PHOENIX - Global Water Resources, Inc. (NASDAQ: GWRS), a company specializing in water resource management, has announced the acquisition of seven water systems from the Tucson city utility. These systems, located in Pima County, serve around 2,200 customers and will be integrated with Global Water's existing operations in the region. This move will increase the company's customer base in Pima County to about 7,200.
The acquisition, expected to be finalized early next year, is contingent on approval by the Arizona Corporation Commission. It marks a continuation of Global Water's expansion strategy in the area, following the addition of 5,000 customers from seven acquisitions over the past four years.
Chris Krygier, Global Water's COO, emphasized the strategic fit of the acquisition and the company's commitment to community partnership. He also outlined plans to modernize the acquired systems with advanced metering infrastructure (AMI), including the installation of smart meters for wireless usage metering. This technology is already in use at over 95% of Global Water's connections and is part of the company's broader capital improvement plans for the region. The improvements aim to enhance water service quality and offer potential savings to customers.
Global Water Resources is recognized for its Total Water Management (TWM) approach, which has earned it national recognition and several industry awards. The company operates 31 systems, primarily around metropolitan Phoenix, and recycles over 1 billion gallons of water annually.
The acquisition is a part of the company's strategy to consolidate utility services, employ automation, and enhance water resource management for Arizona communities. The information in this article is based on a press release statement.
InvestingPro Insights
As Global Water Resources, Inc. (NASDAQ: GWRS) continues to expand its operations with the recent acquisition of seven water systems in Pima County, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, Global Water Resources boasts a strong gross profit margin of 76.11% for the last twelve months as of Q4 2023. This impressive margin underscores the company's efficiency in managing its cost of goods sold and ability to retain earnings.
Investors should note that the company has experienced a significant revenue growth of 18.56% over the last twelve months as of Q4 2023, indicating a robust increase in its business activities and potential market expansion. Additionally, the company has raised its dividend for 8 consecutive years, reflecting a commitment to returning value to shareholders. With a current dividend yield of 2.39% as of April 15, 2024, GWRS presents an attractive opportunity for income-focused investors.
For those interested in the company's valuation metrics, GWRS is trading at a forward P/E ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings potential. The PEG ratio stands at 0.99, indicating that the company's earnings growth is in line with its price, which could appeal to growth-oriented investors.
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