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China Water Affairs Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
China Water Affairs Group Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
China Water Affairs Group's Interest Coverage for the quarter that ended in Mar. 2026 was 3.65.
China Water Affairs Group's debt to revenue ratio for the quarter that ended in Mar. 2026 was 2.58.
As of today, China Water Affairs Group's Altman Z-Score is 0.56.
China Water Affairs Group (OTCPK:CWAFF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
China Water Affairs Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
China Water Affairs Group Financial Strength Related Terms
CWAFF vs AWK, WTRG, AWR: Financial Strength Comparison
For the Utilities - Regulated Water subindustry, China Water Affairs Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Water Affairs Group Financial Strength vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Affairs Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Water Affairs Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
China Water Affairs Group has a Z-score of 0.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.56 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Water Affairs Group (CWAFF) has a Financial Strength of 3 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Water Affairs Group and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, China Water Affairs Group's Financial Strength has ranged from 3.00 to 5.00.
Is China Water Affairs Group's Financial Strength too high?
China Water Affairs Group's current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. Overall, China Water Affairs Group has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does China Water Affairs Group's Financial Strength compare to AWK and WTRG?
China Water Affairs Group's Financial Strength of 3 can be compared against companies in the Utilities - Regulated industry. Historically, China Water Affairs Group's own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Utilities - Regulated company?
A good Financial Strength depends on the Utilities - Regulated industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Water Affairs Group and its competitors. China Water Affairs Group's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Affairs Group stock overvalued right now?
China Water Affairs Group (CWAFF) has a current Financial Strength of 3. The stock's GF Value™ is $0.60, compared to a current price of $0.62 — trading 3.3% above its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. China Water Affairs Group's overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For China Water Affairs Group (CWAFF), the current Financial Strength is 3 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Water Affairs Group (CWAFF) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Affairs Group stock appears to be overvalued.
The current stock price of $0.62 is trading 3.3% above its estimated GF Value™ of $0.60.
Key valuation signals for CWAFF:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: $0.60 vs. price of $0.62 (3.3% above fair value)
No single metric tells the full story. See the CWAFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Water Affairs Group Ltd is a Chinese water utility company that builds, operates, and invests in water affairs projects in China. The firm's primary segments include City water supply operation, main contractor construction, Environmental protection, and Pipeline direct drinking water supply. It generates a majority of its revenue from the City water supply operation segment. Geographically, the company generates a maximum share of its revenue from the People's Republic of China.
71GF Score
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