California Water Service

CWT

Regulated Water · Utilities

Price

$49.55

-0.47 (-0.94%)

Market Cap

$3.06B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Good

Stability

Good

Valuation

Good

Dividends

Good

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Share count rising — dilution

+15.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 51.6M (2021) → 59.6M (2025)

Winston Score History

The full picture

California Water Service Group is one of the largest investor-owned water utilities in the United States. It collects, treats, and delivers clean drinking water to homes, businesses, and municipalities — mainly across California, with smaller operations in Washington, New Mexico, and Hawaii. The company owns and operates the pipes, pumps, and treatment facilities that bring water to roughly 2 million people.

The company makes money by charging customers for the water they use, under rates approved by state regulators. Because it operates as a regulated utility, it has a predictable revenue stream, but regulators control how much profit it can earn — which keeps returns modest, as the low ROIC suggests. The main growth driver is getting regulators to approve rate increases to cover rising infrastructure costs, but the main risk is California's ongoing water scarcity and drought conditions, which can reduce water usage and pressure the company's ability to reliably serve customers long-term.

Politician Trades

4 trades / 12mo

1 Congressional buy and 3 sells on CWT in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+16.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+32.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~2 months

$43M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

California Water Service has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

-20.6%

Thin — -20.6% gross margin

Profit after running costs

Operating Margin

23.0%

Excellent — 23.0% operating margin

Return on the money invested

ROCE

5.7%

Weak — 5.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+6.4%

Slow sales growth (+6.4% YoY)

Profit growth

EPS YoY

-2.7%

Earnings shrinking (-2.7% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

246%

Turns 246% of profit into real cash

Spare cash per sale

FCF Margin

-20.7%

Burning cash (-20.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.72

Moderate — manageable debt (0.72)

Covers its interest

Interest Cover

2.37x

Tight — interest eats into profit (2.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

22.2x

Growth-priced — P/E 22.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+4.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.2 → 18.2)

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Dividends

Dividend

Dividend Yield

2.53%

Moderate income — 2.53% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+7.0%

Dividend growing modestly (7.0% YoY)

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