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 does not seem to be growing, but still is valued expensively.
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
Looking at the Return On Assets, with a value of 4.58%, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.61%, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
AWR's Return On Invested Capital of 6.02% is fine compared to the rest of the industry. AWR outperforms 78.57% 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 5.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 12.61% | ||
| ROIC | 6.02% |
ROA(3y)4.78%
ROA(5y)4.85%
ROE(3y)13.6%
ROE(5y)13.63%
ROIC(3y)6.04%
ROIC(5y)6.06%
1.3 Margins
Looking at the Profit Margin, with a value of 19.20%, AWR is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of AWR has grown nicely.
The Operating Margin of AWR (31.27%) is comparable to the rest of the industry.
AWR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.78%, 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 | 31.27% | ||
| PM (TTM) | 19.2% | ||
| GM | 82.78% |
OM growth 3Y7.29%
OM growth 5Y7.4%
PM growth 3Y5.84%
PM growth 5Y7.54%
GM growth 3Y1.17%
GM growth 5Y0.96%
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 remains at a similar level compared to 1 year ago.
AWR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AWR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AWR (1.84) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that AWR has dependencies on debt financing.
The Debt to Equity ratio of AWR (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.76
WACC7.93%
2.3 Liquidity
AWR has a Current Ratio of 0.69. This is a bad value and indicates that AWR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.69, AWR is doing worse than 64.29% of the companies in the same industry.
AWR has a Quick Ratio of 0.69. This is a bad value and indicates that AWR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, AWR is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.83% over the past year.
The Earnings Per Share has been growing by 10.47% on average over the past years. This is quite good.
Looking at the last year, AWR shows a decrease in Revenue. The Revenue has decreased by -3.08% in the last year.
AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)6.83%
EPS 3Y6.69%
EPS 5Y10.47%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y6.86%
Revenue growth 5Y6.4%
Sales Q2Q%6.65%
3.2 Future
Based on estimates for the next years, AWR will show a small growth in Earnings Per Share. The EPS will grow by 7.38% on average per year.
AWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.50% yearly.
EPS Next Y7.66%
EPS Next 2Y8.52%
EPS Next 3Y7.65%
EPS Next 5Y7.38%
Revenue Next Year9.74%
Revenue Next 2Y8.4%
Revenue Next 3Y6.09%
Revenue Next 5Y5.5%
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
Based on the Price/Earnings ratio of 24.76, the valuation of AWR can be described as rather expensive.
Based on the Price/Earnings ratio, AWR is valued a bit more expensive than 71.43% of the companies in the same industry.
AWR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.06 indicates a rather expensive valuation of AWR.
AWR's Price/Forward 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.
The average S&P500 Price/Forward Earnings ratio is at 91.29. AWR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AWR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.71 |
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 decent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)3.23
PEG (5Y)2.36
EPS Next 2Y8.52%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, AWR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, AWR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of AWR is nicely growing with an annual growth rate of 9.34%!
AWR has been paying a dividend for at least 10 years, so it has 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)9.34%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
AWR pays out 58.87% of its income as dividend. 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.
DP58.87%
EPS Next 2Y8.52%
EPS Next 3Y7.65%
AMERICAN STATES WATER CO
NYSE:AWR (1/29/2025, 8:05:23 PM)
After market: 73.54 0 (0%)73.54
-1.3 (-1.74%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change-0.77%
Ins Owners0.84%
Ins Owner Change-0.01%
Market Cap2.78B
Analysts75
Price Target88.4 (20.21%)
Short Float %1.88%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend1.65
Dividend Growth(5Y)9.34%
DP58.87%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.64%
Min EPS beat(2)-4.02%
Max EPS beat(2)-3.27%
EPS beat(4)1
Avg EPS beat(4)-1.86%
Min EPS beat(4)-4.02%
Max EPS beat(4)0.84%
EPS beat(8)4
Avg EPS beat(8)-3.66%
EPS beat(12)5
Avg EPS beat(12)-5.5%
EPS beat(16)8
Avg EPS beat(16)-2.43%
Revenue beat(2)1
Avg Revenue beat(2)5.47%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)11.44%
Revenue beat(4)2
Avg Revenue beat(4)4.34%
Min Revenue beat(4)-6.11%
Max Revenue beat(4)12.53%
Revenue beat(8)4
Avg Revenue beat(8)8.28%
Revenue beat(12)4
Avg Revenue beat(12)2.62%
Revenue beat(16)8
Avg Revenue beat(16)4.05%
PT rev (1m)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.06 | ||
| P/S | 4.81 | ||
| P/FCF | N/A | ||
| P/OCF | 19.12 | ||
| P/B | 3.16 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)2.97
EY4.04%
EPS(NY)3.33
Fwd EY4.53%
FCF(TTM)-2.13
FCFYN/A
OCF(TTM)3.85
OCFY5.23%
SpS15.28
BVpS23.27
TBVpS23.24
PEG (NY)3.23
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 12.61% | ||
| ROCE | 8.6% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 6.07% | ||
| OM | 31.27% | ||
| PM (TTM) | 19.2% | ||
| GM | 82.78% | ||
| FCFM | N/A |
ROA(3y)4.78%
ROA(5y)4.85%
ROE(3y)13.6%
ROE(5y)13.63%
ROIC(3y)6.04%
ROIC(5y)6.06%
ROICexc(3y)6.08%
ROICexc(5y)6.12%
ROICexgc(3y)6.08%
ROICexgc(5y)6.12%
ROCE(3y)8.41%
ROCE(5y)8.27%
ROICexcg growth 3Y5.37%
ROICexcg growth 5Y4.5%
ROICexc growth 3Y5.37%
ROICexc growth 5Y4.5%
OM growth 3Y7.29%
OM growth 5Y7.4%
PM growth 3Y5.84%
PM growth 5Y7.54%
GM growth 3Y1.17%
GM growth 5Y0.96%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 515.85% | ||
| Cap/Sales | 39.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.84 |
F-Score4
WACC7.93%
ROIC/WACC0.76
Cap/Depr(3y)398.57%
Cap/Depr(5y)394.35%
Cap/Sales(3y)31.48%
Cap/Sales(5y)30.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.83%
EPS 3Y6.69%
EPS 5Y10.47%
EPS Q2Q%11.76%
EPS Next Y7.66%
EPS Next 2Y8.52%
EPS Next 3Y7.65%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y6.86%
Revenue growth 5Y6.4%
Sales Q2Q%6.65%
Revenue Next Year9.74%
Revenue Next 2Y8.4%
Revenue Next 3Y6.09%
Revenue Next 5Y5.5%
EBIT growth 1Y-4.66%
EBIT growth 3Y14.64%
EBIT growth 5Y14.28%
EBIT Next Year36.99%
EBIT Next 3Y16.22%
EBIT Next 5Y12.69%
FCF growth 1Y-121.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.64%
OCF growth 3Y-17.88%
OCF growth 5Y-13.13%