Global Water Resources Achieves Financial Success Despite Unfavorable Valuation

January 4, 2024

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Global Water Resources ($NASDAQ:GWRS) (GWR) is an international company that specializes in providing access to clean, safe water and wastewater services to communities and businesses. Despite having a strong financial performance and expanding profit margins, GWR has an unfavorable valuation in the stock market. This is due to the fact that the company’s focus on conservation-based water management often means investments don’t generate immediate returns, which makes it difficult for investors to accurately value GWR’s stock. Despite its unfavorable valuation, GWR has achieved financial success due to its ability to secure strategic partnerships and long-term contracts with government agencies and businesses. This allows GWR to be reimbursed for its investments, and provides a steady stream of revenue from long-term partners.

In addition, GWR’s innovative water management solutions have been recognized by governments across the world, giving them access to additional grants and funding opportunities. These strategic partnerships and innovative solutions have allowed GWR to grow its profit margins and achieve financial success despite its unfavorable valuation.

Share Price

On Wednesday, GLOBAL WATER RESOURCES defied expectations, achieving financial success despite unfavorable valuations. The stock opened at $13.0 and closed at $13.1, up by 1.5% from the previous closing price of $12.9. This increase in stock value was an unexpected result, proving that GLOBAL WATER RESOURCES is still a viable and profitable company despite its poor initial valuation. It is a testament to the success of the company in the face of difficult market conditions and serves as a reminder that strong business models can overcome even the most unfavorable valuations. 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 GWRS. More…

    Total Revenues Net Income Net Margin
    51.76 7.66 13.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

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

    Operations Investing Financing
    26.26 -33.58 -1.6
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for GWRS. More…

    Total Assets Total Liabilities Book Value Per Share
    358.45 309.37 2.03
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

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

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    11.3% 17.2% 28.3%
    FCF Margin ROE ROA
    -1.9% 18.9% 2.6%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    GoodWhale has evaluated the wellbeing of GLOBAL WATER RESOURCES and has given it an intermediate health score of 6/10. This score is based on the company’s cash flows and debt, which suggests that it might be able to sustain future operations in times of crisis. Furthermore, GoodWhale has classified GLOBAL WATER RESOURCES as a ‘gorilla’, meaning that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes GLOBAL WATER RESOURCES an attractive option for dividend-focused investors who are seeking long-term growth and stability. It also makes it suitable for investors with a high risk appetite who are looking for a relatively safe bet with high potential returns. Additionally, due to its weak asset position, the company also appeals to investors who are looking for a relatively low-risk option. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The company’s competitors include Vidler Water Resources Inc, Premium Water Holdings Inc, Torrington Water Co Inc.

    – Vidler Water Resources Inc ($TSE:2588)

    Water Holdings Inc is a publicly traded holding company with a focus on the water industry. The company’s subsidiaries include water treatment, desalination, wastewater treatment, and water distribution businesses. The company’s mission is to provide clean, safe, and affordable water to its customers. The company’s products and services are used by municipalities, businesses, and industries around the world. Water Holdings Inc is headquartered in Los Angeles, California.

    Summary

    Global Water Resources (GWR) has been showing strong financial performance with increasing profit margins in recent quarters. Despite these positive results, GWR’s stock price has been relatively stagnant and undervalued when compared to its peers. This has created an interesting investing opportunity for those willing to take the risk and buy into the stock at current levels.

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