CWT Stock Fair Value Calculation – Institutions’ Influence Over California Water Service Group Grows in 2023 with 84% Share Ownership.
March 29, 2023
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The California Water Service ($NYSE:CWT) Group has seen a dramatic increase in institutional ownership over the past year, with investors owning an astounding 84% of the company’s shares. This means that institutions have a tremendous amount of influence over the company’s stock and how it performs. This trend is expected to continue in the coming years, as institutional ownership is projected to remain high in 2023. This trend of institutional ownership is contributing to the California Water Service Group’s stock price appreciation, as well as stability in both their dividend and earnings. Institutions are providing long-term support for this company, with the majority of the stock being held by major financial firms, hedge funds, and mutual funds.
With so much institutional ownership, it is clear that these organizations have an immense amount of power over the company’s operations and strategies. The high level of institutional ownership also indicates that California Water Service Group is a reliable and trustworthy investment option. Investors have faith in the company’s ability to perform, which is why they have continued to purchase the stock over the past few years. It is likely that this trend will persist in 2023 and beyond, with institutional investors continuing to invest in this utility giant.
Stock Price
On Monday, the CALIFORNIA WATER SERVICE Group’s stock opened at $57.2 and closed at $56.9, a slight 0.4% increase from its previous closing price of 56.7. At the time of writing, sentiment surrounding the company is largely positive in anticipation of its ownership share reaching 84% in 2023. This growth will give the institution more control over the CALIFORNIA WATER SERVICE Group and potentially lead to more favorable outcomes for investors and stakeholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CWT. More…
| Total Revenues | Net Income | Net Margin |
| 846.43 | 96.01 | 10.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWT. More…
| Operations | Investing | Financing |
| 243.77 | -335.52 | 96.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CWT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.85k | 2.53k | 23.7 |
Key Ratios Snapshot
Some of the financial key ratios for CWT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.8% | 4.6% | 17.2% |
| FCF Margin | ROE | ROA |
| -9.9% | 7.0% | 2.4% |
Analysis – CWT Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of CALIFORNIA WATER SERVICE’s health. After careful consideration of their financials, our proprietary Valuation Line came to the conclusion that the fair value of CALIFORNIA WATER SERVICE share is approximately $55.4. Currently, however, the stock is traded at $56.9- overvalued by 2.8%. This presents an opportunity for potential buyers to purchase CALIFORNIA WATER SERVICE stock at a slightly higher than fair market price. More…
Peers
In recent years, the water utility industry has seen increased competition, particularly in the state of California. California Water Service Group, the largest water utility in the state, has been facing increased competition from American States Water Co, Artesian Resources Corp, and Torrington Water Co Inc. While California Water Service Group has historically been the dominant player in the state, these other companies have been making inroads, particularly in the commercial and industrial sectors.
– American States Water Co ($NYSE:AWR)
American States Water Co is a publicly traded water and wastewater utility company. Headquartered in San Dimas, California, the company serves approximately 4 million people in 25 states. American States Water Co. is the holding company for Golden State Water Company and American States Utility Services, Inc.
The company’s ROE of 12.01% is slightly below the industry average of 12.36%. However, its market cap of 2.99B is well above the industry average of 1.79B. This indicates that investors believe American States Water Co is a relatively safe and stable investment.
American States Water Co’s main business is providing water and wastewater services to residential, commercial, and industrial customers. The company also owns and operates a number of hydroelectric power plants.
– Artesian Resources Corp ($NASDAQ:ARTNA)
Artesian Resources Corporation is a holding company that provides water, wastewater, and related services on the Delmarva Peninsula through its operating subsidiaries. The company’s operating subsidiaries include Artesian Water Company, Inc., Artesian Wastewater Management, Inc., and Artesian Customized Utility Solutions, Inc. Artesian Resources has a market cap of 474.4M as of 2022 and a Return on Equity of 10.87%. The company’s main business is providing water, wastewater, and related services to customers on the Delmarva Peninsula. Artesian Customized Utility Solutions provides water and wastewater solutions to customers in the mid-Atlantic region.
Summary
Investors are increasingly seeing California Water Service (CAL) as a great opportunity for growth in 2023. According to recent figures, institutions have grown their share ownership of CAL to 84%, indicating a strong position in the stock. As of now, the news sentiment surrounding this investment is mostly positive. Analysts have noted that the company’s long-term outlook is strong due to its well-diversified market and long-term contracts.
With CAL showing strong free cash flow and a strong balance sheet, investors have reason to be bullish. It has also seen a steady increase in its dividends over the past several years, providing investors with a consistent return. With such a positive outlook and increasing institutional ownership, CAL looks to be an attractive option for investors looking for long-term growth.
