AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
73.77 USD
-0.26 (-0.35%)
73.7 USD
-0.07 (-0.09%)
Overall AWR gets a fundamental rating of 6 out of 10. We evaluated AWR against 15 industry peers in the Water Utilities industry. While AWR has a great profitability rating, there are some minor concerns on its financial health. AWR has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AWR has been profitable.
In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.88%, AWR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Return On Equity of AWR (12.84%) is better than 93.33% of its industry peers.
AWR has a Return On Invested Capital of 6.19%. This is amongst the best in the industry. AWR outperforms 86.67% 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 4.77%.
The last Return On Invested Capital (6.19%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 12.84% | ||
| ROIC | 6.19% |
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
With a Profit Margin value of 20.35%, AWR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
AWR's Profit Margin has improved in the last couple of years.
AWR's Operating Margin of 30.92% is fine compared to the rest of the industry. AWR outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of AWR has grown nicely.
Looking at the Gross Margin, with a value of 81.56%, AWR is in the better half of the industry, outperforming 80.00% 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 | 30.92% | ||
| PM (TTM) | 20.35% | ||
| GM | 81.56% |
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.
The number of shares outstanding for AWR has been increased compared to 1 year ago.
Compared to 5 years ago, AWR has more shares outstanding
Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
AWR has an Altman-Z score of 1.87. 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.
The Altman-Z score of AWR (1.87) is better than 80.00% of its industry peers.
The Debt to FCF ratio of AWR is 26.20, which is on the high side as it means it would take AWR, 26.20 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 26.20, AWR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that AWR is somewhat dependend on debt financing.
The Debt to Equity ratio of AWR (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.78
WACC7.98%
2.3 Liquidity
AWR has a Current Ratio of 1.27. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
AWR has a Current ratio of 1.27. This is amongst the best in the industry. AWR outperforms 86.67% of its industry peers.
AWR has a Quick Ratio of 1.18. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, AWR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.80%, which is quite good.
The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
Looking at the last year, AWR shows a quite strong growth in Revenue. The Revenue has grown by 10.28% in the last year.
Measured over the past years, AWR shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
EPS 1Y (TTM)13.8%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%11.58%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
3.2 Future
The Earnings Per Share is expected to grow by 5.90% on average over the next years.
The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
EPS Next 5Y5.9%
Revenue Next Year7.05%
Revenue Next 2Y5.51%
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
The Price/Earnings ratio is 21.83, which indicates a rather expensive current valuation of AWR.
The rest of the industry has a similar Price/Earnings ratio as AWR.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AWR is valued at the same level.
With a Price/Forward Earnings ratio of 20.97, AWR is valued on the expensive side.
AWR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, AWR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AWR.
93.33% of the companies in the same industry are more expensive than AWR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.35 | ||
| EV/EBITDA | 15.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWR does not grow enough to justify the current Price/Earnings ratio.
AWR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.85
PEG (5Y)2.64
EPS Next 2Y5.35%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, AWR has a reasonable but not impressive dividend return.
AWR's Dividend Yield is comparable with the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.40, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 56.10% 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.
DP56.1%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
73.77
-0.26 (-0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change5.15%
Ins Owners0.85%
Ins Owner Change0.05%
Market Cap2.84B
Revenue(TTM)636.89M
Net Income(TTM)129.63M
Analysts50
Price Target82.62 (12%)
Short Float %2.07%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.1%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.59%
Min EPS beat(2)-5.6%
Max EPS beat(2)4.43%
EPS beat(4)3
Avg EPS beat(4)4.22%
Min EPS beat(4)-5.6%
Max EPS beat(4)15.13%
EPS beat(8)4
Avg EPS beat(8)1.18%
EPS beat(12)7
Avg EPS beat(12)-1.03%
EPS beat(16)8
Avg EPS beat(16)-3.07%
Revenue beat(2)1
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-5.39%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-5.39%
Max Revenue beat(4)12.45%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)7
Avg Revenue beat(12)6.25%
Revenue beat(16)7
Avg Revenue beat(16)2.51%
PT rev (1m)-0.61%
PT rev (3m)-0.61%
EPS NQ rev (1m)-1.41%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-6.46%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 20.97 | ||
| P/S | 4.46 | ||
| P/FCF | 81.35 | ||
| P/OCF | 10.66 | ||
| P/B | 2.81 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 15.29 |
EPS(TTM)3.38
EY4.58%
EPS(NY)3.52
Fwd EY4.77%
FCF(TTM)0.91
FCFY1.23%
OCF(TTM)6.92
OCFY9.38%
SpS16.54
BVpS26.21
TBVpS26.21
PEG (NY)4.85
PEG (5Y)2.64
Graham Number44.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 12.84% | ||
| ROCE | 8.01% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 6.26% | ||
| OM | 30.92% | ||
| PM (TTM) | 20.35% | ||
| GM | 81.56% | ||
| FCFM | 5.48% |
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%
ROICexgc growth 3Y0.1%
ROICexgc 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-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 489.1% | ||
| Cap/Sales | 36.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.11% | ||
| Profit Quality | 26.94% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.87 |
F-Score6
WACC7.98%
ROIC/WACC0.78
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)13.8%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%11.58%
EPS Next Y4.5%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
EPS Next 5Y5.9%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
Revenue Next Year7.05%
Revenue Next 2Y5.51%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y9.06%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.31%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y136.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y215.79%
OCF growth 3Y19.79%
OCF growth 5Y11.2%
AMERICAN STATES WATER CO / AWR FAQ
What is the ChartMill fundamental rating of AMERICAN STATES WATER CO (AWR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to AWR.
What is the valuation status for AWR stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN STATES WATER CO (AWR). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN STATES WATER CO?
AMERICAN STATES WATER CO (AWR) has a profitability rating of 8 / 10.
What is the valuation of AMERICAN STATES WATER CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN STATES WATER CO (AWR) is 21.83 and the Price/Book (PB) ratio is 2.81.
What is the financial health of AMERICAN STATES WATER CO (AWR) stock?
The financial health rating of AMERICAN STATES WATER CO (AWR) is 5 / 10.