AVISTA CORP (AVA) Stock Fundamental Analysis
NYSE:AVA - New York Stock Exchange, Inc. - US05379B1070 - Common Stock - Currency: USD
Overall AVA gets a fundamental rating of 4 out of 10. We evaluated AVA against 25 industry peers in the Multi-Utilities industry. The financial health of AVA is average, but there are quite some concerns on its profitability. AVA is not valued too expensively and it also shows a decent growth rate. Finally AVA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AVA had positive earnings in the past year.
In the past year AVA had a positive cash flow from operations.
In the past 5 years AVA has always been profitable.
AVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVA has a Return On Assets of 2.27%. This is in the lower half of the industry: AVA underperforms 76.00% of its industry peers.
AVA's Return On Equity of 6.95% is on the low side compared to the rest of the industry. AVA is outperformed by 80.00% of its industry peers.
AVA's Return On Invested Capital of 3.21% is on the low side compared to the rest of the industry. AVA is outperformed by 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVA is in line with the industry average of 3.76%.
The 3 year average ROIC (2.73%) for AVA is below the current ROIC(3.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.95% | ||
| ROIC | 3.21% |
ROA(3y)2.19%
ROA(5y)2.15%
ROE(3y)6.83%
ROE(5y)6.74%
ROIC(3y)2.73%
ROIC(5y)2.82%
1.3 Margins
With a Profit Margin value of 9.29%, AVA is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
AVA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.79%, AVA is doing worse than 96.00% of the companies in the same industry.
AVA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.79% | ||
| PM (TTM) | 9.29% | ||
| GM | N/A |
OM growth 3Y-0.15%
OM growth 5Y-1.58%
PM growth 3Y-3.19%
PM growth 5Y-8.7%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AVA has more shares outstanding
Compared to 5 years ago, AVA has more shares outstanding
The debt/assets ratio for AVA has been reduced compared to a year ago.
2.2 Solvency
AVA has an Altman-Z score of 0.88. This is a bad value and indicates that AVA is not financially healthy and even has some risk of bankruptcy.
AVA has a better Altman-Z score (0.88) than 64.00% of its industry peers.
AVA has a debt to FCF ratio of 3055.00. This is a negative value and a sign of low solvency as AVA would need 3055.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3055.00, AVA belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that AVA has dependencies on debt financing.
AVA has a Debt to Equity ratio of 1.18. This is amongst the best in the industry. AVA outperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3055 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.49
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.85 indicates that AVA may have some problems paying its short term obligations.
AVA has a better Current ratio (0.85) than 84.00% of its industry peers.
A Quick Ratio of 0.60 indicates that AVA may have some problems paying its short term obligations.
The Quick ratio of AVA (0.60) is better than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
AVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
AVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.97% yearly.
Looking at the last year, AVA shows a quite strong growth in Revenue. The Revenue has grown by 10.65% in the last year.
Measured over the past years, AVA shows a small growth in Revenue. The Revenue has been growing by 7.57% on average per year.
EPS 1Y (TTM)1.33%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%-22.73%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, AVA will show a small growth in Earnings Per Share. The EPS will grow by 6.27% on average per year.
Based on estimates for the next years, AVA will show a small growth in Revenue. The Revenue will grow by 1.39% on average per year.
EPS Next Y13.29%
EPS Next 2Y10.27%
EPS Next 3Y8.39%
EPS Next 5Y6.27%
Revenue Next Year1.7%
Revenue Next 2Y2.94%
Revenue Next 3Y2.42%
Revenue Next 5Y1.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.21, the valuation of AVA can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AVA.
When comparing the Price/Earnings ratio of AVA to the average of the S&P500 Index (28.64), we can say AVA is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.07, which indicates a correct valuation of AVA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, AVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVA.
Based on the Price/Free Cash Flow ratio, AVA is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3332.82 | ||
| EV/EBITDA | 10.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.37
PEG (5Y)6.14
EPS Next 2Y10.27%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
AVA has a Yearly Dividend Yield of 4.68%, which is a nice return.
AVA's Dividend Yield is a higher than the industry average which is at 3.70.
AVA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
The dividend of AVA has a limited annual growth rate of 4.18%.
AVA has paid a dividend for at least 10 years, which is a reliable track record.
AVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.18%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
AVA pays out 83.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AVA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP83.33%
EPS Next 2Y10.27%
EPS Next 3Y8.39%
41.51
-0.35 (-0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.28%
Inst Owner Change0.34%
Ins Owners0.8%
Ins Owner Change7.64%
Market Cap3.33B
Analysts52.31
Price Target41.41 (-0.24%)
Short Float %3.62%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend1.9
Dividend Growth(5Y)4.18%
DP83.33%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.53%
Min EPS beat(2)-2.26%
Max EPS beat(2)79.31%
EPS beat(4)2
Avg EPS beat(4)23.59%
Min EPS beat(4)-10.32%
Max EPS beat(4)79.31%
EPS beat(8)4
Avg EPS beat(8)14.87%
EPS beat(12)6
Avg EPS beat(12)-0.58%
EPS beat(16)9
Avg EPS beat(16)12.68%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)0.14%
Max Revenue beat(2)9.75%
Revenue beat(4)4
Avg Revenue beat(4)10.35%
Min Revenue beat(4)0.14%
Max Revenue beat(4)28.56%
Revenue beat(8)6
Avg Revenue beat(8)4.98%
Revenue beat(12)10
Avg Revenue beat(12)9.81%
Revenue beat(16)11
Avg Revenue beat(16)7.24%
PT rev (1m)2.53%
PT rev (3m)3.05%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)2.76%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)1%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.07 | ||
| P/S | 1.72 | ||
| P/FCF | 3332.82 | ||
| P/OCF | 6.24 | ||
| P/B | 1.29 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 10.4 |
EPS(TTM)2.28
EY5.49%
EPS(NY)2.58
Fwd EY6.22%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)6.65
OCFY16.02%
SpS24.14
BVpS32.27
TBVpS31.62
PEG (NY)1.37
PEG (5Y)6.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.95% | ||
| ROCE | 4.27% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.23% | ||
| ROICexgc | 3.25% | ||
| OM | 15.79% | ||
| PM (TTM) | 9.29% | ||
| GM | N/A | ||
| FCFM | 0.05% |
ROA(3y)2.19%
ROA(5y)2.15%
ROE(3y)6.83%
ROE(5y)6.74%
ROIC(3y)2.73%
ROIC(5y)2.82%
ROICexc(3y)2.74%
ROICexc(5y)2.83%
ROICexgc(3y)2.76%
ROICexgc(5y)2.85%
ROCE(3y)3.65%
ROCE(5y)3.74%
ROICexcg growth 3Y3.49%
ROICexcg growth 5Y0.28%
ROICexc growth 3Y3.54%
ROICexc growth 5Y0.32%
OM growth 3Y-0.15%
OM growth 5Y-1.58%
PM growth 3Y-3.19%
PM growth 5Y-8.7%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3055 | ||
| Debt/EBITDA | 5.27 | ||
| Cap/Depr | 194.53% | ||
| Cap/Sales | 27.5% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 92.07% | ||
| Profit Quality | 0.56% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.88 |
F-Score5
WACC6.5%
ROIC/WACC0.49
Cap/Depr(3y)187%
Cap/Depr(5y)186.15%
Cap/Sales(3y)27.47%
Cap/Sales(5y)28.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.33%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%-22.73%
EPS Next Y13.29%
EPS Next 2Y10.27%
EPS Next 3Y8.39%
EPS Next 5Y6.27%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%2.98%
Revenue Next Year1.7%
Revenue Next 2Y2.94%
Revenue Next 3Y2.42%
Revenue Next 5Y1.39%
EBIT growth 1Y18.75%
EBIT growth 3Y10.27%
EBIT growth 5Y5.87%
EBIT Next Year97.09%
EBIT Next 3Y31.85%
EBIT Next 5YN/A
FCF growth 1Y101.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.44%
OCF growth 3Y25.95%
OCF growth 5Y6.04%