CWCOConsolidated Water Co. Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.8×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CWCO?
Consolidated Water Co. Ltd. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.3 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Utilities - Regulated Water median 29% · 12 months to Q2 2026
- Cash conversion
- 2.78×
Cash conversion · 2.07× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.40%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 3.0% |
| FY2022 | 9.8% |
| FY2023 | 21% |
| FY2024 | 14% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 35%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 24%
- Revenue, trailing twelve months
- $128M
- Free cash flow, trailing twelve months
- $30M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Utilities, Regulated Water
Ranks #2 of 9 by RyuScore