California PUC general rate case outcomes - authorized ROE, rate base growth, and revenue adjustments typically decided every 3 years
Capital expenditure deployment and rate base growth - ability to invest $400-500M annually in infrastructure and earn regulated returns
California drought conditions and water supply reliability - impacts conservation mandates, supply costs, and regulatory treatment
Interest rate environment - affects financing costs for debt-funded capex and relative valuation versus bonds
low - Water utility demand is highly inelastic with minimal GDP sensitivity. Residential consumption remains stable through economic cycles as water is essential. Commercial/industrial demand shows modest cyclicality but represents smaller revenue portion. Revenue decoupling mechanisms in California further insulate earnings from volume fluctuations. New housing construction affects long-term customer growth but has limited near-term earnings impact.
Rising rates create mixed effects: (1) Negative impact on financing costs for $400-500M annual capex program, though typically recovered in rates with regulatory lag of 6-18 months; (2) Negative valuation impact as utility stocks compete with bonds for income investors - higher Treasury yields compress P/E multiples; (3) Authorized ROE in rate cases may adjust upward in rising rate environments, partially offsetting financing cost pressure. The 0.89 debt/equity ratio indicates moderate leverage sensitivity. Overall moderate negative sensitivity to rising rates.
California regulatory environment - PUC decisions on authorized ROE, rate base treatment, and cost recovery mechanisms directly determine profitability. Political pressure to limit rate increases can constrain returns despite infrastructure investment needs.
Climate change and water supply volatility - Extended droughts increase supply costs (purchasing water, desalination), trigger conservation mandates reducing volumes, and require costly infrastructure investments. California's water scarcity creates long-term operational complexity.
Aging infrastructure liability - Estimated $10+ billion nationwide water infrastructure replacement need creates ongoing capex pressure. Failure to maintain systems risks service disruptions, regulatory penalties, and reputational damage.
dividend/income - Regulated utilities attract conservative investors seeking stable dividends (estimated 2-3% yield) and defensive characteristics. Low volatility, predictable cash flows, and essential service nature appeal to risk-averse portfolios. Limited growth profile (mid-single-digit earnings growth) makes it less attractive to growth investors. Value investors may find appeal during rate case uncertainty or interest rate spikes that compress valuations below historical ranges.
Trend
-5.9% vs SMA 50 · -6.9% vs SMA 200
Momentum
Heavy distribution on elevated volume — institutions appear to be exiting. Squeeze setups unlikely while selling pressure persists.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2024 | $1.0B $1.0B–$1.0B | — | $2.97 | — | ±9% | Moderate4 |
FY2025 | $1.0B $1.0B–$1.0B | ▼ -0.9% | $2.32 | ▼ -21.9% | ±0% | Low2 |
FY2026(current) | $1.1B $1.1B–$1.1B | ▲ +7.8% | $2.58 | ▲ +11.4% | ±1% | Moderate3 |
Dividend per payment — last 8 periods
New York, New York--(Newsfile Corp. - May 3, 2026) - WHY: Rosen Law Firm, a global investor rights l…
california water service company (cal water) is the largest subsidiary of the california water service group. cal water is the largest investor-owned american water utility west of the mississippi river and the third largest in the country. formed in 1926, the san jose-based company serves more than 472,000 customers through 28 customer and operations centers throughout the state.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
CWT◀ | $42.36 | +0.28% | $2.5B | 21.3 | -353.6% | 1281.9% | 1500 |
| $1062.95 | -1.89% | $285.6B | 30.5 | +894.3% | 1283.0% | 1527 | |
| $96.95 | -0.95% | $202.2B | 24.7 | +1100.1% | 2487.3% | 1510 | |
| $96.71 | +0.01% | $109.0B | 24.9 | +1058.6% | 1468.9% | 1499 | |
| $128.60 | -0.73% | $100.1B | 20.1 | +619.3% | 1541.1% | 1498 | |
| $307.81 | -1.66% | $96.1B | 41.5 | +833.8% | 908.2% | 1494 | |
| $136.91 | -0.15% | $74.4B | 19.8 | +937.2% | 1643.5% | 1515 | |
| Sector avg | — | -0.73% | — | 26.1 | +727.1% | 1516.3% | 1506 |