Lumida
/CWCO
⌘K
Consolidated Water Co Ltd

Consolidated Water Co Ltd

CWCO
$29.17USD↓-1.32%-0.39 today

MARKET CAP

466.7M

P/E (TTM)

27.3x

FWD P/E

19.5x

DAY RANGE

$29 – $30

52W RANGE

$28
$39

AI Summary

Stalk
Sell NowHigh

CWCO remains in a medium-term downtrend under Stage 4, confirmed by sequential lower highs and lower lows and price trading below the 9, 20, and 50 EMAs. The pattern implication of sustained supply dominance reinforces bearish bias, and no mean reversion is permitted. In the short term, the rally into the convergence of the 9/20 EMAs offers a tactical sell entry at intermediate resistance. The long-term uptrend is intact but does not override the current medium-term decline.

  • ↑Earnings yield of 0.7393 indicates potential undervaluation in water utilities
  • ↑Cash reserves of $126.3M support $8.6M planned 2026 capex
  • ↓Q1 2026 revenue declined 11% YoY to $30M due to weather and manufacturing issues
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Consolidated Water Company (NASDAQ: CWCO) is a leading provider of water supply and treatment services, specializing in seawater desalination and water treatment in the Caribbean and the United States. The company operates through various segments, including retail water operations, bulk water sales, and manufacturing of water treatment systems. Positioned strategically within the growing water management market, CWCO is well-equipped to capitalize on increasing demands driven by tourism and infrastructural needs in both local and municipal markets.

Bull says

  • ↑Earnings yield of 0.7393 indicates potential undervaluation in water utilities
  • ↑Cash reserves of $126.3M support $8.6M planned 2026 capex
  • ↑O&M revenues rose 15% YoY to $8.9M, showing contract strength
  • ↑Grand Cayman tourism up 11.1% boosts retail water demand
  • ↑Pipeline of Florida and Hawaii desalination projects could drive revenue
  • ↑Dividend of $0.14/share underscores shareholder return and liquidity

Bear says

  • ↓Q1 2026 revenue declined 11% YoY to $30M due to weather and manufacturing issues
  • ↓Growth and revisions factors are negative, reflecting analyst downgrades
  • ↓Permitting delays in Hawaii desalination project may defer revenue recognition
  • ↓High forward P/E of 30.8× vs peers’ 20.5× raises valuation concerns
  • ↓Accounts receivable climbed to $23.9M, highlighting cash flow risk
  • ↓Weak momentum and profitability factors plus high short interest heighten downside

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-23-2026neutral

Transcript signals

Bull points

  • $786,000 in our retail segment,
  • Our retail revenue was up $786,000 due to a 13% increase in the volume of water sold.
  • Our recurring revenue generated under our O&M contracts totaled $7.7 million in the first quarter of 2025, an increase of 9% over the previous year.

Bear points

  • Our revenue was down 15% from the first quarter of 2024 to $33.7 million.
  • the decrease in services segment revenue was due to plant construction revenue decreasing from $9.2 million in the first quarter of 24 to $2.2 million in the first quarter of this year.
  • Our services segment revenue and operating income declined in the first quarter of 2025 compared to the year earlier due to completion of two major design-build projects in the second quarter of last year.
Read full transcript analysis ›