CWCO - Consolidated Water: Strong Balance Sheet And Promising Development

2024-05-29 08:26:21 ET

Summary

• Consolidated Water achieved a 91.5% YoY increase in revenue and reached all-time high margins and profitability in FY23.
• The company has a solid balance sheet with net debt of $-43.7m and potential for new strategic acquisitions and a share buyback plan.
• The company's business model faces risks, including the renewal of its water sales license in the retail segment, but its financial strength and growth trends justify a buy rating.

Consolidated Water Co. Ltd. ( CWCO ) is a Cayman Islands-based water utility focused on the production of drinking water through desalination and the treatment of wastewater. The company's main target markets are the Caribbean and the southwest US, regions known for their water scarcity and which can be important long-term growth drivers, as discussed in the Veolia article....

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