Lumida
/CWT
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California Water Service Group

California Water Service Group

CWT
$51.88USD↑+1.05%+0.54 today

MARKET CAP

3.1B

P/E (TTM)

25.9x

FWD P/E

19.2x

DAY RANGE

$51 – $52

52W RANGE

$41
$52

AI Summary

Stalk
StalkMedium

CWT remains in a Stage 2 advancing regime with clear higher highs and higher lows, underpinned by a bullish Parabola pattern. Medium- and long-term biases are bullish, supported by rising moving averages and structural momentum, but price is currently extended above EMAs and in extreme overbought territory. Given the Stable strategy’s preference for controlled engagement and the vulnerability inherent in steep parabolic moves, it is prudent to defer execution until a consolidation or pullback into rising support areas.

  • ↑Q1 capex rose 17%; 2026 infrastructure spend guided at $627M
  • ↑Nexus Water acquisition adds up to 100,000 Texas connections
  • ↓Q1 net income fell to $4M ($0.07/share) vs. $13.3M ($0.22/share) prior year
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

California Water Service Group (NYSE: CWT) is a leading provider of water utility services primarily serving California, with additional operations in Nevada, Texas, and New Mexico. The company plays a crucial role in the utilities sector, focusing on delivering safe and reliable water services while investing heavily in infrastructure enhancements to comply with strict regulatory standards, particularly concerning emerging contaminants like PFAS. California Water Service Group is strongly positioned within the ongoing discussions around climate change and sustainable water management, leveraging its operational strengths to adapt to evolving consumer demands and regulatory frameworks.

Bull says

  • ↑Q1 capex rose 17%; 2026 infrastructure spend guided at $627M
  • ↑Nexus Water acquisition adds up to 100,000 Texas connections
  • ↑Quarterly dividend set at $0.335; 327th consecutive payout
  • ↑Post-2024 rate case approval could boost revenue by ~$91M in 2026
  • ↑PFAS cost recoveries total $66.5M, easing compliance outlays
  • ↑Factor profile shows strong quality metrics and reliable dividend yield

Bear says

  • ↓Q1 net income fell to $4M ($0.07/share) vs. $13.3M ($0.22/share) prior year
  • ↓Rate-case delay postpones booking of approved tariff increases
  • ↓Elevated depreciation and interest expenses weigh on profit margins
  • ↓P/E sits at 25x despite shrinking EPS growth outlook
  • ↓High leverage raises sensitivity to rising interest rates
  • ↓Factor profile flags weak profitability and negative growth signals

Investment themes with CWT

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-02-2026neutral

Transcript signals

Bull points

  • The revised proposed decision provides clear visibility into revenue growth, including approximately $91 million in 2026, followed by $43 million in 2027, and $49 million in 2028.
  • Overall, we view the revised proposed decision as constructive and supportive of continued infrastructure investment and long-term earning stability.
  • In Q1 of 2026, revenue was $214.6 million compared to $204 million in the first quarter of 2025.

Bear points

  • Net income for the quarter was $4 million, or 7 cents per diluted share, compared to the prior year first quarter of $13.3 million, or 22 cents per diluted share.
  • The revenue increases were partially offset by an overall decrease in consumption for the quarter, increased depreciation and interest expense related to new capital investments, and an increase in the effective income tax rate due to a reduction in tax credits, which, when combined with other items, reduced EPS by about 32 cents per diluted share.
  • Net income for the quarter was $4 million, or 7 cents per diluted share, compared to the prior year first quarter of $13.3 million, or 22 cents per diluted share.
Read full transcript analysis ›