AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
Taking everything into account, AWR scores 4 out of 10 in our fundamental rating. AWR was compared to 14 industry peers in the Water Utilities industry. While AWR belongs to the best of the industry regarding profitability, there are 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
In the past year AWR was profitable.
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 (4.81%) than 78.57% of its industry peers.
AWR's Return On Equity of 12.81% is amongst the best of the industry. AWR outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.18%, AWR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AWR is in line with the industry average of 5.00%.
The last Return On Invested Capital (6.18%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROIC | 6.18% |
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 (20.15%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AWR has grown nicely.
With a Operating Margin value of 31.41%, 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.
AWR has a Gross Margin of 82.65%. This is in the better half of the industry: AWR outperforms 78.57% of its industry peers.
In the last couple of years the Gross Margin of AWR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% |
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.
The number of shares outstanding for AWR has been increased compared to 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
An Altman-Z score of 1.87 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AWR has a better Altman-Z score (1.87) than 78.57% of its industry peers.
AWR has a Debt/Equity ratio of 0.98. This is a neutral value indicating AWR is somewhat dependend on debt financing.
The Debt to Equity ratio of AWR (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.72
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.81 indicates that AWR may have some problems paying its short term obligations.
AWR has a Current ratio (0.81) which is comparable to the rest of the industry.
AWR has a Quick Ratio of 0.81. This is a bad value and indicates that AWR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AWR (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.85%, which is quite good.
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.
The Revenue has been growing slightly by 6.79% in the past year.
The Revenue has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
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 Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
Revenue Next 3Y4.26%
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.
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
A Price/Earnings ratio of 23.29 indicates a rather expensive valuation of AWR.
The rest of the industry has a similar Price/Earnings ratio as AWR.
The average S&P500 Price/Earnings ratio is at 27.50. AWR is around the same levels.
AWR is valuated rather expensively with a Price/Forward Earnings ratio of 21.57.
AWR's Price/Forward Earnings ratio is in line with the industry average.
AWR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.59 |
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.
AWR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.94
PEG (5Y)2.81
EPS Next 2Y5.2%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
AWR's Dividend Yield is comparable with the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.35, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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
56.21% 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.
DP56.21%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
75.68
+0.17 (+0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change4.43%
Market Cap2.91B
Analysts50.91
Price Target86.02 (13.66%)
Short Float %1.55%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.03%
Min EPS beat(2)2.93%
Max EPS beat(2)15.13%
EPS beat(4)2
Avg EPS beat(4)2.69%
Min EPS beat(4)-4.02%
Max EPS beat(4)15.13%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)6
Avg EPS beat(12)-3.08%
EPS beat(16)8
Avg EPS beat(16)-2.98%
Revenue beat(2)2
Avg Revenue beat(2)6.46%
Min Revenue beat(2)0.48%
Max Revenue beat(2)12.45%
Revenue beat(4)3
Avg Revenue beat(4)5.96%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)12.45%
Revenue beat(8)5
Avg Revenue beat(8)6.36%
Revenue beat(12)6
Avg Revenue beat(12)5.39%
Revenue beat(16)8
Avg Revenue beat(16)3.22%
PT rev (1m)0%
PT rev (3m)6.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.57 | ||
| P/S | 4.79 | ||
| P/FCF | N/A | ||
| P/OCF | 14.72 | ||
| P/B | 3.05 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)3.25
EY4.29%
EPS(NY)3.51
Fwd EY4.64%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)5.14
OCFY6.79%
SpS15.79
BVpS24.84
TBVpS24.84
PEG (NY)4.94
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROCE | 8.49% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 6.23% | ||
| OM | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% | ||
| 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 | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 557.65% | ||
| Cap/Sales | 41.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.87 |
F-Score4
WACC8.54%
ROIC/WACC0.72
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)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
EPS Next Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y3.58%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.84%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y42.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.09%
OCF growth 3Y19.79%
OCF growth 5Y11.2%