AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
AWR gets a fundamental rating of 4 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 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.
In the past year AWR had a positive cash flow from operations.
In the past 5 years AWR has always been profitable.
In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
AWR has a better Return On Assets (4.81%) than 78.57% of its industry peers.
The Return On Equity of AWR (12.81%) is better than 92.86% of its industry peers.
AWR's Return On Invested Capital of 6.18% is amongst the best of the industry. AWR outperforms 92.86% of its industry peers.
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 5.00%.
The 3 year average ROIC (6.15%) for AWR is below the current ROIC(6.18%), indicating increased profibility in the last year.
| 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
AWR has a Profit Margin (20.15%) which is comparable to the rest of the industry.
AWR's Profit Margin has improved in the last couple of years.
AWR has a Operating Margin (31.41%) which is in line with its industry peers.
AWR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.65%, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
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
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.
Compared to 5 years ago, AWR has more shares outstanding
The debt/assets ratio for AWR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.88 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 1.88, 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.
With a Debt to Equity ratio value of 0.98, AWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.72
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.81 indicates that AWR may have some problems paying its short term obligations.
AWR has a Current ratio (0.81) which is in line with its industry peers.
AWR has a Quick Ratio of 0.81. This is a bad value and indicates that AWR is not financially healthy enough and could expect problems in meeting its short term obligations.
AWR's Quick ratio of 0.76 is in line compared to the rest of the industry. AWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.85%, which is quite good.
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
The Earnings Per Share is expected to grow by 5.90% on average over the next years.
AWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.62, which indicates a rather expensive current valuation of AWR.
AWR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AWR to the average of the S&P500 Index (27.52), we can say AWR is valued inline with the index average.
The Price/Forward Earnings ratio is 21.88, which indicates a rather expensive current valuation of AWR.
AWR's Price/Forward Earnings ratio is in line with the industry average.
AWR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 21.88 |
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 | 15.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)5.01
PEG (5Y)2.85
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 3.32.
Compared to an average S&P500 Dividend Yield of 2.35, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of AWR grows each year by 8.98%, which is quite nice.
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 56.21% 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.
DP56.21%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
76.76
+1.11 (+1.47%)
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 Cap2.96B
Analysts50.91
Price Target86.02 (12.06%)
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)0%
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 | 23.62 | ||
| Fwd PE | 21.88 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | 14.93 | ||
| P/B | 3.09 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 15.61 |
EPS(TTM)3.25
EY4.23%
EPS(NY)3.51
Fwd EY4.57%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)5.14
OCFY6.7%
SpS15.79
BVpS24.84
TBVpS24.84
PEG (NY)5.01
PEG (5Y)2.85
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 | 1.88 |
F-Score4
WACC8.53%
ROIC/WACC0.72
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%