Risks for SJW GROUP (SJW)

Here are some interesting risks from the recent filings of SJW GROUP. Our algorithms work hard to highlight risks unique to this company.

Our business is regulated and may be adversely affected by changes to the regulatory environment.

Fluctuations in customer demand for water due to seasonality, restrictions of use, weather, and lifestyle can adversely affect operating results.

Water Utility Services rely on information technology and systems that are key to business operations. A system malfunction, security breach, cyber attacks or other disruptions could compromise our information and expose us to liability, which could adversely affect business operations.

The water utility business requires significant capital expenditures that are dependent on our ability to secure appropriate funding. If SJW Group is unable to generate sufficient operating cash flows and obtain sufficient capital or if the rates at which we borrow increase, there would be a negative impact on our results of operations.

We operate in areas subject to natural disasters or that may be the target of terrorist activities.