equivalents and $120 million in debt. CWCO's debt-to-equity ratio is 0.9, which is a manageable level.
Technical Analysis
CWCO's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 60, which indicates that the stock is overbought. However, the stock's moving average convergence divergence (MACD) is positive, which indicates that the stock is still in a bullish trend.
Short Term Outlook
CWCO's stock is expected to continue to trend higher in the short term. The stock is currently trading above its key moving averages, and the RSI is overbought. However, the MACD is positive, which indicates that the stock is still in a bullish trend. CWCO's stock is expected to reach its analyst target price of $38 in the next 12 months.
Long Term Outlook
CWCO's long-term outlook is also positive. The company is expected to continue to grow its revenue and earnings in the coming years. CWCO is also expected to benefit from the increasing demand for water treatment and production services. The company's stock is expected to continue to trend higher in the long term.
Analyst Recommendations
Analysts have a strong buy rating on CWCO's stock. The stock has a target price of $38, which represents a potential upside of 35% from the current price. Analysts believe that CWCO is a well-managed company with a strong track record of growth and profitability. The company is also expected to benefit from the increasing demand for water treatment and production services.
