Companhia de Saneamento Basico do Estado de Sao Paulo(kaka哥滴SBS), or "Sabesp," operates in Brazil, and its financial performance and stock price will be significantly affected by exchange rates because a good chunk of its debt is denominated in U.S. dollars and Japanese yen. And SJW(NYSE:SJW) has significant real estate operations.
Disregarding these two companies, there was a strong relationship between a water utility's size and its stock's performance in 2017. At the start of 2017, American Water(AWK) and Aqua America(WTR) were the two largest players, with California Water Service(CWT) and American States Water(AWR) tied for third. These four stocks were the best-performing in 2017. Conversely, three of the four smallest players performed the worst, with Artesian, which primarily operates in Delaware, bucking the trend. This dynamic isn't going to happen every year. In fact, the smaller utilities were the big winners in 2016. Though, as I noted in a Jan. 2017 article, that while some positive things can be said about them, "their small sizes combined with their lack of geographic diversity limit their long-term growth potential."
The bigger players are more likely to have the resources needed to acquire smaller utilities. As I've previously opined, this is a considerable advantage because the water utility industry is quite fragmented, and municipalities that operate their own water systems are increasingly selling them because they can't afford to maintain and upgrade them. https://www.fool.com/investing/2018/01/16/the-best-water-stocks-of-2017-how-the-10-largest-w.aspx
United Utilities Group plc (UU), the United Kingdom's largest listed water company, was founded in 1995 as a result of the merger of North West Water and NORWEB.
Severn Trent plc is a water company based in the United Kingdom that is traded on the London Stock Exchange, and is a constituent of the FTSE 100 Index. Severn Trent, the trading name owned by the above company applies to a group of companies employing more than 15,000 people across the United Kingdom, United States and mainland Europe, with some involvement in the Middle East.
SJW Group ("SJW") is a water utility processed, distribution, wholesale and retail company that is based in San Jose, California. It served 228,000 connections that serves over 1 million residents in regions of California, and approximately 11,000 connections, which offer water to about 36,000 people in Texas.[2][3] The enterprise value (As of February 2014) is $916.35 Million.[1]
Sabesp is a Brazilian water and waste management company owned by Sao Paulo state. It provides water and sewage services to residential, commercial and industrial users in Sao Paulo and in 363 of the 645 municipalities in Sao Paulo State, typically under 30-year concession contracts. It provides water to 26.7 million customers, or 60% of the population of the state. It is the largest water and waste management company in Latin America.[3] It provides basic sanitation services, which include all phases (abstraction, treatment, processing, distribution) and the collection, treatment and reuse of sewage. The Sao Paulo Metropolitan Region and the Regional Systems accounted for 74.5% and 25.5% of the sales and services rendered during the year ended December 31, 2004 respectively. Sabesp also supplies water on a bulk basis to municipalities in the Sao Paulo Metropolitan Area, in which it does not operate water systems to local operators.
In 2009 Sabesp had 15,103 employees for 7.12 million water connections, corresponding to 2.1 employees per 1,000 connections, indicating a high level of labor productivity.[4]
SABESP was founded in 1973. Its stocks were first floated on the Sao Paulo stock exchange in 1996. In 2002-2004 the Sao Paulo Government sold a further equity stakes, including a listing at the New York Stock Exchange. Today 49.8% of its shares are privately owned. In 2006 a law was passed that allowed SABESP to expand its activities into other Brazilian states and internationally. It has signed cooperation agreements in Spain, Israel and Costa Rica.[4] According to its CEO SABESP wants to expand to serve all cities in Sao Paulo State.[5]https://en.wikipedia.org/wiki/Sabesp
作者:
Curry 時間: 2018-5-6 16:27
3 Best Stocks to Invest in Water Water stocks -- as of the fall of 2016 -- still make compelling long-term investments, even after their big price run-ups over the last year. Beth McKenna
(TMFMcKenna)
Apr 18, 2015 at 9:58AM
This article was originally published on April 18, 2015 and was updated on Sept. 15, 2016.
I'm going to gush about water stocks, which in my opinion will remain one of the best places to safely grow money over the long term, particularly as part of a dividend-reinvestment portfolio. Water-related stocks in general have been getting more attention recently due to California's epic drought and Flint, Michigan's horrendous water system crisis. But it still seems to fly under many investors' radars that the best water stocks, such as American Water Works Company (NYSE:AWK), sport a powerful combination of market-beating long-term returns at less-than-average volatility.
A word of caution: Water stocks have soared since this article was first published. The group is likely to continue to experience pullbacks over the near- and mid-terms, as valuations are high, but I believe the space still has the potential for outperformance over the long term.
SOURCE: PIXABAY.
Spouting off the reasons to love water utilities
They're generally monopolies -- or at least primarily monopolies.
Fresh water supply is limited and demand should grow as the world population increases and as a greater percentage of the population moves into the consuming classes.
Water has no substitutes.
water industry真是不錯的產業!
The publicly traded water utilitiesThe water utility industry in the United States is heavily comprised of countless small municipal-owned and operated systems. Only 12 water utility stocks trade on major U.S. stock exchanges, and only nine have market caps of at least $300 million, meaning they're small caps or larger.
Water utility stocks with market caps of at least $300 millionCompanyMarket CapDiv. YieldForward P/EProjected Average Annual EPS Growth Next 5 Yrs.1-Yr Total Return 5-Yr Total Return
DATA TO SEPT. 15, 2016. DIV = DIVIDEND; P/E = PRICE-TO-EARNINGS; EPS = EARNINGS PER SHARE. RETURNS THAT HAVE BEAT THE S&P 500 ARE BOLD-FACED. DATA SOURCES: FINVIZ.COM AND YCHARTS.
Two of the nine stocks included in the chart were not included in the analysis:
Companhia de Saneamento Basico-- known as "Sabesp" -- operates in Sao Paulo, Brazil. It has some compelling features, but it's best suited for investors comfortable with higher risk due to the political turmoil in Brazil, fluctuations in foreign-currency exchange rates, and frequent water-supply concerns due to droughts.
SJW Corp. is not a pure play -- it has significant real estate operations.
不要買SBS & SJW!
Large relative size provides a competitive advantage Large size relative to peers/competitors provides water utilities with a major competitive advantage. This is a primary reason why American Water Works remains my favorite in the group. The water utility industry is extremely fragmented and capital-intensive, so the bigger companies are more likely to have the resources needed to acquire smaller utilities.
1. American Water Works: The geographically diversified industry giant
American Water Works provides services to approximately 15 million people in 47 states and one Canadian province. Its regulated business provides water and wastewater services in 16 states, while its nonregulated segment primarily builds, operates, and maintains water and wastewater facilities for military bases throughout the country. In 2015, it acquired Keystone Clearwater Solutions, which supplies water and related services to natural gas exploration and production companies for hydraulic fracturing -- "fracking" -- in the Appalachian Basin.
The Voorhees, NJ-based company's large relative size means it's likely to continue to have the resources to gobble up smaller water companies. Its geographic diversity allows for greater efficiencies, as it can often expand its operations without adding entirely new management teams.
Analysts expect American Water's earnings per share to grow at an average annual rate of 7.6% over the next five years, the second-highest growth rate (behind California Water Service's 9.1%) among the seven companies in our analysis. The company has increased its dividend every year since it went public in 2008.
One thing to watch -- while American Water's debt-to-equity ratio has been coming down, it's still the highest among our group. It's 1.3, while most of the others are in the 0.7 to 1.0 range. This is OK in such a low interest rate environment, but could become a concern if rates appreciably rise.
不知生息會對AWK影響多大?
2. Aqua America: Relatively large & decent geographic diversity
Aqua America provides water and wastewater services to approximately 3 million residents in the eight states of Pennsylvania, Ohio, Virginia, North Carolina, Illinois, New Jersey, Indiana, and Texas. Like American Water Works, it also has an unregulated market-based business, and has grown via an aggressive acquisition strategy. In 2012, as part of a joint venture with Penn Virginia Resource Partners, Aqua America began supplying water to energy producers for fracking in the Appalachian Basin.
The suburban Philadelphia-based company sports the highest dividend yield in the group, making it particularly compelling for investors more concerned with current income than total capital appreciation. It's paid dividends for 70 consecutive years and has increased its dividend for 23 consecutive years. Aqua America's trailing-12-month profit margin is 25.4%, the second highest (behind York Water's 26.3%) of the nine stocks in the chart. As a benchmark, American Water's profit margin is 15.1%, which is in the middle of the pack among the stocks in the chart.
3. American States Water: Great long-term record, but challenges abound
American States Water primarily operates as a regulated water utility, with its Golden State Water subsidiary supplying water to approximately 260,000 customers in 10 counties in Northern, Coastal, and Southern, Calif. It also provides electric service to about 24,000 customers in the Big Bear Lake region. Additionally, it has a nonregulated business that operates and maintains water and wastewater systems on military bases throughout the U.S.
American States is a long-term winner, reflecting the company's reputation as being very well run. Moreover, it's paid dividends every year since 1931, increasing the payout each year since 1954. Most investors, however, should probably hold off on investing in the company for now due to some considerable uncertainties and challenges.
A primary uncertainty involves its rate requests for 2016 through 2018; it's still awaiting news from the California Public Utility Commission (CPUC). A main challenge had related to declining revenue due to mandatory water restrictions in drought-stricken areas of California. While these restrictions were lifted on June 1, much of the state is still in a drought, so challenges remain.