AVISTA CORP (AVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVA - US05379B1070 - Common Stock
40.24 USD
+0.2 (+0.5%)
40.24 USD
0 (0%)
Taking everything into account, AVA scores 3 out of 10 in our fundamental rating. AVA was compared to 26 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AVA have multiple concerns. AVA is valued expensive and it does not seem to be growing. 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.
- 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
- With a Return On Assets value of 2.32%, AVA is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- AVA has a Return On Equity of 7.15%. This is in the lower half of the industry: AVA underperforms 76.92% of its industry peers.
- AVA has a Return On Invested Capital of 3.52%. This is amonst the worse of the industry: AVA underperforms 80.77% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AVA is in line with the industry average of 3.94%.
- The last Return On Invested Capital (3.52%) for AVA is above the 3 year average (2.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 7.15% | ||
| ROIC | 3.52% |
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
- AVA has a worse Profit Margin (9.63%) than 61.54% of its industry peers.
- AVA's Profit Margin has declined in the last couple of years.
- AVA's Operating Margin of 17.51% is on the low side compared to the rest of the industry. AVA is outperformed by 76.92% of its industry peers.
- AVA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.51% | ||
| PM (TTM) | 9.63% | ||
| 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.
- Compared to 1 year ago, AVA has more shares outstanding
- 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's Altman-Z score of 0.88 is in line compared to the rest of the industry. AVA outperforms 53.85% of its industry peers.
- AVA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 1.18, AVA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.55
WACC6.39%
2.3 Liquidity
- AVA has a Current Ratio of 0.91. 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 Current ratio of 0.91 is in line compared to the rest of the industry. AVA outperforms 50.00% 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 worse than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- AVA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.72%.
- 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.
- AVA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.14%.
- AVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.57% yearly.
EPS 1Y (TTM)-6.72%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%56.52%
Revenue 1Y (TTM)2.14%
Revenue growth 3Y10.44%
Revenue growth 5Y7.57%
Sales Q2Q%2.35%
3.2 Future
- AVA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.43% yearly.
- AVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.95% yearly.
EPS Next Y11.04%
EPS Next 2Y10.79%
EPS Next 3Y8.48%
EPS Next 5Y7.43%
Revenue Next Year4.57%
Revenue Next 2Y0.61%
Revenue Next 3Y1.88%
Revenue Next 5Y2.95%
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
- The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of AVA.
- AVA's Price/Earnings ratio is a bit cheaper when compared to the industry. AVA is cheaper than 61.54% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. AVA is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 14.38, the valuation of AVA can be described as correct.
- Based on the Price/Forward Earnings ratio, AVA is valued a bit cheaper than 65.38% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AVA to the average of the S&P500 Index (25.98), we can say AVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are more expensive than AVA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.63 |
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)1.54
PEG (5Y)5.75
EPS Next 2Y10.79%
EPS Next 3Y8.48%
5. Dividend
5.1 Amount
- AVA has a Yearly Dividend Yield of 4.83%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.77, AVA pays a better dividend. On top of this AVA pays more dividend than 88.46% of the companies listed in the same industry.
- AVA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
- 82.75% of the earnings are spent on dividend by AVA. This is not a sustainable payout ratio.
- AVA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.75%
EPS Next 2Y10.79%
EPS Next 3Y8.48%
AVISTA CORP / AVA FAQ
Can you provide the ChartMill fundamental rating for AVISTA CORP?
ChartMill assigns a fundamental rating of 3 / 10 to AVA.
Can you provide the valuation status for AVISTA CORP?
ChartMill assigns a valuation rating of 3 / 10 to AVISTA CORP (AVA). This can be considered as Overvalued.
How profitable is AVISTA CORP (AVA) stock?
AVISTA CORP (AVA) has a profitability rating of 3 / 10.
How financially healthy is AVISTA CORP?
The financial health rating of AVISTA CORP (AVA) is 1 / 10.
Can you provide the expected EPS growth for AVA stock?
The Earnings per Share (EPS) of AVISTA CORP (AVA) is expected to grow by 11.04% in the next year.