Stock Price & Analysis

CWT stock shows a slight decline today with a -1.20% change, suggesting caution. Consider holding or selling if the downtrend continues, but this is a tentative view without more data.

CWT stock is predicted to reach $48 by the end of 2025, driven by strong earnings expectations and stable market conditions. The stock currently trades at $46.88, showing moderate growth potential. Analysts anticipate positive momentum ahead of its Q4 earnings release.

The S1 support level for CWT Stock is $45.72 ,The R1 resistant level for CWT Stock is $48.24.

As of the end of day on 2025-03-24, the price of CWT Stock was $45.76.

The target price for CWT Stock according to analyst rating is 56.67, with the highest price target at 59.00 and the lowest at 54.00. Analysts have a Strong Buy rating on CWT Stock overall.

The market cap of CWT is $2.7B.

Analysis and Insights

Valuation Metrics

California Water Service Group (CWT) currently exhibits elevated valuation metrics compared to industry averages. The price-to-earnings (P/E) ratio stands at 29.52 for Q3 2024 and 13.92 for Q4 2024, indicating a premium relative to peers. Similarly, the EV/EBITDA ratio of 12.97 for Q3 2024 and 10.20 for Q4 2024 suggests a higher valuation compared to the utility sector's norms.

Dividend Yield and Financial Stability

The dividend yield for CWT is 2.03% for Q3 2024 and 2.47% for Q4 2024, providing stable income for investors. However, the stock's price-to-sales (P/S) ratio of 3.07 for Q3 2024 and 2.56 for Q4 2024, along with a price-to-book (P/B) ratio of 1.98 for Q3 2024 and 1.65 for Q4 2024, further supports the case for potential overvaluation.

Recent News and Analyst Sentiment

CWT recently announced a partnership with Walmart to enable bill payments at Walmart locations, enhancing customer convenience. Additionally, the CPUC's decision to maintain the return on equity at 10.27% and postpone cost of capital applications until 2026 has been viewed positively by management, reducing operational complexities.

Analysts at Wells Fargo have also highlighted CWT as a preferred utility stock due to its potential upside compared to peers.

Stock Price and Market Sentiment

CWT's stock closed at $46.88 on March 18, 2025, reflecting a 1.20% decline in regular market hours. The stock has shown volatility, and its current valuation may be pricing in optimistic growth expectations that are yet to materialize.

Conclusion

Based on the elevated valuation metrics, moderate financial performance, and lack of significant growth catalysts, CWT appears overvalued at current levels. Investors may want to exercise caution and consider waiting for a price correction or clearer signs of growth before entering the stock.

California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii and Texas through its subsidiaries. Its business is conducted through its operating subsidiaries and provides utility services. Its business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, and the provision of domestic and municipal fire protection services. It provides wastewater collection and treatment services, including treatment which allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services and promotion of other non-regulated services.

California Water Service Group (CWT) is expected to reach $65-$75 per share by 2030. This prediction is based on the company's stable utility operations and recent acquisition approval by Amex GBT, which may enhance operational efficiencies. The stock's defensive nature in the utilities sector further supports long-term growth.

CWT has a total of 1266 employees.