AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - NYSE:AWR - US0298991011 - Common Stock
74.84 USD
-0.09 (-0.12%)
74.84 USD
0 (0%)
Overall AWR gets a fundamental rating of 5 out of 10. We evaluated AWR against 15 industry peers in the Water Utilities industry. While AWR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, AWR is valued expensive at the moment.
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.
AWR had positive earnings in each of the past 5 years.
AWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.76%, AWR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AWR's Return On Equity of 12.78% is amongst the best of the industry. AWR outperforms 93.33% of its industry peers.
The Return On Invested Capital of AWR (6.02%) is better than 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWR is in line with the industry average of 4.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 12.78% | ||
| ROIC | 6.02% |
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 (20.19%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AWR has grown nicely.
AWR's Operating Margin of 30.89% is in line compared to the rest of the industry. AWR outperforms 60.00% of its industry peers.
AWR's Operating Margin has improved in the last couple of years.
AWR has a Gross Margin of 81.58%. This is in the better half of the industry: AWR outperforms 80.00% of its industry peers.
AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.89% | ||
| PM (TTM) | 20.19% | ||
| GM | 81.58% |
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.
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
An Altman-Z score of 1.89 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.89, AWR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that AWR is somewhat dependend on debt financing.
AWR has a Debt to Equity ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.77
WACC7.86%
2.3 Liquidity
AWR has a Current Ratio of 1.56. 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 (1.56) is better than 73.33% of its industry peers.
AWR has a Quick Ratio of 1.46. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.46, AWR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.46 |
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 decrease in Revenue. The Revenue has decreased by -0.04% in the last year.
Measured over the past years, AWR shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
EPS 1Y (TTM)13.8%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%11.58%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
3.2 Future
AWR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
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 Y4.5%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
EPS Next 5Y5.9%
Revenue Next Year7.05%
Revenue Next 2Y5.51%
Revenue Next 3Y4.26%
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
The Price/Earnings ratio is 22.14, which indicates a rather expensive current valuation of AWR.
AWR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.83. AWR is around the same levels.
The Price/Forward Earnings ratio is 21.27, which indicates a rather expensive current valuation of AWR.
Based on the Price/Forward Earnings ratio, AWR is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 32.68. AWR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
AWR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)2.68
EPS Next 2Y5.35%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
AWR's Dividend Yield is comparable with the industry average which is at 3.39.
Compared to an average S&P500 Dividend Yield of 2.39, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
AWR pays out 56.92% of its income as dividend. 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.
DP56.92%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
74.84
-0.09 (-0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change0.07%
Ins Owners0.85%
Ins Owner Change0.89%
Market Cap2.88B
Revenue(TTM)595.46M
Net Income(TTM)124.33M
Analysts50
Price Target83.13 (11.08%)
Short Float %1.92%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-5.6%
Max EPS beat(2)2.93%
EPS beat(4)2
Avg EPS beat(4)2.11%
Min EPS beat(4)-5.6%
Max EPS beat(4)15.13%
EPS beat(8)4
Avg EPS beat(8)0.8%
EPS beat(12)6
Avg EPS beat(12)-1.71%
EPS beat(16)7
Avg EPS beat(16)-3.39%
Revenue beat(2)1
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-5.39%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-5.39%
Max Revenue beat(4)12.45%
Revenue beat(8)4
Avg Revenue beat(8)2.96%
Revenue beat(12)6
Avg Revenue beat(12)5.61%
Revenue beat(16)7
Avg Revenue beat(16)2.6%
PT rev (1m)0%
PT rev (3m)-3.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 21.27 | ||
| P/S | 4.68 | ||
| P/FCF | N/A | ||
| P/OCF | 12.12 | ||
| P/B | 2.96 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 16.1 |
EPS(TTM)3.38
EY4.52%
EPS(NY)3.52
Fwd EY4.7%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)6.18
OCFY8.25%
SpS15.99
BVpS25.25
TBVpS25.25
PEG (NY)4.92
PEG (5Y)2.68
Graham Number43.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 12.78% | ||
| ROCE | 7.77% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 6.07% | ||
| OM | 30.89% | ||
| PM (TTM) | 20.19% | ||
| GM | 81.58% | ||
| 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%
ROICexgc growth 3Y0.1%
ROICexgc 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-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 522.01% | ||
| Cap/Sales | 39.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.89 |
F-Score5
WACC7.86%
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)13.8%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%11.58%
EPS Next Y4.5%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
Revenue Next Year7.05%
Revenue Next 2Y5.51%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y7.31%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.31%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y96.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y202.23%
OCF growth 3Y19.79%
OCF growth 5Y11.2%
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 5 / 10 to AWR.
What is the valuation status for AWR stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN STATES WATER CO (AWR). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN STATES WATER CO?
AMERICAN STATES WATER CO (AWR) has a profitability rating of 7 / 10.
What is the valuation of AMERICAN STATES WATER CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN STATES WATER CO (AWR) is 22.14 and the Price/Book (PB) ratio is 2.96.
What is the financial health of AMERICAN STATES WATER CO (AWR) stock?
The financial health rating of AMERICAN STATES WATER CO (AWR) is 4 / 10.