AVISTA CORP (AVA)

US05379B1070 - Common Stock

34.68  +0.98 (+2.91%)

After market: 34.61 -0.07 (-0.2%)

Fundamental Rating

3

Overall AVA gets a fundamental rating of 3 out of 10. We evaluated AVA against 26 industry peers in the Multi-Utilities industry. AVA has a bad profitability rating. Also its financial health evaluation is rather negative. AVA is valied quite expensively at the moment, while it does show a decent growth rate. Finally AVA also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

AVA had positive earnings in the past year.
AVA had a positive operating cash flow in the past year.
In the past 5 years AVA has always been profitable.
Each year in the past 5 years AVA had a positive operating cash flow.

1.2 Ratios

The Return On Assets of AVA (2.22%) is worse than 73.08% of its industry peers.
AVA has a Return On Equity of 6.89%. This is in the lower half of the industry: AVA underperforms 76.92% of its industry peers.
AVA has a worse Return On Invested Capital (2.80%) than 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVA is in line with the industry average of 3.73%.
The last Return On Invested Capital (2.80%) for AVA is above the 3 year average (2.62%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.22%
ROE 6.89%
ROIC 2.8%
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 (9.77%) is worse than 76.92% of its industry peers.
AVA's Profit Margin has been stable in the last couple of years.
AVA's Operating Margin of 14.71% is on the low side compared to the rest of the industry. AVA is outperformed by 96.15% of its industry peers.
In the last couple of years the Operating Margin of AVA has declined.
Industry RankSector Rank
OM 14.71%
PM (TTM) 9.77%
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

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVA is destroying value.
Compared to 1 year ago, AVA has more shares outstanding
The number of shares outstanding for AVA has been increased compared to 5 years ago.
Compared to 1 year ago, AVA has a worse debt to assets ratio.

2.2 Solvency

AVA has an Altman-Z score of 0.78. This is a bad value and indicates that AVA is not financially healthy and even has some risk of bankruptcy.
AVA has a Altman-Z score of 0.78. This is comparable to the rest of the industry: AVA outperforms 53.85% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that AVA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.19, AVA belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF N/A
Altman-Z 0.78
ROIC/WACC0.46
WACC6.13%

2.3 Liquidity

A Current Ratio of 0.85 indicates that AVA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, AVA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
AVA has a Quick Ratio of 0.85. This is a bad value and indicates that AVA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, AVA is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.65

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.13% over the past year.
AVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.68% yearly.
Looking at the last year, AVA shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
AVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.63% yearly.
EPS 1Y (TTM)6.13%
EPS 3Y5.8%
EPS 5Y1.68%
EPS growth Q2Q4.76%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y9.84%
Revenue growth 5Y4.63%
Revenue growth Q2Q1.42%

3.2 Future

Based on estimates for the next years, AVA will show a small growth in Earnings Per Share. The EPS will grow by 5.65% on average per year.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y8.07%
EPS Next 2Y7.8%
EPS Next 3Y5.86%
EPS Next 5Y5.65%
Revenue Next Year-5.12%
Revenue Next 2Y0.14%
Revenue Next 3Y2.76%
Revenue Next 5Y1.42%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.41 indicates a correct valuation of AVA.
AVA's Price/Earnings ratio is a bit cheaper when compared to the industry. AVA is cheaper than 65.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. AVA is valued slightly cheaper when compared to this.
AVA is valuated correctly with a Price/Forward Earnings ratio of 14.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVA indicates a somewhat cheap valuation: AVA is cheaper than 61.54% of the companies listed in the same industry.
AVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.41
Fwd PE 14.26

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVA.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.91
PEG (5Y)9.17
EPS Next 2Y7.8%
EPS Next 3Y5.86%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.62%, AVA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.41, AVA pays a better dividend. On top of this AVA pays more dividend than 88.46% of the companies listed in the same industry.
AVA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 5.62%

5.2 History

The dividend of AVA has a limited annual growth rate of 4.24%.
AVA has paid a dividend for at least 10 years, which is a reliable track record.
AVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.24%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

AVA pays out 82.35% of its income as dividend. This is not a sustainable payout ratio.
AVA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.35%
EPS Next 2Y7.8%
EPS Next 3Y5.86%

AVISTA CORP

NYSE:AVA (3/27/2024, 8:04:00 PM)

After market: 34.61 -0.07 (-0.2%)

34.68

+0.98 (+2.91%)

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 Cap2.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.62%
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)
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Min EPS beat(4)
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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)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 15.41
Fwd PE 14.26
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)1.91
PEG (5Y)9.17
Profitability
Industry RankSector Rank
ROA 2.22%
ROE 6.89%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.71%
PM (TTM) 9.77%
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 Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.85
Quick Ratio 0.65
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)
Growth
EPS 1Y (TTM)6.13%
EPS 3Y5.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.42%
Revenue growth 3Y9.84%
Revenue growth 5Y
Revenue growth 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