SAN JOSE, Calif., Sept. 19, 2024 (GLOBE NEWSWIRE) -- California Water Service (Cal Water), in partnership with DoGoodery, has launched its 11th annual water conservation education program for schools and students in kindergarten through 12th grade. Tap Into Learning offers multiple opportunities for students, classrooms, and school-based clubs in Cal Water service areas to engage in activities related to water conservation and sustainability throughout the 2024-25 academic year. Program components include: ...

Core Viewpoint - California Water Service is positioned as a long-term buy for dividend growth investors due to recent positive financial results, regulatory approvals, and a low valuation compared to historical levels [1][15]. Company Overview - California Water Service Group, established in 1926, is the third largest publicly traded water and wastewater utility in the U.S., operating in five states and serving over two million people [2]. - The company reported total revenue of over $794.6 million in 2023 and $984.5 million in the last twelve months [2]. Revenue and Earnings Growth - In Q2 2024, the company reported a 26% increase in operating revenue, with diluted EPS rising approximately 311% due to regulatory approval and lower expenses [3]. - The share price has increased by about 6.0% in 2024 and 11.2% over the last twelve months [3]. Financial Performance - Q2 2024 financials showed operating revenue of $515.0 million, a 58.4% increase from $325.1 million in YTD 2023, while operating expenses rose by 19.1% [4]. - Net income attributable to California Water Service was $110.5 million, a significant recovery from a loss of $12.7 million in the previous year [4]. Growth Drivers - Revenue growth has averaged about 3% annually over the past five and ten years, driven by acquisitions and periodic rate cases [5]. - The company plans to invest $1.6 billion in infrastructure from 2025 to 2027, with requested revenue increases of $140.6 million (17.1%) for 2026, $74.2 million (7.7%) for 2027, and $83.6 million (8.1%) for 2028 [8][9]. Competitive Advantages - California Water Service operates as a regulated monopoly, providing a stable demand for freshwater and wastewater treatment insulated from economic cycles [10]. Dividend Analysis - The company has a 57-year streak of dividend increases, with a forward yield of approximately 2.04%, above its five-year average of 1.79% [11][12]. - The forward payout ratio is around 38%, indicating strong dividend safety supported by operating cash flow [13]. Valuation - The current share price of approximately $54.98 suggests the stock is slightly undervalued compared to a fair value estimate of $58.80 based on a P/E ratio of 20 [14]. - Sensitivity calculations indicate a fair value range from $55.86 to $61.74, with the stock price at 89% to 98% of the fair value estimate [14]. Final Thoughts - Water utilities like California Water Service are considered excellent long-term investments, providing value and growing dividends, with the company being slightly undervalued based on historical metrics [15].

SAN JOSE, Calif., Sept. 10, 2024 (GLOBE NEWSWIRE) -- (NYSE: CWT)—For his leadership to keep water flowing to his local communities during the devastating Lahaina wildfire last year, the National Association of Water Companies (NAWC) honored John (Kani) Kadowaki with the Living Water Award during its annual Water Summit today. Kadowaki is the Maui Operations Manager of Hawaii Water Service (Hawaii Water), a subsidiary of California Water Service Group (Group). The Living Water Award is presented to the regul ...

SAN JOSE, Calif., Sept. 04, 2024 (GLOBE NEWSWIRE) -- California Water Service Group (Group) (NYSE: CWT) has earned a spot on Newsweek's list of the "World's Most Trustworthy Companies" for the second year in a row, the magazine announced today. The designation, also in its second year, was given to Group by Newsweek and Statista Inc., a leading statistics portal and industry ranking provider, based on feedback and analysis from the utility's customers, investors, and employees. Newsweek selected 57 companie ...

SAN JOSE, Calif., Sept. 03, 2024 (GLOBE NEWSWIRE) -- California Water Service (Cal Water) opened its sixth annual Firefighter Grant Program today to fire departments in its districts, as part of its ongoing commitment to—and partnership with—local first responders. Cal Water encourages professional and volunteer fire departments that serve any part of Cal Water's service areas to apply for funding that will offset costs for fire protection efforts, equipment, training, and education. Cal Water's Firefighter ...

SAN JOSE, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) -- For the ninth consecutive year, the Great Place to Work® Institute has named California Water Service Group (Group) (NYSE: CWT) a Great Place to Work. The Great Place to Work award is based wholly on current, full-time employees' feedback about their experience working at the company. The certification includes two parts: a Culture Audit© and a Trust Index©. Results were then compared to other top U.S. workplaces to determine the company's placement. Beyon ...

Core Insights - The article discusses three companies recognized for their strong dividend performance: Emerson Electric, Illinois Tool Works (ITW), and California Water Service Group, highlighting their operational resilience and dividend growth history [2][3][19] Group 1: Emerson Electric - Emerson Electric's stock has declined by 11.5% recently, creating a potential buying opportunity despite a negative market reaction to its Q3 earnings report [4] - The company's automation segment is facing challenges, particularly in discrete automation and test and measurement, with expectations for recovery not until 2025 [6][8] - Emerson's process and hybrid automation markets are showing steady mid-single-digit growth, supported by investments in sectors like LNG and life sciences [7] - The company anticipates $2.8 billion in free cash flow for 2024, trading at 21 times estimated free cash flow, indicating a reasonable valuation as earnings and cash flow are expected to improve [9] Group 2: Illinois Tool Works (ITW) - ITW has consistently outperformed the S&P 500 over the last decade, but its stock is down year-to-date due to macroeconomic challenges [10] - The company has raised its dividend by 7% to $1.50 per share quarterly, resulting in a forward yield of 2.4%, with a payout ratio of 59% based on trailing earnings [12] - ITW's diversified business model across seven segments helps mitigate risks from cyclical downturns, maintaining operational efficiency with a record high Q2 2024 operating margin of 26.2% [13][15] - The current valuation of ITW has become more attractive as its price-to-earnings ratio approaches historical averages [16] Group 3: California Water Service Group - California Water Service Group has a long history of dividend payments, having raised its dividend for 57 consecutive years, with a current forward yield of 2.1% [19][20] - The company focuses on steady growth through acquisitions of small municipal utilities and aims for a 1% annual growth in customers over the next five years, expanding into states beyond California [20] - Operating primarily in regulated markets, California Water Service has a predictable cash flow, allowing for effective planning of capital expenditures and dividends, with a 62% average payout ratio over the past decade [21] - The stock is currently valued at only 7.6 times operating cash flow, compared to a five-year average cash flow multiple of 12.6, indicating a potential buying opportunity [22]

SAN JOSE, Calif., Aug. 26, 2024 (GLOBE NEWSWIRE) -- In recognition of the company's commitment to its employees, the San Francisco Chronicle has named California Water Service Group (Group) (NYSE: CWT) a Top Workplace in the Bay Area for the 12th year. The distinction is awarded each year based on input from local employees of California Water Service (Cal Water), Group's largest subsidiary. Beyond Cal Water's long-standing efforts to support employees—which include a competitive compensation and benefits p ...

California Aqueduct with Storm Sky trekandshoot/iStock via Getty Images Having increased its dividend for 57 consecutive years, California Water Service Group (NYSE:CWT) is likely to offer stable dividend growth in the future as well. The company, which is currently moderately discounted, provides a relatively favorable place to buy. Although CWT's main business area remains California, the company is gradually expanding to other US states as well. This fact reduces regional risk and increases growth opport ...

California Water Service Group (CWT) recorded second-quarter 2024 adjusted earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 79.5%. The bottom line also increased from the year-ago quarter's figure of 17 cents. Total Revenues Operating revenues totaled $244.3 million, which surpassed the Zacks Consensus Estimate of $200 million by 22%. The top line also increased 25.9% from $194 million recorded in the prior-year quarter. The quarterly results continued to benefit f ...