AVISTA CORP (AVA) Stock Fundamental Analysis
USA - NYSE:AVA - US05379B1070 - Common Stock
36.03 USD
-0.36 (-0.99%)
36.03 USD
0 (0%)
Taking everything into account, AVA scores 3 out of 10 in our fundamental rating. AVA was compared to 25 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AVA have multiple concerns. AVA has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally AVA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AVA was profitable.
In the past year AVA had a positive cash flow from operations.
In the past 5 years AVA has always been profitable.
Each year in the past 5 years AVA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.22%, AVA is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
AVA has a Return On Equity of 6.75%. This is amonst the worse of the industry: AVA underperforms 84.00% of its industry peers.
AVA has a Return On Invested Capital of 3.43%. This is in the lower half of the industry: AVA underperforms 76.00% of its industry peers.
AVA had an Average Return On Invested Capital over the past 3 years of 2.73%. This is in line with the industry average of 3.82%.
The 3 year average ROIC (2.73%) for AVA is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.75% | ||
| ROIC | 3.43% |
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
The Profit Margin of AVA (9.14%) is worse than 84.00% of its industry peers.
AVA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.02%, AVA is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 9.14% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVA is destroying value.
The number of shares outstanding for AVA has been increased compared to 1 year ago.
AVA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that AVA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, AVA is in line with its industry, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that AVA has dependencies on debt financing.
The Debt to Equity ratio of AVA (1.17) is better than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.56
WACC6.16%
2.3 Liquidity
AVA has a Current Ratio of 1.00. This is a bad value and indicates that AVA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AVA (1.00) is better than 64.00% of its industry peers.
AVA has a Quick Ratio of 1.00. 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 has a Quick ratio of 0.68. This is comparable to the rest of the industry: AVA outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
AVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.44%.
Measured over the past 5 years, AVA shows a small growth in Earnings Per Share. The EPS has been growing by 2.97% on average per year.
The Revenue has been growing slightly by 2.41% in the past 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)-10.44%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%2.22%
3.2 Future
The Earnings Per Share is expected to grow by 6.96% on average over the next years.
AVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y11.85%
EPS Next 2Y9.96%
EPS Next 3Y8.42%
EPS Next 5Y6.96%
Revenue Next Year7.29%
Revenue Next 2Y5.74%
Revenue Next 3Y4.49%
Revenue Next 5Y4.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
AVA is valuated correctly with a Price/Earnings ratio of 16.16.
AVA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, AVA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.07, the valuation of AVA can be described as correct.
AVA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVA is cheaper than 72.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVA to the average of the S&P500 Index (22.77), we can say AVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVA indicates a somewhat cheap valuation: AVA is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
AVA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)5.45
EPS Next 2Y9.96%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, AVA is a good candidate for dividend investing.
AVA's Dividend Yield is rather good when compared to the industry average which is at 3.64. AVA pays more dividend than 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AVA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.18%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
86.15% of the earnings are spent on dividend by AVA. This is not a sustainable payout ratio.
The dividend of AVA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP86.15%
EPS Next 2Y9.96%
EPS Next 3Y8.42%
36.03
-0.36 (-0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.39%
Inst Owner Change1.21%
Ins Owners0.6%
Ins Owner Change2.86%
Market Cap2.92B
Analysts51.67
Price Target41.82 (16.07%)
Short Float %3.25%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
Yearly Dividend1.9
Dividend Growth(5Y)4.18%
DP86.15%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.99%
Min EPS beat(2)-44.54%
Max EPS beat(2)-5.45%
EPS beat(4)1
Avg EPS beat(4)6.77%
Min EPS beat(4)-44.54%
Max EPS beat(4)79.31%
EPS beat(8)3
Avg EPS beat(8)9.12%
EPS beat(12)5
Avg EPS beat(12)-4.89%
EPS beat(16)8
Avg EPS beat(16)10.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-3.32%
Max Revenue beat(2)-1.09%
Revenue beat(4)2
Avg Revenue beat(4)1.37%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)9.75%
Revenue beat(8)5
Avg Revenue beat(8)4.62%
Revenue beat(12)8
Avg Revenue beat(12)7.17%
Revenue beat(16)11
Avg Revenue beat(16)7.08%
PT rev (1m)-1.8%
PT rev (3m)-2.84%
EPS NQ rev (1m)12.1%
EPS NQ rev (3m)12.91%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)10.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.07 | ||
| P/S | 1.5 | ||
| P/FCF | N/A | ||
| P/OCF | 6.63 | ||
| P/B | 1.1 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 9.41 |
EPS(TTM)2.23
EY6.19%
EPS(NY)2.76
Fwd EY7.65%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)5.44
OCFY15.09%
SpS24.1
BVpS32.61
TBVpS31.97
PEG (NY)1.36
PEG (5Y)5.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.75% | ||
| ROCE | 4.5% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.43% | ||
| ROICexgc | 3.45% | ||
| OM | 17.02% | ||
| PM (TTM) | 9.14% | ||
| GM | N/A | ||
| FCFM | N/A |
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 | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 187.67% | ||
| Cap/Sales | 27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.86 |
F-Score4
WACC6.16%
ROIC/WACC0.56
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)-10.44%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%-41.38%
EPS Next Y11.85%
EPS Next 2Y9.96%
EPS Next 3Y8.42%
EPS Next 5Y6.96%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%2.22%
Revenue Next Year7.29%
Revenue Next 2Y5.74%
Revenue Next 3Y4.49%
Revenue Next 5Y4.25%
EBIT growth 1Y13.65%
EBIT growth 3Y10.27%
EBIT growth 5Y5.87%
EBIT Next Year97.09%
EBIT Next 3Y31.85%
EBIT Next 5YN/A
FCF growth 1Y69.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y134.7%
OCF growth 3Y25.95%
OCF growth 5Y6.04%