California Water Service Group Reinvests at Reduced Rates of Return

November 22, 2023

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Recently, the company announced its plans to reinvest at reduced rates of return in order to better protect its shareholders and customers from potentially volatile markets. Cal Water seeks to make investments that will provide long-term stability and financial security for its shareholders, customers, and communities. The company has made significant investments in infrastructure improvements and renewable energy sources in recent years, and has worked to ensure the highest quality water standards are met. By reinvesting at reduced rates of return, Cal Water is able to limit potential losses and also help ensure availability of clean, affordable water. In addition to reinvesting at reduced rates of return, Cal Water is also committed to promoting water conservation measures in its service areas.

The company offers a number of programs, such as rebates for water-saving appliances and assistance with reducing water waste, which have helped to reduce overall water usage in many of the communities it serves. Overall, the California Water Service ($NYSE:CWT) Group has implemented a plan of reinvestment at reduced rates of return in order to safeguard the interests of its shareholders and customers. By investing in long-term projects and infrastructure improvements, Cal Water is helping to ensure reliable access to clean, affordable drinking water in California.

Price History

On Monday, CALIFORNIA WATER SERVICE Group (CWSA) stock opened at $51.3 and closed at $50.4, down by 2.1% from its last closing price of $51.4. CWSA is currently in the process of assessing the impact that this decision will have on its business operations. The reduced rate of return means that the company will receive fewer returns on its investments and this could have a negative effect on its financial performance. Nevertheless, the company remains committed to providing quality water services to its customers and will continue to monitor the situation. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for CWT. More…

    Total Revenues Net Income Net Margin
    781.06 41.35 4.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for CWT. More…

    Operations Investing Financing
    187.44 -386.74 154.91
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    4.04k 2.63k 24.44
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for CWT are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -0.0% -23.5% 11.7%
    FCF Margin ROE ROA
    -24.6% 4.1% 1.4%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    GoodWhale has conducted an analysis of CALIFORNIA WATER SERVICE’s financials, using the Star Chart to assess the company from a range of different angles. We found that CALIFORNIA WATER SERVICE is strong in asset, dividend, and medium in profitability and weak in growth. Based on this, we classified the company as a ‘cow’, a type of company with the track record of paying out consistent and sustainable dividends. In terms of investor interest, CALIFORNIA WATER SERVICE has an intermediate health score of 4/10 considering its cashflows and debt, which makes it likely to sustain future operations in times of crisis. This makes it an ideal investment opportunity for investors who are looking for reliable and long-term returns. Value investors may also find CALIFORNIA WATER SERVICE attractive, as the company has a strong asset base and a steady dividend yield. More…

  • Star Chart Analysis
  • Valuation Analysis

  • 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.


    California Water Service Group has recently shifted its investment strategy to focus on lower returns. This is a measured approach that is designed to create stability while minimizing risk. The company is primarily focusing on bonds and other fixed-income securities, which are low risk investments but also have lower returns.

    In addition, the company is considering investments in other areas such as stocks, real estate, and alternative investments. These investments may have higher potential returns, but also come with higher risks. By diversifying its investments, California Water Service Group is able to maintain a balanced approach, minimizing risk while maximizing return. Ultimately, this strategy seeks to produce long-term growth for the company and its investors.

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