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1. Company Snapshot

1.a. Company Description

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona.As of December 31, 2020, it served approximately 74,048 people in approximately 27,630 homes.The company was founded in 2003 and is based in Phoenix, Arizona.

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1.b. Last Insights on GWRS

Negative drivers behind Global Water Resources, Inc.'s recent performance include a Q4 earnings miss, with the company reporting $0.04 per share, below the estimated $0.06 per share. This marks a decline from the same period last year, when earnings were $0.07 per share. Although the company continues to add new customers, its revenue growth was not enough to offset the earnings miss.

1.c. Company Highlights

2. Global Water Resources' Q2 2025 Earnings: Steady Revenue Growth Amidst Rising Expenses

Global Water Resources reported a 5.4% increase in revenue for the second quarter of 2025, reaching $14.2 million, driven by a 3.8% rise in active service connections, increased consumption, and higher rates. However, operating expenses increased 8.5% to $11.6 million, resulting in a net income of $1.6 million or $0.06 per diluted share, compared to $1.7 million or $0.07 per diluted share in the same period last year. Adjusted EBITDA was $6.9 million, a 2.1% increase from the previous year. The actual EPS of $0.06 met analysts' estimates.

Publication Date: Sep -02

📋 Highlights
  • Revenue Growth:: Increased 5.4% to $14.2 million in Q2 2025, driven by 3.8% more active service connections, higher consumption, and rate hikes.
  • Operating Expenses:: Rose 8.5% to $11.6 million due to higher depreciation, personnel costs, and administrative expenses.
  • Net Income Decline:: Fell to $1.6 million ($0.06/share) from $1.7 million ($0.07/share) in Q2 2024, with EBITDA up 2.1% to $6.9 million.
  • Acquisition Impact:: Acquired 7 Tucson water systems for 1.05x rate base, adding 2,200 connections and $7.7 million in rate base, expected to boost earnings.
  • Rate Case Progress:: Pursuing rate cases in Santa Cruz and Palo Verde (decision by October 1), with a $1.1 million annualized rate increase already approved for Farmers Water utility.

Operational Highlights and Growth Prospects

The company recently closed the acquisition of 7 public water systems in Tucson, Arizona, for a multiple of 1.05x rate base, adding approximately 2,200 connections and $7.7 million in rate base. This acquisition is expected to be immediately accretive to earnings. Global Water is also actively pursuing rate cases for its Santa Cruz and Palo Verde utilities, with a recommendation expected by October 1st. Despite a 14% decrease in single-family dwelling unit permits in Q2 2025, the company remains optimistic about future growth driven by strong population growth in its service areas.

Valuation and Financial Metrics

With a P/E Ratio of 47.71, P/B Ratio of 3.46, and P/S Ratio of 4.9, the stock appears to be fairly valued. The EV/EBITDA ratio of 9.6 suggests a reasonable valuation relative to its earnings before interest, taxes, depreciation, and amortization. The company's ROE of 8.9% and ROIC of 1.55% indicate a decent return on equity and invested capital, respectively. The Dividend Yield of 3.13% is attractive for income-seeking investors.

Outlook and Expectations

Analysts estimate next year's revenue growth at 6.7%, indicating a positive outlook for the company's top-line performance. With its recent acquisition and ongoing rate cases, Global Water Resources is poised for continued growth and potentially higher earnings in the future.

3. NewsRoom

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Global Water Resources (GWRS) to Release Quarterly Earnings on Thursday

Nov -06

Source: defenseworld.net

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Global Water Resources Declares Monthly Dividend

Oct -31

Source: globenewswire.com

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Global Water Resources Sets Third Quarter 2025 Conference Call for Thursday, November 13, 2025 at 1:00 p.m. ET

Oct -22

Source: globenewswire.com

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Here's Why You Should Add GWRS Stock to Your Portfolio Right Now

Oct -08

Source: zacks.com

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Global Water Resources (GWRS) Soars 5.2%: Is Further Upside Left in the Stock?

Oct -08

Source: zacks.com

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Global Water Resources Declares Monthly Dividend

Sep -30

Source: globenewswire.com

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Global Water Resources to Present at Janney Virtual Water Utilities Conference, September 17, 2025

Sep -04

Source: globenewswire.com

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Global Water Resources Declares Monthly Dividend

Aug -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Wastewater and Recycled Water Services

Expected Growth: 8.1%

Growing demand for water conservation, increasing adoption of recycled water for non-potable purposes, and stringent regulations on wastewater discharge drive the growth of the wastewater and recycled water services market.

Water Services

Expected Growth: 7.1%

Growing demand for water conservation, increasing adoption of water recycling and reuse, and stringent regulations driving investment in water infrastructure are expected to drive the growth of the global water services market.

Unregulated Revenues

Expected Growth: 7.2%

Growing demand for water and wastewater services in unregulated areas, driven by population growth, urbanization, and increasing water scarcity, is expected to drive revenue growth for Global Water Resources, Inc.

7. Detailed Products

Water Conservation

Global Water Resources, Inc. offers water conservation services that help reduce water waste and optimize water usage for its customers.

Water Recycling

The company provides water recycling services that treat and reuse water for non-potable purposes, reducing the demand on potable water supplies.

Water Efficiency Solutions

Global Water Resources, Inc. offers water efficiency solutions that help customers optimize their water usage and reduce waste.

Water Infrastructure Management

The company provides water infrastructure management services that help maintain and optimize water distribution systems.

Water Metering and Billing

Global Water Resources, Inc. offers water metering and billing services that help customers track and manage their water usage.

8. Global Water Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Global Water Resources, Inc. because the company's water supply and treatment services are essential for its customers, making it difficult for them to find alternative solutions.

Bargaining Power Of Customers

The bargaining power of customers is medium for Global Water Resources, Inc. because while customers have some flexibility to choose from different water supply and treatment service providers, the company's strong reputation and quality of service limit their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Global Water Resources, Inc. because the company has a diverse supplier base and is not heavily dependent on a single supplier, giving it more negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Global Water Resources, Inc. because the water supply and treatment services industry is attractive and has relatively low barriers to entry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is medium for Global Water Resources, Inc. because while there are several competitors in the market, the company's strong brand reputation and quality of service help it to differentiate itself and maintain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.97%
Debt Cost 6.06%
Equity Weight 31.03%
Equity Cost 8.83%
WACC 6.92%
Leverage 222.31%

11. Quality Control: Global Water Resources, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Aris Water Solutions

A-Score: 6.0/10

Value: 6.0

Growth: 8.6

Quality: 4.7

Yield: 5.0

Momentum: 8.5

Volatility: 3.3

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Artesian Resources

A-Score: 5.7/10

Value: 6.2

Growth: 4.7

Quality: 5.3

Yield: 7.0

Momentum: 2.0

Volatility: 9.3

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SJW

A-Score: 5.5/10

Value: 6.4

Growth: 5.6

Quality: 6.9

Yield: 4.0

Momentum: 3.5

Volatility: 6.7

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Pure Cycle

A-Score: 5.0/10

Value: 2.9

Growth: 6.3

Quality: 8.2

Yield: 0.0

Momentum: 5.5

Volatility: 7.3

1-Year Total Return ->

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Middlesex Water

A-Score: 4.9/10

Value: 3.7

Growth: 5.7

Quality: 6.4

Yield: 4.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Global Water Resources

A-Score: 4.9/10

Value: 4.0

Growth: 4.8

Quality: 6.6

Yield: 4.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.07$

Current Price

10.07$

Potential

-0.00%

Expected Cash-Flows