(GWRS) Global Water Resources - Ratings and Ratios

Global Water Resources, Inc. is a water resource management company that specializes in operating and managing regulated water, wastewater, and recycled water systems in Arizona, primarily serving metropolitan Phoenix and Tucson. With a customer base of approximately 111,000 people across 36,000 homes, the company has established a significant presence in the region. Founded in 2003 and headquartered in Phoenix, Arizona, Global Water Resources has been providing essential water management services for nearly two decades.

The companys business model is centered around providing regulated water and wastewater services, which are typically characterized by stable and predictable cash flows. As a water utility company, GWRS is likely to benefit from the growing demand for water infrastructure and the increasing need for efficient water management practices. With a strong presence in Arizona, the company is well-positioned to capitalize on the states growing population and economic development.

From a technical analysis perspective, GWRSs stock price has been trending within a relatively narrow range, with the 20-day SMA at $10.32 and the 50-day SMA at $10.58. The stocks current price of $10.41 is slightly above the 20-day SMA, indicating a potential bullish trend. However, the 200-day SMA at $11.74 suggests that the stock is still below its longer-term trend. The ATR of 3.12% indicates moderate volatility, and the stocks 52-week range of $9.75 to $13.33 suggests that it has the potential for further upside.

Using a combination of technical and fundamental data, a forecast for GWRS can be developed. With a P/E ratio of 43.38 and a forward P/E of 51.28, the companys stock is trading at a premium to its earnings. However, the companys RoE of 12.08% suggests that it is generating strong returns on equity. Assuming that the company continues to grow its earnings and maintains its current valuation multiples, a potential price target for GWRS could be $12.50, representing a 20% upside from current levels. This forecast is based on the companys strong fundamentals, including its stable business model and growing demand for its services, as well as its technical trend, which suggests potential for further upside.

To achieve this price target, GWRS will need to continue to execute on its business plan, investing in its water infrastructure and expanding its customer base. The companys ability to maintain its current valuation multiples will depend on its ability to deliver strong earnings growth and maintain its return on equity. With a market capitalization of $286.26M, GWRS has a relatively small cap profile, which could make it more susceptible to market volatility. However, for investors looking for a company with a strong track record and a compelling growth story, GWRS may be worth considering.