Consolidated Water Co. Stock Analysis, Valuation (NASDAQ:CWCO)
Investors can watch the Amigobulls Consolidated Water Co. stock analysis video here. This is our analyst opinion covering the buy and sell arguments for CWCO stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Consolidated Water Co. Ltd. Stock Rating 2.7/5
Amigobulls CWCO stock analysis relies on business fundamentals such as Consolidated Water Co. revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Consolidated Water Co. valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Consolidated Water Co. stock rating encapsulates our opinion about the company based on the fundamentals.
Should you sell CWCO stock?
- The company saw an average annual sales decline of -1 in sales over the last 5 years.
- Consolidated Water Co. had an unimpressive average operating margin of 5.04 during the Last Twelve Months (LTM).
- Cash flow from operations is 0.3349 times net income which is a negative signal.
- Trading at a PE ratio of 24.7, CWCO stock is overvalued in comparison to sector average multiple of 19.6.
- The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Utilities sector average multiple of 2.
- Consolidated Water Co. has a low return on equity of 3.6 over the last twelve months.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -14.2.
Amigobulls Consolidated Water Co. stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CWCO stock. Company's fundamentals remain one of the key driver of CWCO stock and helps investors in making good buy and sell decision.
While doing a study of the company financials, Consolidated Water Co. revenue growth and profit or net income are two main metrics which help in identifying whether CWCO stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Consolidated Water Co. stock.