AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
AWR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. While AWR has a great profitability rating, there are quite some concerns on its financial health. AWR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AWR had positive earnings in the past year.
AWR had a positive operating cash flow in the past year.
In the past 5 years AWR has always been profitable.
Each year in the past 5 years AWR had a positive operating cash flow.
1.2 Ratios
AWR has a better Return On Assets (4.75%) than 78.57% of its industry peers.
AWR's Return On Equity of 12.92% is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
The Return On Invested Capital of AWR (6.11%) is better than 78.57% 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 5.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.92% | ||
| ROIC | 6.11% |
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
With a Profit Margin value of 19.96%, AWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AWR has grown nicely.
AWR's Operating Margin of 30.98% is in line compared to the rest of the industry. AWR outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of AWR has grown nicely.
With an excellent Gross Margin value of 83.05%, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.98% | ||
| PM (TTM) | 19.96% | ||
| GM | 83.05% |
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.
AWR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AWR has more shares outstanding
AWR has a better debt/assets ratio than last year.
2.2 Solvency
AWR has an Altman-Z score of 1.87. This is not the best score and indicates that AWR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of AWR (1.87) is better than 78.57% of its industry peers.
AWR has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AWR (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.77
WACC7.98%
2.3 Liquidity
A Current Ratio of 0.82 indicates that AWR may have some problems paying its short term obligations.
AWR has a Current ratio (0.82) which is comparable to the rest of the industry.
AWR has a Quick Ratio of 0.82. This is a bad value and indicates that AWR is not financially healthy enough and could expect problems in meeting its short term obligations.
AWR has a Quick ratio of 0.76. This is comparable to the rest of the industry: AWR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.01% over the past year.
Measured over the past years, AWR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.28% on average per year.
AWR shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
EPS 1Y (TTM)12.01%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%36.36%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%14.31%
3.2 Future
The Earnings Per Share is expected to grow by 6.25% on average over the next years.
Based on estimates for the next years, AWR will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y5.78%
EPS Next 2Y5.9%
EPS Next 3Y6.11%
EPS Next 5Y6.25%
Revenue Next Year7.08%
Revenue Next 2Y4.32%
Revenue Next 3Y4.51%
Revenue Next 5Y4.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AWR is valuated rather expensively with a Price/Earnings ratio of 24.65.
AWR's Price/Earnings ratio is a bit more expensive when compared to the industry. AWR is more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, AWR is valued at the same level.
A Price/Forward Earnings ratio of 23.30 indicates a rather expensive valuation of AWR.
The rest of the industry has a similar Price/Forward Earnings ratio as AWR.
AWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 23.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWR is valued a bit more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AWR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.26
PEG (5Y)2.98
EPS Next 2Y5.9%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.42, AWR has a dividend in line with its industry peers.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
56.39% of the earnings are spent on dividend by AWR. This is a bit on the high side, but may be sustainable.
The dividend of AWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.39%
EPS Next 2Y5.9%
EPS Next 3Y6.11%
78.13
+1.59 (+2.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change2.3%
Ins Owners0.83%
Ins Owner Change-0.28%
Market Cap2.95B
Analysts50.91
Price Target81.26 (4.01%)
Short Float %1.92%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.55%
Min EPS beat(2)-4.02%
Max EPS beat(2)15.13%
EPS beat(4)1
Avg EPS beat(4)1.71%
Min EPS beat(4)-4.02%
Max EPS beat(4)15.13%
EPS beat(8)5
Avg EPS beat(8)3.22%
EPS beat(12)5
Avg EPS beat(12)-5.77%
EPS beat(16)8
Avg EPS beat(16)-2.31%
Revenue beat(2)1
Avg Revenue beat(2)5.97%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)12.45%
Revenue beat(4)3
Avg Revenue beat(4)8.98%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)12.53%
Revenue beat(8)5
Avg Revenue beat(8)11.48%
Revenue beat(12)5
Avg Revenue beat(12)4.36%
Revenue beat(16)8
Avg Revenue beat(16)4.12%
PT rev (1m)-5.53%
PT rev (3m)-8.95%
EPS NQ rev (1m)0.99%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 23.3 | ||
| P/S | 4.96 | ||
| P/FCF | N/A | ||
| P/OCF | 14.86 | ||
| P/B | 3.21 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 16.06 |
EPS(TTM)3.17
EY4.06%
EPS(NY)3.35
Fwd EY4.29%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)5.26
OCFY6.73%
SpS15.75
BVpS24.34
TBVpS24.34
PEG (NY)4.26
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.92% | ||
| ROCE | 8.33% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.18% | ||
| OM | 30.98% | ||
| PM (TTM) | 19.96% | ||
| GM | 83.05% | ||
| FCFM | N/A |
ROA(3y)4.71%
ROA(5y)4.78%
ROE(3y)13.33%
ROE(5y)13.42%
ROIC(3y)6.15%
ROIC(5y)6.12%
ROICexc(3y)6.21%
ROICexc(5y)6.19%
ROICexgc(3y)6.21%
ROICexgc(5y)6.19%
ROCE(3y)8.5%
ROCE(5y)8.27%
ROICexcg growth 3Y0.1%
ROICexcg growth 5Y-0.78%
ROICexc growth 3Y0.12%
ROICexc growth 5Y-0.77%
OM growth 3Y3.23%
OM growth 5Y2.98%
PM growth 3Y1.9%
PM growth 5Y2.4%
GM growth 3Y1.3%
GM growth 5Y0.64%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 524.49% | ||
| Cap/Sales | 38.95% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 86.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.87 |
F-Score4
WACC7.98%
ROIC/WACC0.77
Cap/Depr(3y)452.98%
Cap/Depr(5y)414.15%
Cap/Sales(3y)34.81%
Cap/Sales(5y)32.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.01%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%36.36%
EPS Next Y5.78%
EPS Next 2Y5.9%
EPS Next 3Y6.11%
EPS Next 5Y6.25%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%14.31%
Revenue Next Year7.08%
Revenue Next 2Y4.32%
Revenue Next 3Y4.51%
Revenue Next 5Y4.46%
EBIT growth 1Y-6.2%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year41.69%
EBIT Next 3Y16.12%
EBIT Next 5Y13.9%
FCF growth 1Y72.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y193.62%
OCF growth 3Y19.79%
OCF growth 5Y11.2%