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. While AWR belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AWR is valued expensive at the moment.
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
The Return On Assets of AWR (4.75%) is better than 78.57% of its industry peers.
AWR's Return On Equity of 12.92% is amongst the best of the industry. AWR outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, AWR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AWR is in line with the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.92% | ||
| ROIC | 6.11% |
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
The Profit Margin of AWR (19.96%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AWR has grown nicely.
Looking at the Operating Margin, with a value of 30.98%, AWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of AWR has grown nicely.
Looking at the Gross Margin, with a value of 83.05%, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.98% | ||
| PM (TTM) | 19.96% | ||
| GM | 83.05% |
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
AWR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AWR has been reduced compared to a year ago.
2.2 Solvency
AWR has an Altman-Z score of 1.96. This is not the best score and indicates that AWR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.96, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that AWR has dependencies on debt financing.
AWR has a Debt to Equity ratio of 1.01. This is comparable to the rest of the industry: AWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.73
WACC8.31%
2.3 Liquidity
AWR has a Current Ratio of 0.82. 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 has a Current ratio (0.82) which is in line with its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| 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 12.01%, 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.
The Revenue has decreased by -0.04% in the past year.
AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
EPS 1Y (TTM)12.01%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%36.36%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%14.31%
3.2 Future
Based on estimates for the next years, AWR will show a small growth in Earnings Per Share. The EPS will grow by 5.59% on average per year.
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 Y3.79%
EPS Next 2Y4.96%
EPS Next 3Y5.54%
EPS Next 5Y5.59%
Revenue Next Year4.72%
Revenue Next 2Y4.77%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 25.21 indicates a quite expensive valuation of AWR.
Based on the Price/Earnings ratio, AWR is valued a bit more expensive than 64.29% of the companies in the same industry.
AWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.88.
AWR is valuated rather expensively with a Price/Forward Earnings ratio of 24.29.
AWR's Price/Forward Earnings ratio is in line with the industry average.
AWR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
AWR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.06 |
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)6.66
PEG (5Y)3.05
EPS Next 2Y4.96%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.35%.
Compared to an average industry Dividend Yield of 3.35, AWR has a dividend in line with its industry peers.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
56.39% 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.
DP56.39%
EPS Next 2Y4.96%
EPS Next 3Y5.54%
NYSE:AWR (5/1/2025, 10:44:06 AM)
79.93
-1.18 (-1.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change1.07%
Ins Owners0.83%
Ins Owner Change3.55%
Market Cap3.08B
Analysts49.09
Price Target82.28 (2.94%)
Short Float %1.4%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.39%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.55%
Min EPS beat(2)-4.02%
Max EPS beat(2)15.13%
EPS beat(4)1
Avg EPS beat(4)1.71%
Min EPS beat(4)-4.02%
Max EPS beat(4)15.13%
EPS beat(8)5
Avg EPS beat(8)3.22%
EPS beat(12)5
Avg EPS beat(12)-5.77%
EPS beat(16)8
Avg EPS beat(16)-2.31%
Revenue beat(2)1
Avg Revenue beat(2)5.97%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)12.45%
Revenue beat(4)3
Avg Revenue beat(4)8.98%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)12.53%
Revenue beat(8)5
Avg Revenue beat(8)11.48%
Revenue beat(12)5
Avg Revenue beat(12)4.36%
Revenue beat(16)8
Avg Revenue beat(16)4.12%
PT rev (1m)1.68%
PT rev (3m)-6.92%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-7.76%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)2.71%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 24.29 | ||
| P/S | 5.17 | ||
| P/FCF | N/A | ||
| P/OCF | 15.49 | ||
| P/B | 3.35 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 17.06 |
EPS(TTM)3.17
EY3.97%
EPS(NY)3.29
Fwd EY4.12%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)5.16
OCFY6.46%
SpS15.46
BVpS23.89
TBVpS23.89
PEG (NY)6.66
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.92% | ||
| ROCE | 8.33% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.18% | ||
| OM | 30.98% | ||
| PM (TTM) | 19.96% | ||
| GM | 83.05% | ||
| 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 | 1.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 524.49% | ||
| Cap/Sales | 38.95% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 86.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.96 |
F-Score4
WACC8.31%
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)12.01%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%36.36%
EPS Next Y3.79%
EPS Next 2Y4.96%
EPS Next 3Y5.54%
EPS Next 5Y5.59%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%14.31%
Revenue Next Year4.72%
Revenue Next 2Y4.77%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y-6.2%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year41.32%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y72.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y193.62%
OCF growth 3Y19.79%
OCF growth 5Y11.2%