California Water Service Group Stock Discussion

Wall Street banks are in a frenzy over "The Next AI Trade," piling into the 'Powering up America' investment themes. These include power grid companies, commodities such as copper and uranium, as well as artificial intelligence chipmakers. However, the issue of water consumption has been relatively overlooked.
JP Morgan recently released a research report titled "Deep Dive into Power,...

The market seems unfazed by the EPS figure, possibly expecting a faster drop in earnings. With a P/E ratio of 52.26, an EPS rebound is anticipated. However, last year's performance suggests unresolved challenges, as it underperformed the annualized loss of 0.9% over the last half decade.

California Water Service Group's declining ROCE and flat total return over five years hint it's not a potential multi-bagger. The company's reinvestment hasn't yet boosted earnings, suggesting long-term investments.

The high P/E ratio of the company might be due to expected stronger performance, with 50% EPS growth surpassing the market's 12% prediction. Persisting conditions could further drive the share price.

Mr. Lynch's financial expertise and extensive industry experience are greatly valued, making him the perfect fit for this position at California Water Service Group. The company's leadership has expressed strong confidence in his abilities and his past track record.

California Water Service Group's falling ROCE trend and meager 25% return to investors in the past five years might be underwhelming. Consider other opportunities for possible multi-baggers. There are 4 warning signs, including 2 major ones, for these investments.