AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
72.69 USD
+0.83 (+1.16%)
72.69 USD
0 (0%)
AWR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 industry peers in the Water Utilities industry. While AWR belongs to the best of the industry regarding profitability, 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.
AWR had a positive operating cash flow in the past year.
Each year in the past 5 years AWR has been profitable.
Each year in the past 5 years AWR had a positive operating cash flow.
1.2 Ratios
AWR has a Return On Assets of 4.88%. This is in the better half of the industry: AWR outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 12.84%, AWR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.19%, AWR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AWR is in line with the industry average of 4.77%.
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
AWR has a Profit Margin of 20.35%. This is comparable to the rest of the industry: AWR outperforms 60.00% of its industry peers.
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 the better half of the industry, outperforming 66.67% 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 81.56%. This is in the better half of the industry: AWR outperforms 80.00% 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 | 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
AWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AWR has more shares outstanding
The number of shares outstanding for AWR has been increased compared to 5 years ago.
Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
AWR has an Altman-Z score of 1.85. 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.
With a decent Altman-Z score value of 1.85, AWR is doing good in the industry, outperforming 80.00% 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.
Looking at the Debt to FCF ratio, with a value of 26.20, AWR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.79
WACC7.84%
2.3 Liquidity
AWR has a Current Ratio of 1.27. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.27, AWR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that AWR should not have too much problems paying its short term obligations.
AWR has a better Quick ratio (1.18) than 80.00% 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.
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
With a Price/Earnings ratio of 21.51, AWR is valued on the expensive side.
Based on the Price/Earnings ratio, AWR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, AWR is valued at the same level.
With a Price/Forward Earnings ratio of 20.62, 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 23.80, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 20.62 |
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 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.58 | ||
| EV/EBITDA | 15 |
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)3.72
PEG (5Y)2.6
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, AWR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, AWR has a dividend in line with its industry peers.
AWR's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
56.10% of the earnings are spent on dividend by AWR. 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%
72.69
+0.83 (+1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change5.15%
Ins Owners0.85%
Ins Owner Change-0.09%
Market Cap2.81B
Revenue(TTM)636.89M
Net Income(TTM)129.63M
Analysts50
Price Target82.62 (13.66%)
Short Float %2.21%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.1%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-0.61%
PT rev (3m)-0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)1.22%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 20.62 | ||
| P/S | 4.42 | ||
| P/FCF | 80.58 | ||
| P/OCF | 10.56 | ||
| P/B | 2.79 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 15 |
EPS(TTM)3.38
EY4.65%
EPS(NY)3.52
Fwd EY4.85%
FCF(TTM)0.9
FCFY1.24%
OCF(TTM)6.89
OCFY9.47%
SpS16.45
BVpS26.07
TBVpS26.07
PEG (NY)3.72
PEG (5Y)2.6
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 | 1.85 |
F-Score6
WACC7.84%
ROIC/WACC0.79
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 for 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.
What is the valuation of AMERICAN STATES WATER CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN STATES WATER CO (AWR) is 21.51 and the Price/Book (PB) ratio is 2.79.
What is the financial health of AMERICAN STATES WATER CO (AWR) stock?
The financial health rating of AMERICAN STATES WATER CO (AWR) is 5 / 10.