AVISTA CORP (AVA) Stock Fundamental Analysis
USA - NYSE:AVA - US05379B1070 - Common Stock
38.87 USD
-0.14 (-0.36%)
38.87 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. AVA has a bad profitability rating. Also its financial health evaluation is rather negative. AVA does not seem to be growing, but still is valued expensively. 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
The Return On Assets of AVA (2.22%) is worse than 76.00% of its industry peers.
AVA has a worse Return On Equity (6.75%) than 84.00% of its industry peers.
With a Return On Invested Capital value of 3.43%, AVA is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
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 last Return On Invested Capital (3.43%) for AVA is above the 3 year average (2.73%), which is a sign of increasing profitability.
| 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
AVA's Profit Margin of 9.14% is on the low side compared to the rest of the industry. AVA is outperformed by 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.
AVA's Operating Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVA is destroying value.
The number of shares outstanding for AVA has been increased compared to 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
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.
Looking at the Altman-Z score, with a value of 0.88, 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.
AVA has a Debt to Equity ratio of 1.17. This is in the better half of the industry: AVA outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.55
WACC6.22%
2.3 Liquidity
A Current Ratio of 1.00 indicates that AVA may have some problems paying its short term obligations.
AVA has a better Current ratio (1.00) 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 (0.68) which is comparable to the rest of the industry.
| 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.
AVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.57% yearly.
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
AVA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y11.23%
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.
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
AVA is valuated rather expensively with a Price/Earnings ratio of 17.43.
The rest of the industry has a similar Price/Earnings ratio as AVA.
AVA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.10 indicates a correct valuation of AVA.
Based on the Price/Forward Earnings ratio, AVA is valued a bit 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 (23.23), we can say AVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 14.1 |
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 | 9.76 |
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)1.55
PEG (5Y)5.88
EPS Next 2Y9.96%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
AVA has a Yearly Dividend Yield of 5.11%, which is a nice return.
AVA's Dividend Yield is rather good when compared to the industry average which is at 3.74. AVA pays more dividend than 88.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AVA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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
AVA pays out 86.15% 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.
DP86.15%
EPS Next 2Y9.96%
EPS Next 3Y8.42%
38.87
-0.14 (-0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.89%
Inst Owner Change-0.37%
Ins Owners0.59%
Ins Owner Change2.89%
Market Cap3.15B
Analysts51.67
Price Target41.82 (7.59%)
Short Float %3.58%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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)0%
PT rev (3m)-2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.35%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 14.1 | ||
| P/S | 1.61 | ||
| P/FCF | N/A | ||
| P/OCF | 7.15 | ||
| P/B | 1.19 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)2.23
EY5.74%
EPS(NY)2.76
Fwd EY7.09%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)5.44
OCFY13.99%
SpS24.1
BVpS32.61
TBVpS31.97
PEG (NY)1.55
PEG (5Y)5.88
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 | 0.88 |
F-Score4
WACC6.22%
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)-10.44%
EPS 3Y2.94%
EPS 5Y2.97%
EPS Q2Q%-41.38%
EPS Next Y11.23%
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%