AVISTA CORP (AVA) Stock Fundamental Analysis
NYSE:AVA - New York Stock Exchange, Inc. - US05379B1070 - Common Stock - Currency: USD
AVA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. AVA may be in some trouble as it scores bad on both profitability and health. AVA is quite expensive at the moment. It does show a decent growth rate. AVA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AVA was profitable.
AVA had a positive operating cash flow in the past year.
Each year in the past 5 years AVA has been profitable.
In the past 5 years AVA always reported a positive cash flow from operatings.
1.2 Ratios
AVA has a worse Return On Assets (2.53%) than 68.00% of its industry peers.
AVA's Return On Equity of 7.79% is on the low side compared to the rest of the industry. AVA is outperformed by 80.00% of its industry peers.
AVA has a Return On Invested Capital of 3.25%. This is in the lower half of the industry: AVA underperforms 76.00% 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 3.68%.
The 3 year average ROIC (2.62%) for AVA is below the current ROIC(3.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 7.79% | ||
| ROIC | 3.25% |
ROA(3y)2.15%
ROA(5y)2.35%
ROE(3y)6.79%
ROE(5y)7.38%
ROIC(3y)2.62%
ROIC(5y)2.81%
1.3 Margins
The Profit Margin of AVA (10.25%) is worse than 76.00% of its industry peers.
In the last couple of years the Profit Margin of AVA has remained more or less at the same level.
AVA has a Operating Margin of 15.78%. This is amonst the worse of the industry: AVA underperforms 96.00% of its industry peers.
AVA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | 10.25% | ||
| GM | N/A |
OM growth 3Y-5.81%
OM growth 5Y-4.94%
PM growth 3Y-0.08%
PM growth 5Y0.02%
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.
Compared to 5 years ago, AVA has more shares outstanding
Compared to 1 year ago, AVA has a worse debt to assets ratio.
2.2 Solvency
AVA has an Altman-Z score of 0.84. This is a bad value and indicates that AVA is not financially healthy and even has some risk of bankruptcy.
AVA has a Altman-Z score (0.84) which is comparable to the rest of the industry.
AVA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
AVA has a better Debt to Equity ratio (1.18) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.51
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.75 indicates that AVA may have some problems paying its short term obligations.
AVA has a Current ratio (0.75) which is in line with its industry peers.
AVA has a Quick Ratio of 0.75. This is a bad value and indicates that AVA is not financially healthy enough and could expect problems in meeting its short term obligations.
AVA's Quick ratio of 0.48 is in line compared to the rest of the industry. AVA outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
AVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.00%, which is quite good.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
AVA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
AVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.63% yearly.
EPS 1Y (TTM)15%
EPS 3Y5.8%
EPS 5Y1.68%
EPS Q2Q%21.05%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.84%
Revenue growth 5Y4.63%
Sales Q2Q%3.72%
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 5.85% on average per year.
Based on estimates for the next years, AVA will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y3.48%
EPS Next 2Y5.7%
EPS Next 3Y6.91%
EPS Next 5Y5.85%
Revenue Next Year4.62%
Revenue Next 2Y2.64%
Revenue Next 3Y2.76%
Revenue Next 5Y3.32%
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
With a Price/Earnings ratio of 15.21, AVA is valued correctly.
Based on the Price/Earnings ratio, AVA is valued a bit cheaper than 64.00% of the companies in the same industry.
AVA is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.30, AVA is valued correctly.
AVA's Price/Forward Earnings is on the same level as the industry average.
AVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVA is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.36
PEG (5Y)9.04
EPS Next 2Y5.7%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, AVA is a good candidate for dividend investing.
AVA's Dividend Yield is rather good when compared to the industry average which is at 3.75. AVA pays more dividend than 88.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, AVA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
The dividend of AVA has a limited annual growth rate of 4.24%.
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)4.24%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
AVA pays out 75.24% of its income as dividend. This is not a sustainable payout ratio.
AVA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.24%
EPS Next 2Y5.7%
EPS Next 3Y6.91%
NYSE:AVA (2/24/2025, 11:03:49 AM)
38.47
+0.53 (+1.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.28%
Inst Owner Change-92.77%
Ins Owners0.8%
Ins Owner Change8.51%
Market Cap3.05B
Analysts52.31
Price Target40.39 (4.99%)
Short Float %3.54%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend1.84
Dividend Growth(5Y)4.24%
DP75.24%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.46%
Min EPS beat(2)27.61%
Max EPS beat(2)79.31%
EPS beat(4)2
Avg EPS beat(4)23.13%
Min EPS beat(4)-10.32%
Max EPS beat(4)79.31%
EPS beat(8)5
Avg EPS beat(8)19.21%
EPS beat(12)7
Avg EPS beat(12)0%
EPS beat(16)10
Avg EPS beat(16)13.2%
Revenue beat(2)2
Avg Revenue beat(2)1.54%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.95%
Revenue beat(4)3
Avg Revenue beat(4)6.38%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)28.56%
Revenue beat(8)6
Avg Revenue beat(8)8.25%
Revenue beat(12)9
Avg Revenue beat(12)8.93%
Revenue beat(16)10
Avg Revenue beat(16)5.98%
PT rev (1m)0.51%
PT rev (3m)0.89%
EPS NQ rev (1m)-15.11%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-2.27%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 15.3 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | 6.12 | ||
| P/B | 1.2 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 9.92 |
EPS(TTM)2.53
EY6.58%
EPS(NY)2.51
Fwd EY6.53%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)6.29
OCFY16.35%
SpS24.28
BVpS31.93
TBVpS31.27
PEG (NY)4.36
PEG (5Y)9.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 7.79% | ||
| ROCE | 4.28% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.26% | ||
| ROICexgc | 3.28% | ||
| OM | 15.78% | ||
| PM (TTM) | 10.25% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.15%
ROA(5y)2.35%
ROE(3y)6.79%
ROE(5y)7.38%
ROIC(3y)2.62%
ROIC(5y)2.81%
ROICexc(3y)2.63%
ROICexc(5y)2.82%
ROICexgc(3y)2.65%
ROICexgc(5y)2.84%
ROCE(3y)3.5%
ROCE(5y)3.72%
ROICexcg growth 3Y-2.41%
ROICexcg growth 5Y-6.57%
ROICexc growth 3Y-2.37%
ROICexc growth 5Y-6.5%
OM growth 3Y-5.81%
OM growth 5Y-4.94%
PM growth 3Y-0.08%
PM growth 5Y0.02%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 201.2% | ||
| Cap/Sales | 28.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.84 |
F-Score7
WACC6.35%
ROIC/WACC0.51
Cap/Depr(3y)185.3%
Cap/Depr(5y)190.21%
Cap/Sales(3y)28.49%
Cap/Sales(5y)29.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15%
EPS 3Y5.8%
EPS 5Y1.68%
EPS Q2Q%21.05%
EPS Next Y3.48%
EPS Next 2Y5.7%
EPS Next 3Y6.91%
EPS Next 5Y5.85%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.84%
Revenue growth 5Y4.63%
Sales Q2Q%3.72%
Revenue Next Year4.62%
Revenue Next 2Y2.64%
Revenue Next 3Y2.76%
Revenue Next 5Y3.32%
EBIT growth 1Y36.58%
EBIT growth 3Y3.46%
EBIT growth 5Y-0.54%
EBIT Next Year99.39%
EBIT Next 3Y31.9%
EBIT Next 5YN/A
FCF growth 1Y76.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y100.16%
OCF growth 3Y10.54%
OCF growth 5Y4.32%