California Water Service Group
- Open
- 48.74
- Day high
- 49.73
- Day low
- 48.56
- Prev close
- 48.65
- Volume
- 256K
- Mkt cap
- $2.9B
- P/E (TTM)
- 24.5
- EPS (TTM)
- $2.00
- P/B
- 1.6
- P/S
- 2.9
- Yield
- 2.60%
- Per share
- $1.27
- ▼Insiders net selling -$209K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions mixed (13F)
California Water Service Group (CWT) is a Utilities company listed on NYSE. The stock is up 5% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
California Water Service Group (CWT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CWT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.25 | $0.07 | -72.0% | $215M | +2.0% |
| Feb 26, 2026 | $0.36 | $0.19 | -47.2% | $220M | -8.0% |
| Oct 30, 2025 | $1.20 | $1.03 | -14.2% | $311M | +32.1% |
| Jul 31, 2025 | $0.46 | $0.71 | +54.3% | $265M | -19.1% |
| May 1, 2025 | $0.16 | $0.22 | +37.5% | $204M | -15.6% |
| Feb 27, 2025 | $0.38 | $0.33 | -13.2% | $222M | +2.7% |
| Oct 31, 2024 | $1.05 | $1.03 | -1.9% | $300M | +29.7% |
| Aug 1, 2024 | $0.42 | $0.70 | +66.7% | $244M | +13.0% |
| Apr 25, 2024 | $0.50 | $1.21 | +142.0% | $271M | +47.3% |
| Feb 29, 2024 | $1.24 | $0.52 | -58.1% | $215M | -21.6% |
| Oct 26, 2023 | $0.74 | $0.60 | -18.9% | $255M | -11.2% |
| Jul 27, 2023 | $0.55 | $0.17 | -69.1% | $194M | -16.9% |
CWT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 8, 2026 | Mortensen Michelle Rofficer: VP Corp Sect, Gov & Assurance | Tax | 74 | $45.24 |
| Jun 8, 2026 | Luu Michael Bofficer: SVP Corp Svce & Chief Risk Of | Tax | 70 | $45.24 |
| Jun 8, 2026 | Luu Michael Bofficer: SVP Corp Svce & Chief Risk Of | Tax | 69 | $45.82 |
| Jun 8, 2026 | Mortensen Michelle Rofficer: VP Corp Sect, Gov & Assurance | Tax | 73 | $45.82 |
| Jun 8, 2026 | Milleman Greg Aofficer: VP Rates & Regulatory Affairs | Tax | 67 | $45.24 |
| Jun 8, 2026 | Ouyang Elissa Yofficer: VP Facilities Fleet Procure IT | Tax | 67 | $45.24 |
| Jun 8, 2026 | James Sophie Marwiehofficer: VP Water Qual | Tax | 50 | $45.82 |
| Jun 8, 2026 | KROPELNICKI MARTIN Aofficer: Chairman President & CEO | Tax | 493 | $45.82 |
| Jun 8, 2026 | Milleman Greg Aofficer: VP Rates & Regulatory Affairs | Tax | 66 | $45.82 |
| Jun 8, 2026 | Scanlon Thomas Aofficer: VP, Corporate Controller & PAO | Tax | 30 | $45.24 |
| Jun 8, 2026 | Bunting Shawn Cofficer: Sr. VP, GC and Business Dev | Tax | 70 | $45.24 |
| Jun 8, 2026 | KROPELNICKI MARTIN Aofficer: Chairman President & CEO | Tax | 504 | $45.24 |
| Jun 8, 2026 | Dean Shannon Cofficer: SR. VP, Cust Svc & Chief Sust | Tax | 73 | $45.82 |
| Jun 8, 2026 | Ouyang Elissa Yofficer: VP Facilities Fleet Procure IT | Tax | 66 | $45.82 |
| Jun 8, 2026 | James Sophie Marwiehofficer: VP Water Qual | Tax | 51 | $45.24 |
Source: CWT SEC Form 4 filings, latest Jun 8, 2026. For informational purposes only — not investment advice.
See the full CWT insider & 13F page →California Water Service Group company profile
Overview
California Water Service Group (NYSE:CWT) is a regulated water utility company founded in 1926 and headquartered in San Jose, California. The company has grown from a small California water provider into a multi-state utility serving approximately 545,700 customer connections across California, Washington, New Mexico, Hawaii, and Texas. CWT operates as the parent company of California Water Service Company and several other subsidiaries, providing essential water and wastewater services to communities throughout the western United States. The company went public in 1990 and has maintained a consistent dividend payment record for over 320 consecutive quarters, reflecting its stable utility business model.
Business
California Water Service Group operates in the regulated water utility industry, which involves the collection, treatment, storage, and distribution of potable water to residential, commercial, industrial, and municipal customers. Unlike competitive industries, water utilities operate as natural monopolies under strict regulatory oversight, with rates and service standards set by state public utility commissions. The company's core business segments include: 1. Regulated Water Operations (Primary Revenue Driver): This represents approximately 95% of total revenue and involves providing water utility services to customers across five states. The company operates water treatment facilities, maintains extensive pipeline networks, and ensures compliance with federal and state water quality standards. In California alone, CWT serves 100 communities with about 494,500 customer connections. 2. Regulated Wastewater Services: The company provides wastewater collection and treatment services, particularly in Hawaii (serving Maui and Hawaii islands) and expanding operations in Texas. This segment involves collecting, treating, and disposing of wastewater in compliance with environmental regulations. 3. Non-Regulated Services (Approximately 5% of revenue): This includes operating municipally-owned water systems under contract, providing meter reading and billing services to third parties, leasing communication antenna sites on company properties to telecommunications companies, and offering laboratory testing services. The company also facilitates optional third-party insurance programs for residential customers. The water utility industry is characterized by significant capital intensity, requiring continuous investment in infrastructure maintenance, replacement, and expansion. Water utilities must comply with increasingly stringent environmental regulations, including new standards for PFAS (Per- and polyfluoroalkyl substances) treatment, which are synthetic chemicals that have raised health concerns and require specialized treatment technologies.
Revenue model
California Water Service Group operates under a regulated utility business model, where revenue and profitability are determined through rate-setting proceedings with state public utility commissions rather than competitive market forces. The company makes money primarily through regulated water and wastewater rates charged to customers based on usage and fixed service charges. The rate-setting process works through General Rate Cases (GRC) filed every three to four years, where the company proposes rate increases to recover operating expenses, capital investments, and earn an authorized return on equity (currently 10.27%). Between rate cases, the company can file for specific cost recovery through advice letters and escalation mechanisms. Revenue is generated through volumetric charges (based on water consumption) and fixed monthly service charges. Key factors that increase profitability margins include: 1. Capital Investment Recovery: The company earns its authorized return on all approved capital investments added to the rate base, creating an incentive for infrastructure improvements and expansion. 2. Regulatory Lag Benefits: When actual costs come in below projected levels used in rate setting, the company retains the difference until the next rate case. 3. Customer Growth: Adding new connections through acquisitions or organic growth increases revenue without proportional increases in fixed costs. 4. Operational Efficiency Improvements: Cost management and operational improvements flow directly to the bottom line between rate cases. Factors that can pressure margins include: 1. Regulatory Lag: In the third year of rate case cycles, inflation and rising costs can outpace authorized rate increases, compressing margins. 2. Drought and Conservation: Reduced water consumption during drought periods decreases volumetric revenue, though the company has some protection through drought memorandum accounts. 3. Environmental Compliance Costs: New regulations like PFAS treatment requirements (estimated at $226 million) create significant capital and operating cost pressures. 4. Interest Rate Environment: Higher interest rates increase financing costs for capital-intensive operations, though these are typically recovered through rate adjustments. The company's customer base consists primarily of residential users (approximately 85% of connections), with the remainder being commercial, industrial, and municipal customers. Payment is mandatory as water service is essential, providing highly predictable cash flows.
Competitive moat
California Water Service Group operates with a strong regulatory moat characteristic of natural monopoly utilities. The company's competitive advantages stem from several structural factors: Regulatory Barriers to Entry: Water utilities require extensive regulatory approval to operate, including certificates of public convenience and necessity. New entrants face significant hurdles in obtaining rights to serve existing territories, as regulators typically grant exclusive service areas to prevent duplicative infrastructure. Infrastructure Moat: The company has invested over $5.2 billion in water infrastructure including treatment facilities, storage reservoirs, and distribution networks. This represents decades of capital accumulation that would be prohibitively expensive for competitors to replicate. The extensive pipeline networks create natural barriers as customers cannot easily switch to alternative providers. Regulatory Relationship and Expertise: CWT has developed deep expertise in navigating complex regulatory processes across multiple states, maintaining relationships with utility commissions, and successfully managing rate case proceedings. This institutional knowledge provides advantages in securing favorable regulatory outcomes. Essential Service Nature: Water service is non-discretionary and has extremely inelastic demand, providing stable cash flows regardless of economic conditions. Customers cannot substitute away from the service or significantly reduce consumption. However, the moat faces some limitations: Regulatory Risk: While regulation provides protection, it also constrains pricing power and profitability. Adverse regulatory decisions can significantly impact returns, as seen with the delayed 2021 General Rate Case that pressured earnings. Political and Environmental Pressures: Increasing focus on water affordability, environmental compliance (particularly PFAS treatment), and climate change adaptation creates ongoing regulatory and cost pressures. Municipal Competition: Some municipalities may seek to acquire private water systems or develop their own utilities, though this requires significant capital and expertise. Technology Disruption: While limited, advances in water treatment, recycling, and alternative supply sources could potentially alter the competitive landscape over the long term. Overall, CWT operates with a moderately strong moat that provides reliable cash flows and barriers to competition, though regulatory dependency creates some vulnerability to political and policy changes.
Risks & safety
California Water Service Group presents a moderate margin of safety with some financial constraints typical of capital-intensive utilities. • Liquidity and Solvency: Current ratio of 0.53 indicates tight short-term liquidity, though this is common for utilities with predictable cash flows. The company maintains $50.1 million in unrestricted cash plus $395 million in available credit facilities. Debt-to-equity ratio of 0.84 is reasonable for a utility, though elevated compared to some peers. • Cash Flow Dynamics: Operating cash flow of $291 million in 2024 is healthy, but free cash flow of negative $180 million reflects heavy capital investment program ($471 million in 2024). This negative free cash flow is typical during major infrastructure upgrade cycles but creates financing dependency. • Valuation Metrics: Trading at 13.9x trailing earnings and 9.4x EBITDA, which appears reasonable for a regulated utility. Price-to-book ratio of 1.62 suggests modest premium to asset value. Graham number of $45.25 compared to current price around $45-50 indicates fair valuation. • Regulatory Support: S&P maintains A+ stable rating, reflecting strong regulatory framework and essential service nature. Authorized 10.27% return on equity provides reasonable profitability framework. • Key Risks: Significant upcoming capital requirements for PFAS compliance ($226 million estimated) and general infrastructure needs ($1.6 billion proposed 2025-2027) create financing pressures. Regulatory lag in third year of rate cycles can pressure earnings. Climate change and drought conditions add operational complexity.
Recent development
Over the past several years, California Water Service Group has undergone significant strategic developments focused on infrastructure modernization, geographic expansion, and regulatory compliance. The company completed its delayed 2021 General Rate Case in 2024, which had created earnings pressure due to regulatory lag but ultimately resulted in substantial rate increases and revenue recovery. Major Capital Investment Program: CWT has embarked on an unprecedented infrastructure investment cycle, with capital spending reaching a record $471 million in 2024 (23% increase from 2023). The company has proposed an additional $1.6 billion investment program for 2025-2027, driving projected rate base growth of 11.7% compounded annually. This represents a strategic shift toward proactive infrastructure replacement and system reliability improvements. PFAS Compliance Initiative: The company is preparing for new federal PFAS (forever chemicals) treatment requirements, with an estimated $226 million investment to treat approximately 101 wells across its service territories. This represents a major regulatory compliance initiative that will require specialized treatment technology and significant rate recovery. Geographic Expansion Strategy: CWT has pursued strategic expansion, particularly in Texas where it has entered the wastewater services market and plans to expand into water services by 2026 through public-private partnerships in the South Austin market. The company has also completed several small acquisitions, adding over 36,000 customer connections since 2019. ESG and Climate Adaptation: The company has committed to reducing greenhouse gas emissions by 63% by 2035 and increasing recycled water to 5% of total supply. CWT has invested in renewable energy solutions and enhanced drought response capabilities, including advanced emergency preparedness programs. Regulatory Strategy Evolution: The company has refined its approach to rate case filings, focusing on risk-based capital programs and rate design that benefits lower-income customers. CWT has also developed more sophisticated regulatory recovery mechanisms, including drought memorandum accounts and infrastructure improvement surcharges.
CWT company profile · for informational purposes only — not investment advice.
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