Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

California Water Service Group (CWT)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$387.82 - $456.91$428.19
Multi-Stage$84.97 - $93.03$88.93
Blended Fair Value$258.56
Current Price$45.89
Upside463.43%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.48%7.74%1.100.990.910.800.700.640.610.580.560.54
YoY Growth--10.88%8.95%14.32%13.48%9.85%5.49%4.28%4.48%3.17%3.23%
Dividend Yield--2.28%2.14%1.57%1.35%1.25%1.27%1.15%1.56%1.55%2.02%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)136.39
(-) Cash Dividends Paid (M)72.63
(=) Cash Retained (M)63.76
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)27.2817.0510.23
Cash Retained (M)63.7663.7663.76
(-) Cash Required (M)-27.28-17.05-10.23
(=) Excess Retained (M)36.4846.7153.53
(/) Shares Outstanding (M)59.3659.3659.36
(=) Excess Retained per Share0.610.790.90
LTM Dividend per Share1.221.221.22
(+) Excess Retained per Share0.610.790.90
(=) Adjusted Dividend1.842.012.13
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate5.50%6.50%7.50%
Fair Value$387.82$428.19$456.91
Upside / Downside745.10%833.09%895.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)136.39145.25154.69164.75175.46186.86192.47
Payout Ratio53.25%60.60%67.95%75.30%82.65%90.00%92.50%
Projected Dividends (M)72.6388.02105.12124.06145.02168.18178.03

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)82.4083.1883.96
Year 2 PV (M)92.1193.8795.64
Year 3 PV (M)101.77104.69107.67
Year 4 PV (M)111.36115.64120.05
Year 5 PV (M)120.90126.73132.80
PV of Terminal Value (M)4,535.824,754.904,982.36
Equity Value (M)5,044.355,279.015,522.48
Shares Outstanding (M)59.3659.3659.36
Fair Value$84.97$88.93$93.03
Upside / Downside85.17%93.78%102.72%

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