AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
73.16 USD
-1.47 (-1.97%)
73.16 USD
0 (0%)
Taking everything into account, AWR scores 6 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years AWR has always been profitable.
- In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
- AWR has a Return On Assets of 4.88%. This is in the better half of the industry: AWR outperforms 78.57% of its industry peers.
- AWR has a Return On Equity of 12.84%. This is amongst the best in the industry. AWR outperforms 92.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.19%, AWR belongs to the top of the industry, outperforming 85.71% 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 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
- Looking at the Profit Margin, with a value of 20.35%, AWR is in line with its industry, 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 (30.92%) which is in line with 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.
- 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 1.88 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.88, AWR is in the better half of 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 has a better Debt to FCF ratio (26.20) than 85.71% of its industry peers.
- A Debt/Equity ratio of 0.91 indicates that AWR is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.91, AWR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.72
WACC8.57%
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.
- AWR has a Quick ratio of 1.18. This is in the better half 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
- The Earnings Per Share has grown by an nice 13.80% over the past year.
- 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.
- Looking at the last year, AWR shows a quite strong growth in Revenue. The Revenue has grown by 10.28% in the last year.
- 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
- 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 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.
- 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 21.64, the valuation of AWR can be described as rather expensive.
- AWR's Price/Earnings is on the same level as the industry average.
- AWR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.76, AWR is valued on the expensive side.
- AWR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 20.76 |
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 | 81.1 | ||
| EV/EBITDA | 15.44 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AWR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.75
PEG (5Y)2.62
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.91, AWR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AWR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 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 56.10% 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.
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.