Financial Analysis: Manila Water (MWTCY) & The Competition

Dividends

Manila Water pays an annual dividend of C$6.40 per share and has a dividend yield of 41.5%. Manila Water pays out 10.9% of its earnings in the form of a dividend. As a group, “Water Utilities” companies pay a dividend yield of 4.2% and pay out 84.1% of their earnings in the form of a dividend. Manila Water is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.0% of Manila Water shares are owned by institutional investors. Comparatively, 57.7% of shares of all “Water Utilities” companies are owned by institutional investors. 7.7% of shares of all “Water Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Manila Water and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Manila Water	N/A	N/A	0.26
Manila Water Competitors	$4.33 billion	$270.20 million	15.00

Manila Water’s rivals have higher revenue and earnings than Manila Water. Manila Water is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Manila Water and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manila Water	N/A	N/A	N/A
Manila Water Competitors	4.68%	3.13%	1.99%

Summary

Manila Water rivals beat Manila Water on 7 of the 9 factors compared.

Manila Water Company Profile

Manila Water Company, Inc., together with its subsidiaries, provides water treatment and distribution, sewerage, and sanitation services in the Philippines and internationally. The company offers integrated used water, pipework, engineering, procurement, and management services. It also provides its services to people in the East Zone encompassing cities and municipalities, including Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, and Manila, as well as Rizal towns comprising Angono, Antipolo, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay, and Teresa. The company serves residential, commercial, semi-business, and industrial customers. Manila Water Company, Inc. was incorporated in 1997 and is based in Quezon City, the Philippines.