Last Updated: 18 Sep 2024
Executive Summary
Global Water Resources Inc. (GWRS) is a water resources management company that primarily operates in the Phoenix, Arizona metropolitan area. The company has a market capitalization of $317.7 million and trades on the NASDAQ exchange. GWRS has a strong financial position with an EBITDA of $21.57 million and a profit margin of 11.9%. The company's stock price is currently trading at $13.05, below its 52-week high of $13.30.
Company Overview
GWRS owns, operates, and manages regulated water, wastewater, and recycled water services. The company's water system serves over 1 million people in the Phoenix metropolitan area. GWRS also provides wastewater treatment services to over 500,000 people in the same area. The company's recycled water system provides irrigation water to over 100,000 acres of land.
Fundamental Analysis
GWRS has a strong financial position with an EBITDA of $21.57 million and a profit margin of 11.9%. The company's revenue has grown by an average of 3.9% over the past five years. GWRS has a strong balance sheet with $100.6 million in cash and equivalents and $224.4 million in total debt. The company's debt-to-equity ratio is 0.66, which is below the industry average of 1.00.
Technical Analysis
GWRS's stock price is currently trading below its 52-week high of $13.30. The stock has been in a downtrend since reaching its high in April 2023. The stock's 50-day moving average is $12.48, and its 200-day moving average is $12.51. The stock's relative strength index (RSI) is 45.70, which indicates that the stock is oversold.
Short Term Outlook
GWRS's stock price is expected to remain in a downtrend in the short term. The stock's technical indicators are bearish, and the company's earnings are expected to decline in the next quarter.
Long Term Outlook
GWRS's long-term outlook is positive. The company's water resources are essential to the Phoenix metropolitan area, and the company's financial position is strong. The company's stock price is expected to recover in the long term as the company's earnings grow.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on GWRS's stock. The average analyst target price is $16.80, which represents a potential upside of 28.8% from the current price.
