AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
72.77 USD
-0.44 (-0.6%)
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
- AWR had positive earnings in the past year.
- In the past year AWR had a positive cash flow from operations.
- Each year in the past 5 years AWR has been profitable.
- In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
- AWR's Return On Assets of 4.88% is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
- With an excellent Return On Equity value of 12.84%, AWR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 6.19%, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- AWR had an Average Return On Invested Capital over the past 3 years of 6.15%. This 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
- AWR's Profit Margin of 20.35% is in line compared to the rest of the industry. AWR outperforms 57.14% of its industry peers.
- AWR's Profit Margin has improved in the last couple of years.
- AWR's Operating Margin of 30.92% is in line compared to the rest of the industry. AWR outperforms 57.14% of its industry peers.
- In the last couple of years the Operating Margin of AWR has grown nicely.
- AWR has a better Gross Margin (81.56%) than 85.71% 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
- 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.
- Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
- AWR has an Altman-Z score of 1.86. 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.
- AWR's Altman-Z score of 1.86 is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
- 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.
- 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 | 1.86 |
ROIC/WACC0.75
WACC8.22%
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.
- With an excellent Current ratio value of 1.27, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.18, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| 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.
- AWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.28% yearly.
- The Revenue has grown by 10.28% in the past year. This is quite good.
- The Revenue has been growing slightly by 4.67% on average over the past years.
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
- Based on estimates for the next years, AWR will show a small growth in Earnings Per Share. The EPS will grow by 5.90% on average per year.
- AWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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
- 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
- With a Price/Earnings ratio of 21.53, AWR is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of AWR is on the same level as its industry peers.
- AWR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 20.64 indicates a rather expensive valuation of AWR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AWR is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, AWR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 20.64 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AWR indicates a rather cheap valuation: AWR is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.67 | ||
| EV/EBITDA | 15.22 |
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)3.73
PEG (5Y)2.6
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.70%.
- Compared to an average industry Dividend Yield of 2.93, 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 | 2.7% |
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.
- 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.