AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - US0298991011 - Common Stock
74.35 USD
-0.76 (-1.01%)
74.35 USD
0 (0%)
AWR gets a fundamental rating of 5 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 some minor concerns on its financial health. AWR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AWR was profitable.
AWR had a positive operating cash flow in the past year.
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 (4.76%) than 78.57% of its industry peers.
AWR has a Return On Equity of 12.78%. This is amongst the best in the industry. AWR outperforms 92.86% of its industry peers.
AWR's Return On Invested Capital of 6.02% 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 4.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 12.78% | ||
| ROIC | 6.02% |
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 of 20.19%. This is comparable to the rest of the industry: AWR outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of AWR has grown nicely.
AWR has a Operating Margin (30.89%) which is in line with its industry peers.
AWR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 81.58%, AWR is doing good in 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 | 30.89% | ||
| PM (TTM) | 20.19% | ||
| GM | 81.58% |
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.
Compared to 1 year ago, AWR has more shares outstanding
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
AWR has an Altman-Z score of 1.89. 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 1.89, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that AWR is somewhat dependend on debt financing.
AWR has a Debt to Equity ratio of 0.97. This is comparable to the rest of the industry: AWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.73
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AWR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.56, AWR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that AWR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.46, AWR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.94% over the past year.
The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
AWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.55%.
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)13.94%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%2.35%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%4.98%
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 5.90% on average per year.
AWR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y4.82%
EPS Next 2Y5.37%
EPS Next 3Y5.35%
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
Based on the Price/Earnings ratio of 22.74, the valuation of AWR can be described as rather expensive.
AWR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.17. AWR is around the same levels.
With a Price/Forward Earnings ratio of 21.12, AWR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AWR.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.12 |
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 | 16.13 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.71
PEG (5Y)2.75
EPS Next 2Y5.37%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.70%.
AWR's Dividend Yield is comparable with the industry average which is at 3.31.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 56.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
AWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.92%
EPS Next 2Y5.37%
EPS Next 3Y5.35%
74.35
-0.76 (-1.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.13%
Inst Owner Change-0.56%
Ins Owners0.85%
Ins Owner Change4.7%
Market Cap2.86B
Analysts50.91
Price Target83.13 (11.81%)
Short Float %1.38%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-5.6%
Max EPS beat(2)2.93%
EPS beat(4)2
Avg EPS beat(4)2.11%
Min EPS beat(4)-5.6%
Max EPS beat(4)15.13%
EPS beat(8)4
Avg EPS beat(8)0.8%
EPS beat(12)6
Avg EPS beat(12)-1.71%
EPS beat(16)7
Avg EPS beat(16)-3.39%
Revenue beat(2)1
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-5.39%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-5.39%
Max Revenue beat(4)12.45%
Revenue beat(8)4
Avg Revenue beat(8)2.96%
Revenue beat(12)6
Avg Revenue beat(12)5.61%
Revenue beat(16)7
Avg Revenue beat(16)2.6%
PT rev (1m)-3.36%
PT rev (3m)1.03%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.12 | ||
| P/S | 4.65 | ||
| P/FCF | N/A | ||
| P/OCF | 12.04 | ||
| P/B | 2.94 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)3.27
EY4.4%
EPS(NY)3.52
Fwd EY4.73%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)6.18
OCFY8.31%
SpS15.99
BVpS25.25
TBVpS25.25
PEG (NY)4.71
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 12.78% | ||
| ROCE | 7.77% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 6.07% | ||
| OM | 30.89% | ||
| PM (TTM) | 20.19% | ||
| GM | 81.58% | ||
| 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-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 522.01% | ||
| Cap/Sales | 39.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.89 |
F-Score5
WACC8.24%
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)13.94%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%2.35%
EPS Next Y4.82%
EPS Next 2Y5.37%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%4.98%
Revenue Next Year7.05%
Revenue Next 2Y5.51%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y7.31%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.84%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y96.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y202.23%
OCF growth 3Y19.79%
OCF growth 5Y11.2%