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. Both the profitability and financial health of AVA have multiple concerns. AVA is valued correctly, but it does not seem to be growing. 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.
Each year in the past 5 years AVA has been profitable.
AVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVA has a worse Return On Assets (2.35%) than 76.00% of its industry peers.
AVA has a Return On Equity of 7.08%. This is amonst the worse of the industry: AVA underperforms 84.00% of its industry peers.
AVA's Return On Invested Capital of 3.46% is on the low side compared to the rest of the industry. AVA is outperformed by 84.00% 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 3.93%.
The last Return On Invested Capital (3.46%) for AVA is above the 3 year average (2.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 7.08% | ||
| ROIC | 3.46% |
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
Looking at the Profit Margin, with a value of 9.64%, AVA is doing worse than 84.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AVA has declined.
AVA has a worse Operating Margin (16.96%) than 80.00% of its industry peers.
AVA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.96% | ||
| PM (TTM) | 9.64% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVA is destroying value.
AVA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AVA has been increased compared to 5 years ago.
AVA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that AVA is in the distress zone and 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 282.52. This is a negative value and a sign of low solvency as AVA would need 282.52 years to pay back of all of its debts.
AVA has a Debt to FCF ratio of 282.52. This is amongst the best in the industry. AVA outperforms 92.00% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that AVA has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.13, AVA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 282.52 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.55
WACC6.32%
2.3 Liquidity
A Current Ratio of 0.93 indicates that AVA may have some problems paying its short term obligations.
AVA has a Current ratio of 0.93. This is comparable to the rest of the industry: AVA outperforms 60.00% of its industry peers.
A Quick Ratio of 0.64 indicates that AVA may have some problems paying its short term obligations.
The Quick ratio of AVA (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for AVA have decreased by -3.29% in the last year.
AVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.97% yearly.
AVA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.14%.
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)-3.29%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%7.69%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%1.24%
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 6.89% on average per year.
AVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y12.69%
EPS Next 2Y10.01%
EPS Next 3Y8.3%
EPS Next 5Y6.89%
Revenue Next Year0%
Revenue Next 2Y1.95%
Revenue Next 3Y2.44%
Revenue Next 5Y4.43%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.32, the valuation of AVA can be described as correct.
AVA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AVA is valued a bit cheaper.
AVA is valuated correctly with a Price/Forward Earnings ratio of 13.90.
The rest of the industry has a similar Price/Forward Earnings ratio as AVA.
When comparing the Price/Forward Earnings ratio of AVA to the average of the S&P500 Index (21.90), we can say AVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVA is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
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 | 292.59 | ||
| EV/EBITDA | 9.47 |
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)1.29
PEG (5Y)5.5
EPS Next 2Y10.01%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
AVA has a Yearly Dividend Yield of 5.20%, which is a nice return.
AVA's Dividend Yield is rather good when compared to the industry average which is at 4.00. AVA pays more dividend than 88.00% of the companies in the same industry.
AVA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
The dividend of AVA has a limited annual growth rate of 4.18%.
AVA has been paying a dividend for at least 10 years, so it has 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 81.16% 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.
DP81.16%
EPS Next 2Y10.01%
EPS Next 3Y8.3%
38.36
+0.26 (+0.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.74%
Inst Owner Change-1.33%
Ins Owners0.6%
Ins Owner Change10.21%
Market Cap3.09B
Analysts52.31
Price Target42.23 (10.09%)
Short Float %3.97%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend1.9
Dividend Growth(5Y)4.18%
DP81.16%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.85%
Min EPS beat(2)-5.45%
Max EPS beat(2)-2.26%
EPS beat(4)2
Avg EPS beat(4)24.8%
Min EPS beat(4)-5.45%
Max EPS beat(4)79.31%
EPS beat(8)4
Avg EPS beat(8)18.88%
EPS beat(12)5
Avg EPS beat(12)-1.65%
EPS beat(16)8
Avg EPS beat(16)11.39%
Revenue beat(2)1
Avg Revenue beat(2)3.22%
Min Revenue beat(2)-3.32%
Max Revenue beat(2)9.75%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)9.75%
Revenue beat(8)6
Avg Revenue beat(8)4.96%
Revenue beat(12)9
Avg Revenue beat(12)8.94%
Revenue beat(16)11
Avg Revenue beat(16)7.05%
PT rev (1m)-1.9%
PT rev (3m)4.02%
EPS NQ rev (1m)-5.65%
EPS NQ rev (3m)17.07%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)2.62%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 13.9 | ||
| P/S | 1.59 | ||
| P/FCF | 292.59 | ||
| P/OCF | 5.85 | ||
| P/B | 1.17 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)2.35
EY6.13%
EPS(NY)2.76
Fwd EY7.19%
FCF(TTM)0.13
FCFY0.34%
OCF(TTM)6.55
OCFY17.08%
SpS24.15
BVpS32.88
TBVpS32.24
PEG (NY)1.29
PEG (5Y)5.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 7.08% | ||
| ROCE | 4.55% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.49% | ||
| OM | 16.96% | ||
| PM (TTM) | 9.64% | ||
| GM | N/A | ||
| FCFM | 0.54% |
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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 282.52 | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 186.7% | ||
| Cap/Sales | 26.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.97% | ||
| Profit Quality | 5.63% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.88 |
F-Score4
WACC6.32%
ROIC/WACC0.55
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)-3.29%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%7.69%
EPS Next Y12.69%
EPS Next 2Y10.01%
EPS Next 3Y8.3%
EPS Next 5Y6.89%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%1.24%
Revenue Next Year0%
Revenue Next 2Y1.95%
Revenue Next 3Y2.44%
Revenue Next 5Y4.43%
EBIT growth 1Y16.89%
EBIT growth 3Y10.27%
EBIT growth 5Y5.87%
EBIT Next Year97.09%
EBIT Next 3Y31.85%
EBIT Next 5YN/A
FCF growth 1Y102.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y834.25%
OCF growth 3Y25.95%
OCF growth 5Y6.04%