Published on 5 Apr 2024 on Zacks via Yahoo Finance

Consolidated Water (CWCO) Rides on New Technology, Acquisitions

Consolidated Water Co. Ltd. CWCO uses the most advanced technology to convert seawater to potable water to meet customer needs, which boosts its financial performance. The company is also gaining from expanding operations via acquisitions and organic projects.However, this Zacks Rank #2 (Buy) company faces risks related to the ongoing delay in renewal of its license.

Tailwinds

Nearly 97% of the earth’s water is in oceans. To harness this resource, Consolidated Water utilizes the Reverse Osmosis Technology, one of the most advanced technologies to convert seawater to potable water at all water treatment plants it constructs and operates. This will help the company to boost its performance.Consolidated Water aims to expand its operations in complementary service industries, which will complement its existing business operations. The company will pursue these opportunities either on its own or through joint ventures, strategic alliances and acquisitions. It primarily targets businesses that operate advanced water-treatment plants for the government or government agencies, under medium or long-term contracts.The acquisition of full ownership of PERC Water Corporation (“PERC”) will aid the company in expanding its operations. In addition to synergies with other CWCO business areas and potential developments, PERC's robust operating performance, revenue growth, profitability and growth prospects should improve CWCO's performance.