Global Water Resources, Inc. (GWRS) | Investment Case

1. Company Snapshot

1.a. Company Description

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona.As of December 31, 2020, it served approximately 74,048 people in approximately 27,630 homes.The company was founded in 2003 and is based in Phoenix, Arizona.

Show Full description

1.b. Last Insights on GWRS

Negative drivers behind Global Water Resources, Inc.'s recent performance include a Q4 earnings miss, with the company reporting $0.04 per share, below the estimated $0.06 per share. This marks a decline from the same period last year, when earnings were $0.07 per share. Although the company continues to add new customers, its revenue growth was not enough to offset the earnings miss.

1.c. Company Highlights

Last Price	8.68
Change Percentage	0.70%
Open	8.69
Previous Close	8.62
Market Cap ( Millions)	249
Volume	153143
Year High	12.78
Year Low	8.28
M A 50	9.76
M A 200	10.17

FCF Yield	-15.43%
Dividend Yield	3.50%
ROE	8.90%
Debt / Equity	7.17%
Net Debt / EBIDTA	-17.35%
Price To Book	3.11
Price Earnings Ratio	42.79
Price To FCF	-6.48
Price To sales	4.59
EV / EBITDA	8.99

2. GWRS Posts Mixed Q3 2025 Results: Revenue Growth Slows, EPS Misses Estimates

Global Water Resources, Inc.'s (GWRS) revenue for Q3 2025 came in at $15.5 million, up 8.4% year-over-year, driven by a 6.6% increase in total active service connections to 68,130. However, net income declined to $1.7 million or $0.07 per diluted share, missing analyst estimates of $0.09 per share. Adjusted EBITDA was $7.8 million, down from $8.2 million in Q3 2024. Operating expenses increased by 21.9% to $12.6 million, largely due to the integration of the Tucson acquisition.

Publication Date: Nov -16

                                    📋 Highlights
                                    Tucson Acquisition Expansion:
                                                Added 2,200 connections and $7.7M rate base post-acquisition, enhancing infrastructure capacity.
Revenue Growth:
                                                Q3 2025 revenue reached $15.5M, up 8.4% YoY ($1.2M increase) despite higher operating expenses.
Connection Growth:
                                                Total active service connections rose 6.6% to 68,130 as of September 2025, driven by Maricopa’s 7.4% population growth.
Rate Case Impact:
                                                Proposed $4.3M net revenue increase (median bill <10% rise) supports long-term value creation and shareholder returns.
Ag-to-Urban Legislation:
                                                Governor-backed program converts agricultural groundwater rights to municipal supply, creating sustainable water resources.

                                

Operational Highlights

The company closed the Tucson acquisition, adding 2,200 connections and $7.7 million in rate base, and made significant progress on the Ag-to-Urban program, which is expected to provide a new, economical water supply. As Ron Fleming noted, "the Ag-to-Urban program is a win-win-win for all stakeholders, as it converts historic groundwater pumping rights for farming activities to a new municipal water supply." The Highway 347 expansion project is also expected to drive growth in the City of Maricopa.

Regulatory Activity and Strategic Initiatives

The company is making progress on its rate case, with a proposed net revenue increase of $4.3 million, resulting in a median bill increase of less than 10% to the typical residential water and wastewater customer. The Tucson acquisition is being fully integrated, and the company is focused on delivering strong total returns to shareholders.

Valuation and Growth Prospects

GWRS trades at a P/E Ratio of 43.92 and an EV/EBITDA multiple of 9.24, indicating a premium valuation. Analysts estimate revenue growth of 8.2% next year. While the company's growth prospects are promising, the current valuation may be factoring in a significant portion of this growth. As of the latest earnings report, the actual EPS of $0.07 was below expectations, potentially impacting the stock's short-term performance.

3. NewsRoom

Global Water Resources Declares Monthly Dividend

Nov -26

Source: globenewswire.com

Global Water Resources, Inc. (GWRS) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

Global Water Resources, Inc. (GWRS) Lags Q3 Earnings Estimates

Nov -12

Source: zacks.com

Global Water Resources Reports Third Quarter 2025 Results

Nov -12

Source: globenewswire.com

Global Water Resources (GWRS) to Release Quarterly Earnings on Thursday

Nov -06

Source: defenseworld.net

Global Water Resources Declares Monthly Dividend

Oct -31

Source: globenewswire.com

Global Water Resources Sets Third Quarter 2025 Conference Call for Thursday, November 13, 2025 at 1:00 p.m. ET

Oct -22

Source: globenewswire.com

Here's Why You Should Add GWRS Stock to Your Portfolio Right Now

Oct -08

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Wastewater and Recycled Water Services

Expected Growth: 8.1%

Growing demand for water conservation, increasing adoption of recycled water for non-potable purposes, and stringent regulations on wastewater discharge drive the growth of the wastewater and recycled water services market.

Water Services

Expected Growth: 7.1%

Growing demand for water conservation, increasing adoption of water recycling and reuse, and stringent regulations driving investment in water infrastructure are expected to drive the growth of the global water services market.

Unregulated Revenues

Expected Growth: 7.2%

Growing demand for water and wastewater services in unregulated areas, driven by population growth, urbanization, and increasing water scarcity, is expected to drive revenue growth for Global Water Resources, Inc.

7. Detailed Products

Water Conservation

Global Water Resources, Inc. offers water conservation services that help reduce water waste and optimize water usage for its customers.

Water Recycling

The company provides water recycling services that treat and reuse water for non-potable purposes, reducing the demand on potable water supplies.

Water Efficiency Solutions

Global Water Resources, Inc. offers water efficiency solutions that help customers optimize their water usage and reduce waste.

Water Infrastructure Management

The company provides water infrastructure management services that help maintain and optimize water distribution systems.

Water Metering and Billing

Global Water Resources, Inc. offers water metering and billing services that help customers track and manage their water usage.

8. Global Water Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Global Water Resources, Inc. because the company's water supply and treatment services are essential for its customers, making it difficult for them to find alternative solutions.

Bargaining Power Of Customers

The bargaining power of customers is medium for Global Water Resources, Inc. because while customers have some flexibility to choose from different water supply and treatment service providers, the company's strong reputation and quality of service limit their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Global Water Resources, Inc. because the company has a diverse supplier base and is not heavily dependent on a single supplier, giving it more negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Global Water Resources, Inc. because the water supply and treatment services industry is attractive and has relatively low barriers to entry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is medium for Global Water Resources, Inc. because while there are several competitors in the market, the company's strong brand reputation and quality of service help it to differentiate itself and maintain a competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	68.97%
Debt Cost	6.06%
Equity Weight	31.03%
Equity Cost	8.83%
WACC	6.92%
Leverage	222.31%

11. Quality Control: Global Water Resources, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Aris Water Solutions

A-Score: 6.0/10

Value: 6.0

Growth: 8.6

Quality: 4.7

Yield: 5.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

Artesian Resources

A-Score: 5.7/10

Value: 6.2

Growth: 4.7

Quality: 5.3

Yield: 7.0

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

SJW

A-Score: 5.5/10

Value: 6.4

Growth: 5.6

Quality: 6.9

Yield: 4.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

Pure Cycle

A-Score: 5.0/10

Value: 2.9

Growth: 6.3

Quality: 8.2

Yield: 0.0

Momentum: 5.5

Volatility: 7.3

1-Year Total Return ->

Middlesex Water

A-Score: 4.9/10

Value: 3.7

Growth: 5.7

Quality: 6.4

Yield: 4.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

Global Water Resources

A-Score: 4.9/10

Value: 4.0

Growth: 4.8

Quality: 6.6

Yield: 4.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

21.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.92%

Global Water Resources, Inc. - US3794631024

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GWRS

1.c. Company Highlights

Expensive

Average Growth

Medium Volatility

Earnings Beats

Revenues Miss

Average Yield

Stable Momentum

Lower Yield

Earnings Miss

Revenues Beats

Higher Growth

Weak Momentum

Better Quality

Fairly Valued

2. GWRS Posts Mixed Q3 2025 Results: Revenue Growth Slows, EPS Misses Estimates

Operational Highlights

Regulatory Activity and Strategic Initiatives

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Wastewater and Recycled Water Services

Expected Growth: 8.1%

Water Services

Expected Growth: 7.1%

Unregulated Revenues

Expected Growth: 7.2%

7. Detailed Products

Water Conservation

Water Recycling

Water Efficiency Solutions

Water Infrastructure Management

Water Metering and Billing

8. Global Water Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Global Water Resources, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.68$

Current Price

8.68$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA