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Consolidated Water (CWCO) has put up another solid top line in FY 2025 so far, with Q3 revenue of about US$35.1 million and basic EPS of roughly US$0.35, while the latest trailing twelve months show revenue of about US$130.8 million and EPS of around US$1.09. Over recent periods the company has seen revenue move from roughly US$28.4 million in Q4 2024 to US$35.1 million in Q3 2025, with quarterly EPS shifting from about US$0.11 to US$0.35 over the same stretch. This sets up a story where investors are watching how those earnings translate into a margin profile that has recently come under some pressure.

With the headline numbers on the table, the next step is to see how this earnings run lines up with the key narratives investors follow, and where the latest margin picture supports or challenges those views.

See what the community is saying about Consolidated Water

13.3% net margin versus 16.6% a year ago

• The trailing 12 month net profit margin is 13.3%, compared with 16.6% a year earlier, alongside trailing net income from continuing operations of US$17.4 million on revenue of about US$130.8 million.
• Bears focus on margin pressure and project risks, and the recent squeeze lines up with their concerns:
  • Trailing margin compression to 13.3% sits next to risks around higher operating and compliance costs, which bears link to energy, regulatory and potential carbon related expenses that could weigh on profitability.
  • Customer and project concentration in regions like the Caribbean, plus reference to delays in projects such as the Hawaii desalination plant, fits with the idea that any contract hiccups can quickly show up in net margin moves.

Five year earnings compounding at 32.5%

• Earnings have compounded at 32.5% per year over the past five years, while the latest trailing 12 month EPS sits at about US$1.09 with net income from continuing operations of roughly US$17.4 million.
• Supporters of the bullish view point to that long run earnings record and project pipeline as key positives:
  • Consensus narrative highlights expansion of desalination and water infrastructure capacity, plus new U.S. design build and services contracts, as building blocks for more stable revenues and earnings quality over time relative to the current US$130.8 million trailing revenue base.
  • The enlarged Fort Pierce manufacturing facility and access to capital for acquisitions are cited as enablers of larger, potentially higher margin projects. Bulls argue this can keep the longer term earnings trend intact even after a softer most recent year.

P/E of 28.8x with DCF fair value at US$55.75

• The shares trade at a P/E of 28.8x versus a peer average of 19.3x and global water utilities at 16.7x, while the current price of US$31.35 screens about 43.8% below a DCF fair value of roughly US$55.75.
• There is a clear tension between bullish growth expectations and more cautious valuation worries:
  • On one hand, the DCF fair value of US$55.75 and a consensus analyst price target of US$43.00 both sit above the current US$31.35 share price, which fits the reward side of the story highlighted by the long term earnings growth and modest 1.79% trailing dividend yield.
  • On the other hand, the elevated 28.8x P/E relative to peers and industry, combined with a trailing net margin of 13.3% that is lower than the 16.6% level a year ago, gives bears concrete numbers to question how much of that growth and project pipeline is already built into the valuation.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Consolidated Water on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both bullish and cautious angles on the table, the real question is where you land on the story for Consolidated Water. Act while the details are fresh in mind, review the underlying numbers, and weigh up the 2 key rewards

Explore Alternatives

Consolidated Water's weaker 13.3% net margin versus 16.6% a year ago and a relatively high 28.8x P/E suggest some investors may feel they are paying up for pressured profitability.

If that trade off leaves you uncomfortable, move quickly and use the 77 resilient stocks with low risk scores to focus on companies where valuations and risk profiles may better match your comfort zone.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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