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Upturn AI SWOT - About
CWT 
California Water Service Group (CWT)
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Upturn Advisory Summary
07/14/2025: CWT (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
5 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $57
1 Year Target Price $57
| 5 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -9.23% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/14/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.73B USD | Price to earnings Ratio 20.31 | 1Y Target Price 57 |
Price to earnings Ratio 20.31 | 1Y Target Price 57 | ||
Volume (30-day avg) 5 | Beta 0.65 | 52 Weeks Range 41.10 - 55.22 | Updated Date 07/14/2025 |
52 Weeks Range 41.10 - 55.22 | Updated Date 07/14/2025 | ||
Dividends yield (FY) 2.64% | Basic EPS (TTM) 2.26 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.84% | Operating Margin (TTM) 13.82% |
Management Effectiveness
Return on Assets (TTM) 2.59% | Return on Equity (TTM) 8.61% |
Valuation
Trailing PE 20.31 | Forward PE 19.8 | Enterprise Value 4151627426 | Price to Sales(TTM) 2.82 |
Enterprise Value 4151627426 | Price to Sales(TTM) 2.82 | ||
Enterprise Value to Revenue 4.28 | Enterprise Value to EBITDA 11.18 | Shares Outstanding 59570100 | Shares Floating 59024935 |
Shares Outstanding 59570100 | Shares Floating 59024935 | ||
Percent Insiders 0.64 | Percent Institutions 91.12 |
Upturn AI SWOT
California Water Service Group
Company Overview
History and Background
California Water Service Group (CWT) was founded in 1926. It has grown through acquisitions and organic expansion, becoming one of the largest regulated water utilities in the United States. It provides water and wastewater services primarily to California, Washington, New Mexico, and Hawaii.
Core Business Areas
- Water Service: Provision of regulated water utility services, including the collection, treatment, storage, and distribution of water for residential, commercial, industrial, and governmental customers.
- Wastewater Service: Provision of regulated wastewater collection and treatment services.
- Non-Regulated Services: Includes providing services such as water and wastewater system operation and maintenance, meter reading, and billing services to municipalities and private companies.
Leadership and Structure
Martin A. Kropelnicki is the President and CEO. The company has a board of directors overseeing the strategic direction and governance. The organizational structure is divisional, with regional operations managed under the corporate umbrella.
Top Products and Market Share
Key Offerings
- Water Delivery: Provides treated water to residential, commercial, and industrial customers. Market share data is difficult to pinpoint precisely due to the fragmented nature of the water utility industry. Competitors include other regulated water utilities like American Water Works and Aqua America, as well as municipal water departments. They have approximately 1 million customers. Revenue from water delivery is the largest contributor to the company's overall revenue.
- Wastewater Treatment: Collects and treats wastewater to meet regulatory standards. Market share is regional and varies by service area. Competitors in this segment are similar to those in water delivery. Wastewater treatment contributes a smaller, but still significant, portion of overall revenue.
Market Dynamics
Industry Overview
The water utility industry is highly regulated and capital-intensive. Demand for water is relatively stable, but infrastructure requires ongoing investment and maintenance. Regulations are increasingly stringent concerning water quality and environmental protection. Climate change also presents challenges related to water scarcity and drought.
Positioning
California Water Service Group is a well-established player in the regulated water utility space. Its size and geographic diversification provide some competitive advantages. The company focuses on operational efficiency and investing in infrastructure upgrades to maintain water quality and service reliability. Its focus is primarily in the Western United States.
Total Addressable Market (TAM)
The total addressable market for water and wastewater utilities in the US is estimated to be hundreds of billions of dollars annually, considering infrastructure investments and operational expenses. CWT is well positioned to grow within this market through acquisitions and organic growth.
Upturn SWOT Analysis
Strengths
- Stable, regulated revenue stream
- Geographic diversification
- Experienced management team
- Commitment to infrastructure investment
- Strong relationships with regulatory agencies
Weaknesses
- High capital expenditure requirements
- Exposure to regulatory risks
- Dependence on water availability
- Limited growth opportunities outside regulated markets
- Vulnerable to interest rate increases
Opportunities
- Acquisitions of smaller water utilities
- Expansion into new geographic areas
- Investment in water infrastructure projects
- Leveraging technology for operational efficiency
- Increased demand for water reuse and conservation
Threats
- Drought and water scarcity
- Increasing regulatory scrutiny
- Rising operating costs
- Aging infrastructure
- Economic downturns impacting customer demand
Competitors and Market Share
Key Competitors
- AWK
- WTRG
- SJW
Competitive Landscape
CWT competes with other large regulated water utilities, as well as smaller regional players. Its strengths include its geographic diversification and experienced management team. Its weaknesses include its high capital expenditure requirements and exposure to regulatory risks.
Major Acquisitions
New Mexico Water Service
- Year: 2021
- Acquisition Price (USD millions): 75
- Strategic Rationale: Expanded CWT's service area into New Mexico and provided opportunities for operational synergies.
Growth Trajectory and Initiatives
Historical Growth: CWT has grown steadily through acquisitions and organic growth in its existing service areas. Revenue and earnings have increased consistently over the past decade.
Future Projections: Analysts project continued steady growth for CWT, driven by infrastructure investments and rate increases. Revenue growth is expected to be in the low single digits. EPS growth is projected to be slightly higher, reflecting efficiency improvements.
Recent Initiatives: Recent initiatives include investments in infrastructure upgrades, acquisitions of smaller water utilities, and implementation of new technologies to improve operational efficiency.
Summary
California Water Service Group is a stable and consistently growing utility company with a reliable revenue stream due to its regulated operations. The company's diversified geographic presence and commitment to infrastructure investment are key strengths. However, it faces challenges related to regulatory risks, high capital expenditure requirements, and water scarcity issues. CWT should focus on optimizing operational efficiency and pursuing strategic acquisitions to drive future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q), Investor Presentations, Analyst Reports, News Articles, Company Website
Disclaimers:
This analysis is based on publicly available information and should not be considered investment advice. Investment decisions should be made after consulting with a qualified financial advisor. Market share estimates are approximate and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About California Water Service Group
Exchange NYSE | Headquaters San Jose, CA, United States | ||
IPO Launch date 1990-03-26 | Chairman, President & CEO Mr. Martin A. Kropelnicki | ||
Sector Utilities | Industry Utilities - Regulated Water | Full time employees 1278 | Website https://www.calwatergroup.com |
Full time employees 1278 | Website https://www.calwatergroup.com | ||
California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company is involved in the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as for fire protection services. It offers its services to approximately 499,400 customer connections in 100 California communities; approximately 6,700 water and wastewater customer connections on the islands of Kauai, Maui, Oahu, and Hawaii; approximately 38,300 customer connections in the Tacoma, Olympia, Graham, Spanaway, Puyallup, Rainier, Yelm, and Gig Harbor areas; and approximately 11,500 water and wastewater customer connections in Rio Communities, Rio Del Oro, Meadow Lake, Indian Hills, Squaw Valley, Elephant Butte, Morningstar, Sandia Knolls, Juan Tomas, Monterey, and Cypress Gardens systems. The company also engages in the provision of non-regulated water-related services, including operating of municipally owned water systems, privately owned water, and recycled water distribution systems; water system operation, meter reading, and billing services to private companies and municipalities; leasing of communication antenna sites on its properties; and billing of optional third-party insurance programs to its residential customers. In addition, it provides wastewater collection and treatment services. California Water Service Group was founded in 1926 and is headquartered in San Jose, California.
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