Consolidated Story

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CWCO -- USA Stock  

USD 11.30  0.07  0.62%

Consolidated Water is scheduled to announce its earnings tomorrow. The next fiscal quarter end is expected on the 30th of September 2020. Consolidated Water Asset Turnover is quite stable at the moment as compared to the past year. The company's current value of Asset Turnover is estimated at 0.41. Book Value per Share is expected to rise to 11.28 this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to about 18.7 M. As many baby boomers are still indifferent towards utilities space, it makes sense to outline Consolidated Water Co as a unique choice for millenniums. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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Will Consolidated (NASDAQ:CWCO) continue to grow in September?
Consolidated Water currently holds 4.13 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest Consolidated Water is not taking enough advantage from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Consolidated Water has an asset utilization ratio of 44.89 percent. This suggests that the company is making $0.45 for each dollar of assets. An increasing asset utilization means that Consolidated Water Co is more efficient with each dollar of assets it utilizes for everyday operations.
Consolidated Water financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Consolidated Water, including all of Consolidated Water's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Consolidated Water assets, the company is considered highly leveraged. Understanding the composition and structure of overall Consolidated Water debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Consolidated Total Debt

Consolidated Water liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Consolidated Water has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Consolidated Water balance sheet include debt obligations and money owed to different Consolidated Water vendors, workers, and loan providers. Below is the chart of Consolidated main long-term debt accounts currently reported on its balance sheet.
You can use Consolidated Water Co financial leverage analysis tool to get a better grip on understanding its financial position

How important is Consolidated Water's Liquidity

Consolidated Water financial leverage refers to using borrowed capital as a funding source to finance Consolidated Water Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Consolidated Water financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Consolidated Water's total debt and its cash.

Acquisition by Redding Todd of 165 shares of Consolidated Water subject to Rule 16b-3

Legal trades by Consolidated Water insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Consolidated insider trading alert for grant of redeemable preferred stock by Redding Todd, VP OF PURCHASING AND LOGISTICS, on 10th of September 2020. This event was filed by Consolidated Water Co Ltd with SEC on 2020-09-10. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Consolidated

Consolidated Water price slide over the last few months could raise concerns from institutional investors as the firm closed today at a share price of 12.36 on very low momentum in volume. The company executives were not very successful in positioning the firm resources to exploit market volatility in July. However, diversifying your holdings with Consolidated Water Co or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.08. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Consolidated Water partners.

Asset Breakdown

120.1 M
Assets Non Current
75.8 M
Current Assets
Total Assets195.91 Million
Current Assets75.81 Million
Assets Non Current120.1 Million
Goodwill19.81 Million

Some Consolidated technical indicators suggest relapse

Latest jensen alpha indicator falls down to -0.43. Possible price upswing? Consolidated Water Co exhibits very low volatility with skewness of -1.9 and kurtosis of 10.85. However, we advise investors to further study Consolidated Water Co technical indicators to make sure all market info is available and is reliable.

Our Final Perspective on Consolidated Water

Whereas other companies in the utilities?regulated water industry are either recovering or due for a correction, Consolidated Water may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Consolidated as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Consolidated Water.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Consolidated Water Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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