Consolidated Water Co. Ltd. Ordinary Shares (CWCO)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $28 million in annual free cash flow (5.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 12.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($19) with negative 80% margin of safety—limited downside protection

AI Analysis

Consolidated Water Co. Ltd. Ordinary Shares is a micro-cap utilities company valued at $547 million. The business generates $132 million in annual revenue with a 2.2% net margin and $28 million in free cash flow. From a quality standpoint, Consolidated shows Altman Z-Score of 12.1 confirms fortress-level solvency and modest 9% ROE. On valuation, the stock is trading at a premium 29.4x earnings, with trades above its Graham Number with a negative 80% margin. Growth dynamics show revenue growing at 4.4% and profit growth of 100.0%. The 1.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $28 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer