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
AWR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
- 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
- The Return On Assets of AWR (4.88%) is better 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's Return On Invested Capital of 6.19% is amongst the best of the industry. AWR outperforms 85.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AWR is in line with the industry average of 4.99%.
- The last Return On Invested Capital (6.19%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 20.35%, AWR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of AWR has grown nicely.
- AWR has a Operating Margin of 30.92%. This is comparable to the rest of the industry: AWR outperforms 57.14% of its industry peers.
- AWR's Operating Margin has improved in the last couple of years.
- AWR has a Gross Margin of 81.56%. This is amongst the best in the industry. AWR outperforms 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.
- AWR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.86 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 1.86, AWR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- 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's Debt to FCF ratio of 26.20 is amongst the best of the industry. AWR outperforms 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 (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.86 |
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.
- AWR has a Quick Ratio of 1.18. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
- AWR's Quick ratio of 1.18 is fine compared to the rest of the industry. AWR outperforms 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.
- AWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.28% yearly.
- 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.
- 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
- 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
- A Price/Earnings ratio of 21.59 indicates a rather expensive valuation of AWR.
- Compared to the rest of the industry, the Price/Earnings ratio of AWR is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.32. AWR is valued slightly cheaper when compared to this.
- AWR is valuated rather expensively with a Price/Forward Earnings ratio of 20.70.
- 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 20.7 |
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.
- AWR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AWR is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.88 | ||
| EV/EBITDA | 15.18 |
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 an outstanding profitability rating, which 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 2.99, AWR has a dividend in line with its industry peers.
- AWR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
- The dividend of AWR is nicely growing with an annual growth rate of 8.98%!
- 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
- AWR pays out 56.10% 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.
DP56.1%
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.