AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
76.23 USD
+0.67 (+0.89%)
76.23 USD
0 (0%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AWR was profitable.
- AWR had a positive operating cash flow in the past year.
- 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
- AWR has a better Return On Assets (4.88%) than 78.57% of its industry peers.
- The Return On Equity of AWR (12.84%) is better than 92.86% of its industry peers.
- AWR has a Return On Invested Capital of 6.19%. This is amongst the best in the industry. AWR outperforms 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 has a Profit Margin (20.35%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of AWR has grown nicely.
- Looking at the Operating Margin, with a value of 30.92%, AWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
- AWR's Operating Margin has improved in the last couple of years.
- AWR has a better Gross Margin (81.56%) than 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AWR is destroying value.
- AWR has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AWR has been increased compared to 5 years ago.
- AWR has a better debt/assets ratio than last year.
2.2 Solvency
- AWR has an Altman-Z score of 1.91. 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 (1.91) is better 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.
- Looking at the Debt to FCF ratio, with a value of 26.20, AWR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- AWR has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 | 1.91 |
ROIC/WACC0.76
WACC8.17%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that AWR should not have too much problems paying its short term obligations.
- AWR has a Current ratio of 1.27. This is amongst the best in the industry. AWR outperforms 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
- AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.80%, which is quite good.
- The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
- AWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.28%.
- 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
- AWR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
- AWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- Based on the Price/Earnings ratio of 22.55, the valuation of AWR can be described as rather expensive.
- AWR's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.54. AWR is around the same levels.
- With a Price/Forward Earnings ratio of 21.63, AWR is valued on the expensive side.
- 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 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 21.63 |
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 cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.5 | ||
| EV/EBITDA | 15.7 |
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 excellent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)3.9
PEG (5Y)2.72
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.77%.
- AWR's Dividend Yield is comparable with the industry average which is at 2.99.
- Compared to an average S&P500 Dividend Yield of 1.92, AWR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 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%
76.23
+0.67 (+0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners85.21%
Inst Owner Change-0.38%
Ins Owners0.85%
Ins Owner Change-0.09%
Market Cap2.95B
Revenue(TTM)636.89M
Net Income(TTM)129.63M
Analysts50
Price Target82.62 (8.38%)
Short Float %2.35%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.1%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.59%
Min EPS beat(2)-5.6%
Max EPS beat(2)4.43%
EPS beat(4)3
Avg EPS beat(4)4.22%
Min EPS beat(4)-5.6%
Max EPS beat(4)15.13%
EPS beat(8)4
Avg EPS beat(8)1.18%
EPS beat(12)7
Avg EPS beat(12)-1.03%
EPS beat(16)8
Avg EPS beat(16)-3.07%
Revenue beat(2)1
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-5.39%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-5.39%
Max Revenue beat(4)12.45%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)7
Avg Revenue beat(12)6.25%
Revenue beat(16)7
Avg Revenue beat(16)2.51%
PT rev (1m)0%
PT rev (3m)-0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)0%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 21.63 | ||
| P/S | 4.63 | ||
| P/FCF | 84.5 | ||
| P/OCF | 11.07 | ||
| P/B | 2.92 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)3.38
EY4.43%
EPS(NY)3.52
Fwd EY4.62%
FCF(TTM)0.9
FCFY1.18%
OCF(TTM)6.89
OCFY9.03%
SpS16.45
BVpS26.07
TBVpS26.07
PEG (NY)3.9
PEG (5Y)2.72
Graham Number44.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 12.84% | ||
| ROCE | 8.01% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 6.26% | ||
| OM | 30.92% | ||
| PM (TTM) | 20.35% | ||
| GM | 81.56% | ||
| FCFM | 5.48% |
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-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 489.1% | ||
| Cap/Sales | 36.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.11% | ||
| Profit Quality | 26.94% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.91 |
F-Score6
WACC8.17%
ROIC/WACC0.76
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 Y5.78%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
EPS Next 5Y5.9%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
Revenue Next Year5.66%
Revenue Next 2Y5.19%
Revenue Next 3Y4.76%
Revenue Next 5Y4.34%
EBIT growth 1Y9.06%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.31%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y136.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y215.79%
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 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.