Consolidated Water combines a 3-of-4 earnings beat streak and meaningful analyst-implied upside with strong cash conversion and Piotroski quality, but a hard death-cross gate failure, declining revenue, and elevated leverage keep the engine's stance at reducing rather than adding to the position.
Thesis pillars
- Death Cross Recovery Setup→Stable
- Analyst Upside Valuation→Stable
- Cash Conversion Quality Strength→Stable
- +2 more pillars — see the Why tab for full reasoning
Consolidated Water Co. Ltd. (CWCO) Stock Analysis
Utilities · Utilities - Regulated Water
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $28.90 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Weak growth.
Consolidated Water produces and sells desalinated water and provides water-infrastructure design, construction, and management services across the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands. The company generated approximately 35% of 2025... Read more
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $28.90 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.2/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 33d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
About Consolidated Water Co. Ltd.
About Consolidated Water Co. Ltd.
Consolidated Water generated 35% of its 2025 consolidated revenue from Services, 26% from Retail water, 25% from Bulk water, and 14% from Manufacturing, operating desalination and water-treatment infrastructure across the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands. The company's Cayman Water subsidiary holds an exclusive government-issued retail license to supply potable water to the Seven Mile Beach and West Bay areas of Grand Cayman, two of the territory's three most populated areas.
Consolidated Water's Bulk segment sells desalinated water under long-term contracts to government-owned utilities — the Water and Sewerage Corporation in The Bahamas through 90.9%-owned CW-Bahamas, and the Water Authority-Cayman through Ocean Conversion (Cayman) — while its Services segment, led by U.S. subsidiary PERC and Colorado-based Ramey Environmental Compliance, designs, builds, and operates water and wastewater infrastructure for third parties, including a 1.7-million-gallon-per-day desalination plant under development in Oahu, Hawaii. The Manufacturing segment, run through Florida-based Aerex, builds reverse-osmosis and filtration equipment sold to municipal and industrial customers, and the company holds a 50%-voting, 43.53%-equity stake in Ocean Conversion (BVI), which it accounts for under the equity method. The company operates ten water-production plants across the Cayman Islands, Bahamas, and British Virgin Islands totaling 27.2 million gallons per day of capacity, plus 97 U.S. water-treatment facilities where Consolidated Water serves as the certified operator in responsible charge.
Show full overview
Cayman Water's retail license — the source of 26% of 2025 revenue — has technically operated on an expired 2018 extension since that date, with the company paying a 7.5% royalty on retail revenue and continuing under the original 1990 license terms while negotiating a permanent replacement with regulator OfReg; a February 2025 concession preserved the status quo but a final new license remains unresolved. The Bulk segment carries a parallel counterparty concentration, since both of its long-term contracts run to sole government utilities — Bahamas' WSC and Grand Cayman's WAC — leaving roughly half of Consolidated Water's revenue tied to renewal and pricing decisions made by government counterparties rather than a diversified commercial customer base.
See also: Utilities · Utilities - Regulated Water
From Consolidated Water Co. Ltd.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMregulatoryCayman Islands retail water license26%10-K Item 1: 'We produce potable water from seawater utilizing reverse osmosis technology and supply this water to end-users, including residential, commercial and government customers in the Cayman Islands under an exclusive retail license issued by the Cayman Islands government'
- MEDIUMcounterpartygovernment-owned utilities (WAC/WSC)25%10-K Item 1: 'We produce potable water from seawater utilizing reverse osmosis technology and supply this water to government-owned utilities in the Cayman Islands and The Bahamas.'
Material Events(8-K, last 90d)
- 2026-04-10Item 5.02LOWDouglas Vizzini promoted from VP of Finance to Executive Vice President and Chief Accounting Officer effective April 1, 2026, under a new employment agreement through December 2027; a routine promotion, not a departure.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
3 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Revenue shrinking — -11.1% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $28.90 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $27.65. Score 5.2/10, moderate confidence.
Take-profit target: $36.55 (+26.5% upside). Prior stop was $27.65. Stop-loss: $27.65.
Weak growth; Negative momentum; Below 200-MA, MA slope -1.2%/30d (confirmed downtrend).
Consolidated Water Co. Ltd. trades at a P/E of 26.3 (forward 21.1). TrendMatrix value score: 6.3/10. Verdict: Sell.
7 analysts cover CWCO with a consensus score of 4.1/5. Average price target: $43.
What does Consolidated Water Co. Ltd. do?Consolidated Water produces and sells desalinated water and provides water-infrastructure design, construction, and...
Consolidated Water produces and sells desalinated water and provides water-infrastructure design, construction, and management services across the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands. The company generated approximately 35% of 2025 consolidated revenue from its Services segment, 26% from Retail water sold under an exclusive Cayman Islands government license, 25% from Bulk water sold to government-owned utilities, and 14% from its Manufacturing segment.