From Yahoo Finance: 2025-05-07 15:01:00

Consolidated Water Co. Ltd. (CWCO) is analyzed in a bullish thesis on Substack. CWCO’s share price was $23.17 on May 2nd, with trailing and forward P/E ratios at 20.69 and 26.32 respectively. The company operates in the water treatment sector and has seen strong revenue growth since 2021.

CWCO is a high-quality business in the water niche, trading at a multiple of 2.75x sales. The company specializes in reverse osmosis technology for desalination and water treatment plants. Revenue has doubled from 2022 to 2024, with a significant project in Oahu, Hawaii expected to generate $149 million in buildout revenue by 2027.

With a strong balance sheet and no debt, CWCO is well-positioned for growth. The company has potential for inorganic growth and acquisitions, with a market cap of $370 million. Catalysts such as new contracts and acquisitions could drive shares from $23.17 to $37.85 by mid-2027, presenting an appealing risk/reward opportunity.

Despite not being among the 30 Most Popular Stocks Among Hedge Funds, CWCO has potential for growth. 12 hedge fund portfolios held CWCO at the end of the fourth quarter. While the stock has risks, other AI stocks may offer greater promise for higher returns in a shorter timeframe. For a promising AI stock trading at less than 5 times earnings, consider alternatives.

Read more: Consolidated Water Co. Ltd. (CWCO): A Bull Case Theory