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/CWCO
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Consolidated Water Co Ltd

Consolidated Water Co Ltd

CWCO
$28.16USD↑+0.43%+0.12 today

MARKET CAP

450.9M

P/E (TTM)

28.3x

FWD P/E

19.6x

DAY RANGE

$28 – $28

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.

  • ↑Q2 revenue $32.9M (–2% YoY) with EPS $0.25 topping estimates by 20%
  • ↑Cash and equivalents of $132.6M, no debt, funds $0.14/share dividend
  • ↓Manufacturing revenue plunged 49% YoY to $2.7M; further declines forecast
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Consolidated Water Co. Ltd. (NASDAQ: CWCO) is a leading company in the water supply and treatment sector, primarily focused on producing and distributing potable water in the Caribbean and Southeast U.S. The company operates in an essential industry that addresses the growing demand for reliable water sources, especially in tourism-driven markets such as Grand Cayman. With a solid reputation for efficiency and innovation in desalination and water infrastructure, CWCO emerges as a pivotal player within the water utility space amidst ongoing challenges related to resource management and environmental sustainability.

Bull says

  • ↑Q2 revenue $32.9M (–2% YoY) with EPS $0.25 topping estimates by 20%
  • ↑Cash and equivalents of $132.6M, no debt, funds $0.14/share dividend
  • ↑Bulk revenue +20% YoY and $10.1M in new municipal contracts secured
  • ↑25-year Grand Cayman license grants long-term regulatory clarity
  • ↑Tourism up 11.3% in H1 2026 boosting retail water demand
  • ↑High earnings yield, reasonable book-to-price and low leverage risk

Bear says

  • ↓Manufacturing revenue plunged 49% YoY to $2.7M; further declines forecast
  • ↓13F ownership low, hedge funds shunning CWCO, driving volatility
  • ↓Intense O&M competition pressures margins and contract renewal
  • ↓Permit delays and potential rate-setting changes threaten project timelines
  • ↓Tourism downturns or rising energy costs could erode margins
  • ↓Negative growth outlook and small-cap size disadvantage vs peers

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 08-17-2025bullish

Transcript signals

Bull points

  • In our press release issued yesterday, we reported revenue of more than 180 million with gross profit of almost 62 million, indicating that revenue was up across all four of our business segments.
  • Our retail water segment benefited from higher numbers of tourist visitors on Grand Cayman compared to 2022, which was lower than historical levels due to the pandemic.
  • Our services segment revenue increased by $69.1 million in 2023, with much of that increase generated by construction of the $81 million water recycling plant for Liberty Utilities in Goodyear, Arizona, which we successfully managed cost on and delivered to the client much faster than expected, resulting in improved gross margins.
Read full transcript analysis ›