AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
Overall AWR gets a fundamental rating of 4 out of 10. We evaluated AWR against 14 industry peers in the Water Utilities industry. AWR scores excellent on profitability, but there are concerns on its financial health. AWR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AWR had positive earnings in the past year.
AWR had a positive operating cash flow in the past year.
In the past 5 years AWR has always been profitable.
Each year in the past 5 years AWR had a positive operating cash flow.
1.2 Ratios
AWR has a better Return On Assets (4.81%) than 78.57% of its industry peers.
With an excellent Return On Equity value of 12.81%, AWR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
AWR has a better Return On Invested Capital (6.18%) than 92.86% 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 5.08%.
The last Return On Invested Capital (6.18%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROIC | 6.18% |
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 20.15%, AWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AWR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 31.41%, AWR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of AWR has grown nicely.
AWR's Gross Margin of 82.65% is fine compared to the rest of the industry. AWR outperforms 78.57% 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 | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% |
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.
AWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 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 1.89, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that AWR is somewhat dependend on debt financing.
AWR's Debt to Equity ratio of 0.98 is in line compared to the rest of the industry. AWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.73
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.81 indicates that AWR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, AWR is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that AWR may have some problems paying its short term obligations.
AWR has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.85% 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.
Looking at the last year, AWR shows a small growth in Revenue. The Revenue has grown by 6.79% in the last year.
The Revenue has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
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 Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
Revenue Next 3Y4.26%
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 23.53, the valuation of AWR can be described as rather expensive.
AWR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AWR to the average of the S&P500 Index (27.29), we can say AWR is valued inline with the index average.
AWR is valuated rather expensively with a Price/Forward Earnings ratio of 21.80.
AWR's Price/Forward Earnings is on the same level as the industry average.
AWR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWR indicates a somewhat cheap valuation: AWR is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.75 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.99
PEG (5Y)2.84
EPS Next 2Y5.2%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.41%.
AWR's Dividend Yield is comparable with the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.37, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of AWR is nicely growing with an annual growth rate of 8.98%!
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)8.98%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
56.21% 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.
DP56.21%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
76.47
-0.69 (-0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change4.43%
Market Cap2.94B
Analysts50.91
Price Target86.02 (12.49%)
Short Float %1.42%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.03%
Min EPS beat(2)2.93%
Max EPS beat(2)15.13%
EPS beat(4)2
Avg EPS beat(4)2.69%
Min EPS beat(4)-4.02%
Max EPS beat(4)15.13%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)6
Avg EPS beat(12)-3.08%
EPS beat(16)8
Avg EPS beat(16)-2.98%
Revenue beat(2)2
Avg Revenue beat(2)6.46%
Min Revenue beat(2)0.48%
Max Revenue beat(2)12.45%
Revenue beat(4)3
Avg Revenue beat(4)5.96%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)12.45%
Revenue beat(8)5
Avg Revenue beat(8)6.36%
Revenue beat(12)6
Avg Revenue beat(12)5.39%
Revenue beat(16)8
Avg Revenue beat(16)3.22%
PT rev (1m)4.55%
PT rev (3m)6.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.8 | ||
| P/S | 4.84 | ||
| P/FCF | N/A | ||
| P/OCF | 14.87 | ||
| P/B | 3.08 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)3.25
EY4.25%
EPS(NY)3.51
Fwd EY4.59%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)5.14
OCFY6.72%
SpS15.79
BVpS24.84
TBVpS24.84
PEG (NY)4.99
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROCE | 8.49% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 6.23% | ||
| OM | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y0.1%
ROICexcg 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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 557.65% | ||
| Cap/Sales | 41.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.89 |
F-Score4
WACC8.49%
ROIC/WACC0.73
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)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
EPS Next Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y3.58%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.84%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y42.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.09%
OCF growth 3Y19.79%
OCF growth 5Y11.2%