AVISTA CORP (AVA)
US05379B1070 - Common Stock
AVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. Both the profitability and financial health of AVA have multiple concerns. AVA has a correct valuation and a medium growth rate. AVA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AVA had positive earnings in the past year.
In the past year AVA had a positive cash flow from operations.
AVA had positive earnings in each of the past 5 years.
AVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVA has a worse Return On Assets (2.46%) than 69.23% of its industry peers.
The Return On Equity of AVA (7.45%) is worse than 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.06%, AVA is doing worse than 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVA is in line with the industry average of 3.64%.
The last Return On Invested Capital (3.06%) for AVA is above the 3 year average (2.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 7.45% | ||
| ROIC | 3.06% |
ROA(3y)2.15%
ROA(5y)2.35%
ROE(3y)6.79%
ROE(5y)7.38%
ROIC(3y)2.62%
ROIC(5y)2.81%
1.3 Margins
The Profit Margin of AVA (9.96%) is worse than 76.92% of its industry peers.
AVA's Profit Margin has been stable in the last couple of years.
AVA has a Operating Margin of 14.96%. This is amonst the worse of the industry: AVA underperforms 96.15% of its industry peers.
AVA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 9.96% | ||
| GM | N/A |
OM growth 3Y-5.81%
OM growth 5Y-4.94%
PM growth 3Y-0.08%
PM growth 5Y0.02%
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 AVA is destroying value.
AVA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVA has more shares outstanding
AVA has a worse debt/assets ratio than last year.
2.2 Solvency
AVA has an Altman-Z score of 0.86. This is a bad value and indicates that AVA is not financially healthy and even has some risk of bankruptcy.
AVA's Altman-Z score of 0.86 is fine compared to the rest of the industry. AVA outperforms 61.54% of its industry peers.
The Debt to FCF ratio of AVA is 111.33, which is on the high side as it means it would take AVA, 111.33 years of fcf income to pay off all of its debts.
AVA has a Debt to FCF ratio of 111.33. This is amongst the best in the industry. AVA outperforms 88.46% of its industry peers.
AVA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AVA (1.15) is better than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 111.33 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.48
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.97 indicates that AVA may have some problems paying its short term obligations.
AVA's Current ratio of 0.97 is fine compared to the rest of the industry. AVA outperforms 73.08% of its industry peers.
AVA has a Quick Ratio of 0.97. This is a bad value and indicates that AVA is not financially healthy enough and could expect problems in meeting its short term obligations.
AVA has a Quick ratio of 0.69. This is in the better half of the industry: AVA outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
AVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.65%, which is quite impressive.
Measured over the past 5 years, AVA shows a small growth in Earnings Per Share. The EPS has been growing by 1.68% on average per year.
AVA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.50%.
The Revenue has been growing slightly by 4.63% on average over the past years.
EPS 1Y (TTM)30.65%
EPS 3Y5.8%
EPS 5Y1.68%
EPS Q2Q%24.66%
Revenue 1Y (TTM)9.5%
Revenue growth 3Y9.84%
Revenue growth 5Y4.63%
Sales Q2Q%28.4%
3.2 Future
The Earnings Per Share is expected to grow by 5.63% on average over the next years.
Based on estimates for the next years, AVA will show a small growth in Revenue. The Revenue will grow by 2.07% on average per year.
EPS Next Y9.53%
EPS Next 2Y7.96%
EPS Next 3Y6.75%
EPS Next 5Y5.63%
Revenue Next Year3.67%
Revenue Next 2Y3.69%
Revenue Next 3Y3.63%
Revenue Next 5Y2.07%
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 accelerating.
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
Based on the Price/Earnings ratio of 15.22, the valuation of AVA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of AVA indicates a somewhat cheap valuation: AVA is cheaper than 61.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AVA to the average of the S&P500 Index (28.05), we can say AVA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.10, the valuation of AVA can be described as correct.
AVA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.07. AVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
AVA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVA is cheaper than 61.54% of the companies in the same industry.
88.46% of the companies in the same industry are more expensive than AVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 110.45 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.6
PEG (5Y)9.05
EPS Next 2Y7.96%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
AVA has a Yearly Dividend Yield of 5.24%, which is a nice return.
AVA's Dividend Yield is rather good when compared to the industry average which is at 4.27. AVA pays more dividend than 80.77% of the companies in the same industry.
AVA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of AVA has a limited annual growth rate of 4.24%.
AVA has been paying a dividend for at least 10 years, so it has a reliable track record.
AVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.24%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
76.53% of the earnings are spent on dividend by AVA. This is not a sustainable payout ratio.
The dividend of AVA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.53%
EPS Next 2Y7.96%
EPS Next 3Y6.75%
AVISTA CORP
NYSE:AVA (5/31/2024, 7:24:33 PM)
After market: 36.98 0 (0%)36.98
+0.72 (+1.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.6
PEG (5Y)9.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 7.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.96% | ||
| PM (TTM) | 9.96% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.65%
EPS 3Y5.8%
EPS 5Y
EPS Q2Q%
EPS Next Y9.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.5%
Revenue growth 3Y9.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y