AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - NYSE:AWR - US0298991011 - Common Stock
72.16 USD
+0.23 (+0.32%)
AWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. AWR scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, AWR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AWR was profitable.
In the past year AWR had a positive cash flow from operations.
Each year in the past 5 years AWR has 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 (4.76%) is better than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 12.78%, AWR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.02%, AWR belongs to the top of the industry, outperforming 92.86% 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 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
The Profit Margin of AWR (20.19%) is comparable to the rest of the industry.
AWR's Profit Margin has improved in the last couple of years.
The Operating Margin of AWR (30.89%) is comparable to the rest of the industry.
AWR's Operating Margin has improved in the last couple of years.
AWR has a Gross Margin of 81.58%. This is in the better half of the industry: AWR outperforms 78.57% of its industry peers.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWR is destroying value.
The number of shares outstanding for AWR has been increased compared to 1 year ago.
AWR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.85 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AWR's Altman-Z score of 1.85 is fine compared to the rest of the industry. AWR outperforms 71.43% of its industry peers.
AWR has a Debt/Equity ratio of 0.97. This is a neutral value indicating 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 | 1.85 |
ROIC/WACC0.74
WACC8.12%
2.3 Liquidity
AWR has a Current Ratio of 1.56. This is a normal value and indicates that AWR is financially healthy and should not expect problems in meeting its short term obligations.
AWR's Current ratio of 1.56 is fine compared to the rest of the industry. AWR outperforms 71.43% of its industry peers.
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.
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 grown by 8.55% in the past year. This is quite good.
AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
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
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 Y4.82%
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
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.
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
With a Price/Earnings ratio of 22.07, AWR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as AWR.
AWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 20.50, AWR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AWR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.87. AWR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
AWR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.62 |
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)4.58
PEG (5Y)2.67
EPS Next 2Y5.37%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.80%.
AWR's Dividend Yield is comparable with the industry average which is at 3.38.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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.
The dividend of AWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.92%
EPS Next 2Y5.37%
EPS Next 3Y5.35%
NYSE:AWR (9/24/2025, 12:41:49 PM)
72.16
+0.23 (+0.32%)
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 Change0.89%
Market Cap2.78B
Analysts50
Price Target83.13 (15.2%)
Short Float %1.54%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)-1.01%
PT rev (3m)-3.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 20.5 | ||
| P/S | 4.51 | ||
| P/FCF | N/A | ||
| P/OCF | 11.68 | ||
| P/B | 2.86 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)3.27
EY4.53%
EPS(NY)3.52
Fwd EY4.88%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)6.18
OCFY8.56%
SpS15.99
BVpS25.25
TBVpS25.25
PEG (NY)4.58
PEG (5Y)2.67
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 | 1.85 |
F-Score5
WACC8.12%
ROIC/WACC0.74
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%