A stable dividend-paying water utility company with strong cash flow generation and significant retained earnings reserves supporting its infrastructure operations in the US and Mexico.
Investors may favor this stock for its defensive utility characteristics, consistent profitability despite recent revenue volatility, and low debt levels relative to total equity. The strong operating cash flow supports a history of dividend payments and provides a cushion against economic downturns or regulatory uncertainties.
The sharp decline in 2024 revenue following the peak in 2023 raises concerns about business model sustainability or potential divestitures that could alter future growth prospects. With retained earnings deficit of $106.9M and limited recent growth, the company lacks the expansion catalysts found in emerging market water utilities.
Consolidated Water Co. Ltd. is a diversified water utility enterprise operating across North America and Latin America, providing essential water supply, wastewater treatment, and sanitation services to residential, commercial, and industrial customers.
Despite a revenue contraction from $180.2M in 2023 to $134.0M in 2024, the company maintained robust profitability with net profit stabilizing near $28.8M, while cash flow from operations remained healthy at $36.5M. The significant drop in revenue suggests a cyclical adjustment or specific market exit, yet the firm preserved liquidity with cash and equivalents of $99.4M.
The global water utility industry is characterized by essential service demand, regulated pricing structures, and high barriers to entry due to licensing requirements and infrastructure needs. Consolidated Water operates in a sector where profitability is often driven by regulatory approval mechanisms rather than pure price competition.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $94.1M | $180.2M | $134.0M |
| Cost of Revenue | $63.7M | $118.3M | $88.3M |
| Gross Profit | $30.4M | $61.9M | $45.6M |
| Operating Expenses | $21.1M | $24.8M | $27.3M |
| Operating Income | $9.3M | $37.2M | $18.3M |
| G&A | $21.1M | $24.8M | $27.5M |
| Stock-Based Comp | $1.4M | $1.9M | $1.4M |
| D&A | $6.2M | $6.6M | $6.7M |
| Depreciation | $5.4M | $5.8M | $5.9M |
| Amortization | $582.8K | $574.1K | $656.4K |
| Other OpEx | $12.7K | $7.1K | $-197.8K |
| Non-Operating Income | $464.8K | $828.3K | $2.4M |
| Interest Expense | $46.5K | $145.3K | — |
| Interest Income | $447.2K | $696.4K | $2.1M |
| Pre-Tax Income | $9.7M | $38.0M | $20.7M |
| Income Tax | $396.7K | $6.8M | $2.2M |
| Continuing Ops | $9.3M | $31.2M | $18.5M |
| Discontinued Ops | $-2.4M | $-1.1M | $10.4M |
| Net Income | $7.0M | $30.2M | $28.8M |
| Minority Interest | $1.1M | $0 | $0 |
| Net to Common | $5.9M | $30.2M | $28.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $92.6M | $112.7M | $157.8M |
| Cash & Equivalents | $50.7M | $42.6M | $99.4M |
| Accounts Receivable | $27.0M | $38.2M | $39.6M |
| Inventory | $5.7M | $6.0M | $9.0M |
| Prepaid Expenses | $5.6M | $4.1M | $5.2M |
| Other Current Assets | $3.4M | $21.8M | $4.7M |
| Long-Term Assets | $100.4M | $105.7M | $85.5M |
| PP&E (Net) | $52.5M | $55.9M | $52.4M |
| Intangibles | $2.8M | $3.4M | $2.7M |
| Goodwill | $10.4M | $12.9M | $12.9M |
| Operating Leases | $2.1M | $2.1M | $3.2M |
| Other LT Assets | $31.1M | $30.1M | $12.8M |
| Total Assets | $193.0M | $218.4M | $243.3M |
| Current Liabilities | $22.7M | $23.9M | $24.9M |
| Accounts Payable | — | $0 | — |
| Current Debt | $115.0K | $192.0K | $126.3K |
| Current Leases | $546.9K | $456.9K | $634.9K |
| Deferred Revenue | $8.8M | $6.2M | $9.1M |
| Other Current Liab | $11.8M | $15.4M | $13.3M |
| Long-Term Liabilities | $2.6M | $2.7M | $3.1M |
| Long-Term Debt | $216.1K | $191.2K | $70.3K |
| LT Operating Leases | $1.6M | $1.8M | $2.6M |
| Other LT Liab | $779.4K | $683.8K | $363.9K |
| Total Liabilities | $25.2M | $26.6M | $28.0M |
| Shareholders' Equity | $167.8M | $191.8M | $215.3M |
| Paid-In Capital | $89.2M | $92.2M | $93.6M |
| Retained Earnings | $61.2M | $85.1M | $106.9M |
| Total L&E | $193.0M | $218.4M | $243.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $7.0M | $30.2M | $28.8M |
| Non-Cash Adjustments | $7.9M | $-34.8M | $1.8M |
| Working Capital Changes | $6.5M | $12.6M | $5.9M |
| Cash from Operations | $21.3M | $8.0M | $36.5M |
| Capital Expenditures | $7.5M | $5.0M | $6.7M |
| Cash from Investing | $-5.0M | $-10.9M | $27.0M |
| Debt Repayments | $72.1K | $135.5K | $186.6K |
| Dividends Paid | $5.1M | $5.5M | $6.3M |
| Cash from Financing | $-6.3M | $-5.5M | $-6.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $10.0M | $-8.4M | $56.8M |
| Beginning Cash | $40.4M | $50.7M | $42.6M |
| Ending Cash | $50.7M | $42.6M | $99.4M |
The company's revenue is derived primarily from regulated water distribution and sewage collection tariffs in North American markets, supplemented by wastewater treatment services and industrial water supply contracts that provide recurring operating income.
Regulatory rate-setting delays could impact cash flow timing, exposure to extreme weather events affecting water source availability, inflation-driven increases in energy and material costs impacting operating margins, and potential political instability in Latin American markets where the company operates.
Consolidated Water benefits from long-term regulatory franchises that guarantee steady revenue streams, low capital expenditure intensity relative to peers due to mature infrastructure, and a strong balance sheet with minimal debt enabling consistent dividend payments.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.