YORK WATER CO (YORW) Stock Fundamental Analysis
NASDAQ:YORW - Nasdaq - US9871841089 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to YORW. YORW was compared to 14 industry peers in the Water Utilities industry. While YORW is still in line with the averages on profitability rating, there are concerns on its financial health. YORW has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year YORW was profitable.
In the past year YORW had a positive cash flow from operations.
YORW had positive earnings in each of the past 5 years.
YORW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YORW's Return On Assets of 3.06% is in line compared to the rest of the industry. YORW outperforms 50.00% of its industry peers.
With a Return On Equity value of 8.46%, YORW perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
YORW has a Return On Invested Capital (3.56%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for YORW is in line with the industry average of 5.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 8.46% | ||
| ROIC | 3.56% |
ROA(3y)3.69%
ROA(5y)3.77%
ROE(3y)9.66%
ROE(5y)10.34%
ROIC(3y)3.87%
ROIC(5y)4.14%
1.3 Margins
The Profit Margin of YORW (25.91%) is better than 78.57% of its industry peers.
In the last couple of years the Profit Margin of YORW has remained more or less at the same level.
YORW has a Operating Margin of 37.09%. This is in the better half of the industry: YORW outperforms 78.57% of its industry peers.
YORW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.09% | ||
| PM (TTM) | 25.91% | ||
| GM | N/A |
OM growth 3Y-4.13%
OM growth 5Y-4.1%
PM growth 3Y-4.16%
PM growth 5Y-0.58%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so YORW is destroying value.
The number of shares outstanding for YORW has been increased compared to 1 year ago.
The number of shares outstanding for YORW has been increased compared to 5 years ago.
Compared to 1 year ago, YORW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.14, we must say that YORW is in the distress zone and has some risk of bankruptcy.
YORW has a Altman-Z score (1.14) which is in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that YORW is somewhat dependend on debt financing.
YORW has a Debt to Equity ratio of 0.91. This is comparable to the rest of the industry: YORW outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.14 |
ROIC/WACC0.38
WACC9.3%
2.3 Liquidity
A Current Ratio of 0.90 indicates that YORW may have some problems paying its short term obligations.
YORW's Current ratio of 0.90 is in line compared to the rest of the industry. YORW outperforms 50.00% of its industry peers.
A Quick Ratio of 0.71 indicates that YORW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, YORW is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for YORW have decreased strongly by -19.41% in the last year.
The Earnings Per Share has been growing slightly by 5.05% on average over the past years.
Looking at the last year, YORW shows a small growth in Revenue. The Revenue has grown by 3.44% in the last year.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-19.41%
EPS 3Y2.99%
EPS 5Y5.05%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y10.79%
Revenue growth 5Y7.76%
Sales Q2Q%4.7%
3.2 Future
Based on estimates for the next years, YORW will show a small growth in Earnings Per Share. The EPS will grow by 6.53% on average per year.
The Revenue is expected to grow by 5.83% on average over the next years.
EPS Next Y-4.46%
EPS Next 2Y6.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.07, YORW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of YORW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.15. YORW is around the same levels.
YORW is valuated rather expensively with a Price/Forward Earnings ratio of 19.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YORW is on the same level as its industry peers.
YORW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
YORW's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.57
EPS Next 2Y6.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, YORW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.44, YORW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, YORW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
The dividend of YORW has a limited annual growth rate of 3.93%.
YORW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of YORW decreased recently.
Dividend Growth(5Y)3.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
62.22% of the earnings are spent on dividend by YORW. This is not a sustainable payout ratio.
The dividend of YORW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.22%
EPS Next 2Y6.53%
EPS Next 3YN/A
31.6
-0.24 (-0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change2.5%
Ins Owners0.6%
Ins Owner Change3.43%
Market Cap455.04M
Analysts85.71
Price Target41.82 (32.34%)
Short Float %1.2%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend0.84
Dividend Growth(5Y)3.93%
DP62.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.17%
Min EPS beat(2)-25.73%
Max EPS beat(2)-4.61%
EPS beat(4)0
Avg EPS beat(4)-14.01%
Min EPS beat(4)-25.73%
Max EPS beat(4)-1.96%
EPS beat(8)4
Avg EPS beat(8)-3.38%
EPS beat(12)7
Avg EPS beat(12)-1.23%
EPS beat(16)9
Avg EPS beat(16)-0.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-2.65%
Revenue beat(4)0
Avg Revenue beat(4)-3.51%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-2.65%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.93%
Revenue beat(16)8
Avg Revenue beat(16)0.44%
PT rev (1m)-2.38%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 19.61 | ||
| P/S | 6 | ||
| P/FCF | N/A | ||
| P/OCF | 14.96 | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)1.37
EY4.34%
EPS(NY)1.61
Fwd EY5.1%
FCF(TTM)-1.29
FCFYN/A
OCF(TTM)2.11
OCFY6.69%
SpS5.26
BVpS16.12
TBVpS16.12
PEG (NY)N/A
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 8.46% | ||
| ROCE | 4.5% | ||
| ROIC | 3.56% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 3.56% | ||
| OM | 37.09% | ||
| PM (TTM) | 25.91% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.69%
ROA(5y)3.77%
ROE(3y)9.66%
ROE(5y)10.34%
ROIC(3y)3.87%
ROIC(5y)4.14%
ROICexc(3y)3.87%
ROICexc(5y)4.14%
ROICexgc(3y)3.87%
ROICexgc(5y)4.14%
ROCE(3y)4.9%
ROCE(5y)5.24%
ROICexcg growth 3Y-5.1%
ROICexcg growth 5Y-7.77%
ROICexc growth 3Y-5.1%
ROICexc growth 5Y-7.77%
OM growth 3Y-4.13%
OM growth 5Y-4.1%
PM growth 3Y-4.16%
PM growth 5Y-0.58%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 364.87% | ||
| Cap/Sales | 64.72% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 73.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.14 |
F-Score3
WACC9.3%
ROIC/WACC0.38
Cap/Depr(3y)473.57%
Cap/Depr(5y)440.35%
Cap/Sales(3y)79.82%
Cap/Sales(5y)72.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.41%
EPS 3Y2.99%
EPS 5Y5.05%
EPS Q2Q%-16.67%
EPS Next Y-4.46%
EPS Next 2Y6.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.44%
Revenue growth 3Y10.79%
Revenue growth 5Y7.76%
Sales Q2Q%4.7%
Revenue Next Year5.33%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.32%
EBIT growth 3Y6.22%
EBIT growth 5Y3.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y39.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.81%
OCF growth 3Y10%
OCF growth 5Y10.11%