(CWT) California Water Service - Ratings and Ratios

California Water Service Group (NYSE:CWT) is a leading water utility company providing essential water and wastewater services across multiple regions in the United States. Headquartered in San Jose, California, the company has been in operation since 1926, serving approximately 499,400 customer connections in 100 California communities. Beyond California, it operates in Washington, New Mexico, Hawaii, and Texas, with specific service areas including 6,700 connections across the Hawaiian islands and 38,300 connections in the Tacoma-Olympia area of Washington. Additionally, it serves 11,500 connections in Rio Communities and surrounding systems in New Mexico. The companys operations encompass the entire water supply chain, including production, storage, treatment, distribution, and sale of water for domestic, industrial, public, and irrigation purposes, as well as fire protection.

California Water Service Group also offers non-regulated water-related services, including the operation of municipally owned water systems, privately owned water systems, and recycled water distribution systems. It provides water system operations, meter reading, and billing services to private companies and municipalities. Other services include leasing communication antenna sites on its properties and offering optional third-party insurance programs to residential customers. The company also provides wastewater collection and treatment services, further diversifying its operations in the water utility sector. Its comprehensive service portfolio is designed to meet the growing demands of water management and conservation in the regions it serves.

From a technical perspective, CWTs stock has shown stability with an average 20-day volume of 399,919 shares and a last price of $49.55. The stock is trading slightly above its 20-day SMA of $49.49 but remains above its 50-day SMA of $47.66, indicating a bullish short-term trend. The 200-day SMA of $49.35 suggests long-term stability, with the stock oscillating around this level. The ATR of 1.27 reflects moderate volatility, indicating that price movements are relatively contained. Over the next three months, if the stock maintains its current trajectory, it could test resistance levels near $52, given its proximity to the 50-day SMA and historical price patterns.

Fundamentally, California Water Service Group has a market capitalization of $3.007 billion, positioning it as a mid-sized player in the water utilities sector. The trailing P/E ratio of 15.54 indicates a reasonable valuation relative to its earnings, while the forward P/E of 21.79 suggests expectations of future growth. The P/B ratio of 1.84 reflects a modest premium to book value, aligning with the stability of utility stocks. The P/S ratio of 2.90 is in line with industry averages, indicating efficient revenue generation. The return on equity (RoE) of 11.65% highlights the companys ability to generate profits from shareholder equity. Over the next quarter, investors may focus on the companys ability to maintain its dividend payout while investing in infrastructure upgrades and water conservation initiatives, which could positively impact future earnings.