California Water Service Group (CWT)
Khrom Capital was up 32.5% gross and 24.5% net for the first quarter, outperforming the Russell 2000's 21.2% gain and the S&P 500's 6.2% increase. The fund has an annualized return of 21.6% gross and 16.5% net since inception. The total gross return since inception is 1,194%. Q1 2021 hedge fund letters, conferences and more Read More
California Water Service Group (NYSE:CWT) was founded in 1926 and is headquartered in San Jose, California. It is the parent company of several water utility companies. The Company provides regulated and non-regulated water utility services to customers in California, New Mexico, and Washington.
The Company’s stock closed at USD 18.57 as of 9th Oct’2012, with a total market capitalization of USD 780.67 million. The stock has witnessed an average volume of 176,883 for the past three years. Over the last year, the stock has traded in a narrow range of USD18.46 to USD 18.69. The stock has been trading at a P/E ratio of 21.16, a P/S ratio of 1.46, and a P/B ratio of 1.72.
United Utilities Group PLC (LON:UU), through its subsidiaries, provides water and wastewater services to people and businesses in the England and Wales. The company’s stock closed at GBP 729 as on 9th Oct’2012 with a P/E ratio of 1,574, a P/S ratio of 312.6 and a P/B ratio of 277.24.
The operating revenue of the Company increased from USD 229.5 million in 6MFY11, to USD 30.8 million representing a YoY increase of 13%. The major contributors to improved revenue performance were increases in usage and rates.
For 6MFY12, operating expenses increased by 17% YoY, and were recorded at USD 234.1 million. The main reason for the increase in operating expenses was a rise of 20% in water production expense, which is the largest component of total operating expenses (representing 39% of total operating expenses in 6MFY12).
For 6MFY12, the diluted net income per share was recorded at USD 0.34 per share, as compared to USD 0.36 per share for 6MFY11. The decrease was mainly due to a non-recurring income tax adjustment, recorded during the first quarter of 2011, which reduced income taxes by $1.6 million.
As of 30th June 2012, the Company had USD 20.8 million in cash; representing a cash value per share of USD 0.5 . The Company also had total debt amounting to USD 574.42 million, resulting in a debt to equity ratio of 127.75. The book value per share stood at USD 10.77 per share.
Factors to watch out for:
* Double Digit growth in Revenues!
* Company’s product is a utility!
* 5 year average dividend yield at 3.1% and a payout ratio of 71%