Consolidated Water Co. Ltd. (NASDAQ:CWCO), a key player in the water supply and treatment industry, known for designing, building, and operating advanced water plants, recently reported its financial results for the year ending December 31, 2024. Despite its strong market presence, CWCO's earnings per share of $0.12 on March 17, 2025, fell short of the expected $0.28, and its revenue of $28.4 million was below the anticipated $33.6 million.
The company's total revenue for 2024 saw a 26% decline, amounting to $134 million. This decrease was mainly due to the completion of two major construction projects in June 2024, which had been ongoing since 2023. Despite this, retail revenue increased by 5% to $31.7 million, driven by higher sales volumes. However, bulk revenue slightly decreased by 3%, totaling $33.7 million, while manufacturing revenue saw a modest 1% increase, reaching $17.6 million.
Consolidated Water's ongoing $204 million desalination plant project in Hawaii is expected to positively impact future financial results as it progresses into its higher-revenue construction phase. This project could help offset the revenue decline experienced in 2024. The company plans to discuss these results further in a conference call scheduled for 11:00 a.m. Eastern time.
In terms of financial metrics, CWCO has a price-to-earnings (P/E) ratio of approximately 12.58, indicating how the market values its earnings. The price-to-sales ratio is about 2.90, reflecting the market's valuation of its revenue. The enterprise value to sales ratio stands at 2.26, showing the company's valuation at over twice its sales when considering its enterprise value.
The company's financial health is further highlighted by its low debt-to-equity ratio of 0.017, indicating minimal reliance on debt financing. Additionally, the current ratio is a strong 7.66, underscoring the company's robust liquidity position. The earnings yield of approximately 7.95% provides insight into the return on investment for shareholders, while the enterprise value to operating cash flow ratio of 9.76 suggests how the market values the company's cash flow generation.
