AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AWR • US0298991011
72.96 USD
+0.62 (+0.86%)
At close: Jan 30, 2026
72.96 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to AWR. AWR was compared to 14 industry peers in the Water Utilities industry. AWR has an excellent profitability rating, but there are some minor concerns on its financial health. AWR has a correct valuation and a medium 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.
- AWR had positive earnings in each of the past 5 years.
- In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.88%, AWR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- 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 3 year average ROIC (6.15%) for AWR is below the current ROIC(6.19%), indicating increased profibility in the last year.
| 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's Profit Margin of 20.35% 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 Profit Margin of AWR has grown nicely.
- With a Operating Margin value of 30.92%, AWR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Operating Margin of AWR has grown nicely.
- With an excellent Gross Margin value of 81.56%, 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 | 30.92% | ||
| 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
- AWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for AWR has been increased compared to 1 year ago.
- AWR has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AWR has been reduced compared to a year ago.
2.2 Solvency
- AWR has an Altman-Z score of 1.85. 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.
- AWR has a better Altman-Z score (1.85) than 78.57% of its industry peers.
- The Debt to FCF ratio of AWR is 26.20, which is on the high side as it means it would take AWR, 26.20 years of fcf income to pay off all of its debts.
- AWR has a better Debt to FCF ratio (26.20) than 85.71% of its industry peers.
- A Debt/Equity ratio of 0.91 indicates that AWR is somewhat dependend on debt financing.
- AWR has a Debt to Equity ratio of 0.91. This is comparable to the rest of the industry: AWR outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.75
WACC8.24%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that AWR should not have too much problems paying 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.
- AWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.28% yearly.
- Looking at the last year, AWR shows a quite strong growth in Revenue. The Revenue has grown by 10.28% in the last year.
- The Revenue has been growing slightly by 4.67% on average over the past years.
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
- The Earnings Per Share is expected to grow by 5.90% 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 4.34% on average per year.
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
- A Price/Earnings ratio of 21.59 indicates a rather expensive valuation of AWR.
- The rest of the industry has a similar Price/Earnings ratio as AWR.
- When comparing the Price/Earnings ratio of AWR to the average of the S&P500 Index (28.30), we can say AWR is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 20.70, AWR is valued on the expensive side.
- AWR's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 20.7 |
4.2 Price Multiples
- AWR's Enterprise Value to EBITDA ratio is in line with the industry average.
- 92.86% of the companies in the same industry are more expensive than AWR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.88 | ||
| EV/EBITDA | 15.08 |
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)3.74
PEG (5Y)2.61
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.79%.
- Compared to an average industry Dividend Yield of 2.98, AWR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, AWR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
- On average, the dividend of AWR grows each year by 8.98%, which is quite nice.
- AWR has paid a dividend for at least 10 years, which is a reliable track record.
- AWR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.