California Water Service Group Common Stock (CWT)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach California Water Service Group as a regulated water utility: essential service, about 500,000 connections, and a narrow, regulated moat. In fiscal 2025, the year ended 2025-12-31, revenue was $963.7M and net income was $128.2M, or diluted EPS of $2.15. That was lower profit than fiscal 2024, the year ended 2024-12-31, when net income was $190.8M and diluted EPS $3.25, even though revenue rose from $905.6M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $278.0M and net income $56.5M, or $0.93 diluted EPS, up from $256.2M revenue and $42.2M net income in fiscal Q2 2025, the quarter ended 2025-06-30. So the recent quarter improved, but the longer record is uneven. FairStock calls it a SLOW GROWER, with profit growing 5.8% a year and revenue 6.7% over five years. Returns are modest: ROE 7.68% and ROCE 2.40%, with debt-to-equity 0.93. Free cash flow is negative $235.7M, a -8.3% FCF yield, reflecting heavy capital needs. At $46.14 on 2026-10-13, the P/E is 20.69, P/B 1.58, dividend yield 2.83%, and beta 0.49. The Graham Number is $38.30, leaving a -20.47% margin of safety. Piotroski is strong at 8/9, but Altman Z is 0.66 and FairStock Score 36/100. PEG 0.61 looks reasonable, yet I want a wider discount before calling this a value. A safe yield and essential demand are virtues; regulated returns and cash burn keep me cautious.

In plain English: California Water Service Group provides water utility service to about 500,000 customer connections across California and a few other states. In the quarter ended June 30, 2026, it reported higher revenue and profit than the same quarter a year earlier, and demand for water is usually stable. At $46.14 on October 13, 2026, however, the shares look somewhat expensive relative to the company's profits and accounting value, and the business is spending more cash on its system than it brings in.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer