Global Water Resources Inc. (GWRS) stock has touched a 52-week low, reaching a price level of $11.05. This marks a significant downturn for the water resource management company, which has seen its shares struggle in a challenging market environment. According to InvestingPro analysis, the stock appears overvalued at current levels, despite maintaining impressive gross profit margins of 74% and a 9-year consecutive dividend growth streak. Over the past year, GWRS has experienced a decline of 11.44%, reflecting investor concerns and broader market trends that have impacted the stock’s performance. The company, which specializes in owning and operating regulated water, wastewater, and recycled water utilities, is navigating through a period of heightened scrutiny as investors weigh its growth prospects against the backdrop of economic headwinds. InvestingPro subscribers can access additional insights, including 6 more ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks.
In other recent news, Global Water Resources reported its fourth-quarter 2024 earnings, revealing that earnings per share (EPS) fell short of expectations at $0.04 compared to the anticipated $0.06. However, the company exceeded revenue forecasts, reporting $13.29 million against the expected $12.7 million. For the full year, Global Water Resources experienced a slight decline in total revenue to $52.7 million, a 0.6% decrease from 2023, but saw growth in regulated revenue and adjusted EBITDA. Additionally, Global Water Resources has filed applications with the Arizona Corporation Commission for water and wastewater rate increases for its subsidiaries, potentially resulting in a $6.5 million net annual revenue increase if approved. The company proposed implementing these rate increases in two phases, starting in May 2026. The Arizona Corporation Commission has also approved Global Water Resources’ acquisition of the City of Tucson assets, expanding its customer base in that region. Furthermore, the company reached a settlement for a rate case that could authorize an approximate $1.1 million revenue increase, pending commission approval. These developments highlight Global Water Resources’ ongoing efforts to expand its operations and address cost increases through strategic rate adjustments.
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