AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
72.34 USD
+0.11 (+0.15%)
72.34 USD
0 (0%)
Taking everything into account, AWR scores 6 out of 10 in our fundamental rating. AWR was compared to 14 industry peers in the Water Utilities industry. AWR scores excellent on profitability, but there are some minor concerns on its financial health. AWR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year AWR was profitable.
- In the past year AWR had a positive cash flow from operations.
- Each year in the past 5 years AWR has been profitable.
- In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AWR (4.88%) is better than 78.57% of its industry peers.
- With an excellent Return On Equity value of 12.84%, AWR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- AWR has a better Return On Invested Capital (6.19%) than 85.71% of its industry peers.
- AWR had an Average Return On Invested Capital over the past 3 years of 6.15%. This is in line with the industry average of 4.99%.
- The last Return On Invested Capital (6.19%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 12.84% | ||
| ROIC | 6.19% |
ROA(3y)4.71%
ROA(5y)4.78%
ROE(3y)13.33%
ROE(5y)13.42%
ROIC(3y)6.15%
ROIC(5y)6.12%
1.3 Margins
- AWR has a Profit Margin (20.35%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of AWR has grown nicely.
- The Operating Margin of AWR (30.92%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of AWR has grown nicely.
- AWR has a Gross Margin of 81.56%. This is amongst the best in the industry. AWR outperforms 85.71% of its industry peers.
- AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.92% | ||
| PM (TTM) | 20.35% | ||
| GM | 81.56% |
OM growth 3Y3.23%
OM growth 5Y2.98%
PM growth 3Y1.9%
PM growth 5Y2.4%
GM growth 3Y1.3%
GM growth 5Y0.64%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWR is destroying value.
- The number of shares outstanding for AWR has been increased compared to 1 year ago.
- Compared to 5 years ago, AWR has more shares outstanding
- Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.85 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.85, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- AWR has a debt to FCF ratio of 26.20. This is a negative value and a sign of low solvency as AWR would need 26.20 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 26.20, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- A Debt/Equity ratio of 0.91 indicates that AWR is somewhat dependend on debt financing.
- AWR has a Debt to Equity ratio (0.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.75
WACC8.25%
2.3 Liquidity
- AWR has a Current Ratio of 1.27. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of AWR (1.27) is better than 85.71% of its industry peers.
- A Quick Ratio of 1.18 indicates that AWR should not have too much problems paying its short term obligations.
- The Quick ratio of AWR (1.18) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.80% over the past year.
- The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
- Looking at the last year, AWR shows a quite strong growth in Revenue. The Revenue has grown by 10.28% in the last year.
- AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
EPS 1Y (TTM)13.8%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%11.58%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
3.2 Future
- Based on estimates for the next years, AWR will show a small growth in Earnings Per Share. The EPS will grow by 5.90% on average per year.
- The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y5.78%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
EPS Next 5Y5.9%
Revenue Next Year5.66%
Revenue Next 2Y5.19%
Revenue Next 3Y4.76%
Revenue Next 5Y4.34%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- AWR is valuated rather expensively with a Price/Earnings ratio of 21.40.
- AWR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of AWR to the average of the S&P500 Index (28.60), we can say AWR is valued slightly cheaper.
- A Price/Forward Earnings ratio of 20.52 indicates a rather expensive valuation of AWR.
- The rest of the industry has a similar Price/Forward Earnings ratio as AWR.
- When comparing the Price/Forward Earnings ratio of AWR to the average of the S&P500 Index (25.83), we can say AWR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
- AWR's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, AWR is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.19 | ||
| EV/EBITDA | 15.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWR does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)3.7
PEG (5Y)2.59
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
- AWR's Dividend Yield is comparable with the industry average which is at 2.93.
- Compared to an average S&P500 Dividend Yield of 1.82, AWR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
- On average, the dividend of AWR grows each year by 8.98%, which is quite nice.
- AWR has been paying a dividend for at least 10 years, so it has a reliable track record.
- AWR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.98%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 56.10% of the earnings are spent on dividend by AWR. This is a bit on the high side, but may be sustainable.
- AWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.1%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
AMERICAN STATES WATER CO / AWR FAQ
What is the ChartMill fundamental rating of AMERICAN STATES WATER CO (AWR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to AWR.
What is the valuation status of AMERICAN STATES WATER CO (AWR) stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN STATES WATER CO (AWR). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN STATES WATER CO?
AMERICAN STATES WATER CO (AWR) has a profitability rating of 8 / 10.
Can you provide the financial health for AWR stock?
The financial health rating of AMERICAN STATES WATER CO (AWR) is 5 / 10.
What is the expected EPS growth for AMERICAN STATES WATER CO (AWR) stock?
The Earnings per Share (EPS) of AMERICAN STATES WATER CO (AWR) is expected to grow by 5.78% in the next year.