| 2017 | 2018 | 2019 | 2020 (projected) | Current Ratio | 8.74 | 7.89 | 8.99 | 8.53 | Book Value per Share | 9.93 | 10.36 | 10.9 | 11.28 |
Will Consolidated Water (NASDAQ:CWCO) latest volatility spike continue?
 | By Rifka Kats | Macroaxis Story |
26% of stocks are less volatile than Consolidated, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to outline the risk of investing in Consolidated Water Co. We will evaluate if the latest Consolidated Water price volatility suggests a bounce in September. Consolidated Water's seemingly stabilizing volatility may still impact the value of the stock as we estimate Consolidated Water as currently undervalued. The real value, based on our calculations, is getting close to 13.39 per share.
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Reviewed by Michael Smolkin
Consolidated Water Co currently holds roughly 32.31 M in cash with 11.22 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.14. Volatility is a rate at which the price of Consolidated Water or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Consolidated Water may increase or decrease. In other words, similar to Consolidated's beta indicator, it measures the risk of Consolidated Water and helps estimate the fluctuations that may happen in a short period of time. So if prices of Consolidated Water fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
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. Financial leverage can amplify the potential profits to Consolidated Water's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Consolidated Water's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Consolidated Water's total debt and its cash.
Consolidated Water Gross Profit
Consolidated Water Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Consolidated Water previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Consolidated Water Gross Profit growth over the last 10 years. Please check Consolidated Water's gross profit and other fundamental indicators for more details.
Consolidated Water Volatility Drivers
Consolidated Water unsystematic risk is unique to Consolidated Water and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Consolidated Water you can also buy Via Renewables. You can also mitigate this risk by investing in the utilities sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Consolidated Water important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Consolidated Water income statement and balance sheet. Here are more details about Consolidated volatility.Click cells to compare fundamentals
Is Consolidated Water valued appropriately by the market?
The company reported the previous year's revenue of 72.53 M. Net Income was 8.87 M with profit before overhead, payroll, taxes, and interest of 25.93 M.
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