| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 21.7x | 17.8x | Bottom tier | |
Growth | 58 | 3.9% | 7.1% | Around median | |
Quality | 46 | 5.2% | 4.5% | Around median | |
Safety | 35 | 4.4x | 2.6x | Bottom tier | |
Capital Return | 31 | 2.54% | 2.12% | Bottom tier | |
Momentum | 73 | 8.1% | 2.9% | Top tier | |
Sentiment | 37 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
California Water Service Group (CWT) operates regulated water utilities, with California representing its largest operating entity, alongside operations in Hawaii and Washington, expansion projects in Texas, and transactions targeting Oregon and Nevada. Earnings growth primarily depends on investing capital in infrastructure and then incorporating it into the regulator-approved rate base; management stated that infrastructure replacement is the primary growth driver, while selective acquisitions represent a secondary driver.
In Q2 fiscal 2026, the company reported on its July 30, 2026 call revenue of $309 million, compared with $265 million in the corresponding period, net income of $56.5 million, compared with $42.2 million, and diluted earnings per share of $0.93, compared with $0.71. These figures represent growth of approximately 16.6% in revenue and 33.9% in net income, with a calculated net margin of approximately 18.3%; however, the provided EDGAR summary reports quarterly revenue of $278 million for the same period and the same net income, so the operating comparison here is based on the figures presented by management on the call.
The quarterly increase came from $15.3 million in IRMA revenue related to the California general rate case decision, $15 million from rate changes and regulatory mechanisms, and $9.3 million in deferred RAM revenue. Conversely, results absorbed $6.3 million from higher per-unit water supply costs, $7.9 million in expenses associated with deferred RAM revenue, and $7 million from higher income taxes. For the first half of fiscal 2026, revenue reached $523 million and net income reached $60.5 million, compared with $469 million and $55.5 million in the corresponding period of fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $53.5 and a narrow range of $53 to $54. The average is near the upper end of the 52-week range of $53.82 and significantly above the lower end of $41.29, reflecting positive expectations but leaving little dispersion among analyst estimates; the data do not include a valid price-to-earnings multiple for an additional comparison.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Net income reached $56.5 million and diluted earnings per share reached $0.93, compared with $42.2 million and $0.71 in the corresponding period. Customer rate changes, IRMA, and deferred RAM revenue contributed approximately $0.20, $0.15, and $0.11 to earnings per share, respectively. Conversely, water production costs and RAM-related expenses reduced earnings per share by approximately $0.08 and $0.10.
The company spent $147 million in Q2 fiscal 2026, an increase of 23.1%, while first-half spending reached a record $270 million. Management is targeting a rate base of approximately $3.5 billion by the end of 2028, provided projects are completed on schedule. In California, the regulatory decision covers approximately $1.45 billion of previously approved capital and approximately $229 million of advice letter projects for 2024–2027.
The company estimates included net spending on PFAS remediation at approximately $155 million after accounting for approximately $60 million in recoveries from polluters. Spending on the program reached nearly $30 million through the end of Q2 fiscal 2026. Management stated on July 30, 2026 that the net cost could change as legal recoveries continue and additional grants are obtained.
Change-of-control applications for the NEXUS assets in Oregon and Nevada had been filed, and integration planning was ongoing according to the July 30, 2026 call. Management set a target to close the transaction before the end of 2026, with the Nevada decision expected first because of its statutory regulatory schedule. In Texas, the company added 200 new connections to wastewater systems in the South Austin market during Q2 fiscal 2026 and was awaiting final approvals related to BVRT and a consolidated rate case.
As of June 30, 2026, the company had unrestricted liquidity of $43.4 million and approximately $395 million available under its credit line. Total credit facilities amount to $600 million, can be expanded to $800 million, and mature in March 2028. Conversely, the company raised approximately $88.8 million through share issuance under the ATM program in Q2 fiscal 2026, and any additional financing in the second half of fiscal 2026 may be related to capital expenditure and growth transactions.
The data indicate one sale and no purchases during the three months ending with the latest transaction on August 13, 2026, with net activity of negative 186,350.5. The data do not identify the seller, the reason for the transaction, or whether it was part of a prearranged trading plan. Therefore, this signal remains weaker than operating and regulatory indicators because insider sales may be prearranged unless disclosures state otherwise.
