AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AWR. AWR was compared to 14 industry peers in the Water Utilities industry. AWR scores excellent on profitability, but there are 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
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's Return On Assets of 4.81% is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
With an excellent Return On Equity value of 12.81%, AWR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Invested Capital of AWR (6.18%) is better than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWR is in line with the industry average of 5.09%.
The last Return On Invested Capital (6.18%) for AWR is above the 3 year average (6.15%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of AWR has grown nicely.
With a Operating Margin value of 31.41%, AWR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of AWR has grown nicely.
With a decent Gross Margin value of 82.65%, 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 | 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.
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
The debt/assets ratio for AWR has been reduced compared to a year ago.
2.2 Solvency
AWR has an Altman-Z score of 1.91. 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 (1.91) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that AWR is somewhat dependend on debt financing.
AWR has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC0.73
WACC8.52%
2.3 Liquidity
AWR has a Current 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 has a Current ratio (0.81) which is comparable to the rest of the industry.
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.
With a Quick ratio value of 0.76, AWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.79% 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)12.85%
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 5.59% 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 5Y5.59%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
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 24.15 indicates a rather expensive valuation of AWR.
AWR's Price/Earnings ratio is in line with the industry average.
AWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 22.38, the valuation of AWR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AWR is on the same level as its industry peers.
AWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 22.38 |
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 | 16.03 |
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.
The decent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)5.12
PEG (5Y)2.92
EPS Next 2Y5.2%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.39%.
Compared to an average industry Dividend Yield of 3.40, AWR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AWR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of AWR grows each year by 8.98%, which is quite nice.
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
AWR pays out 56.21% 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.
DP56.21%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
78.5
+0.27 (+0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change1.01%
Ins Owners0.83%
Ins Owner Change3.55%
Market Cap3.02B
Analysts49.09
Price Target82.28 (4.82%)
Short Float %1.28%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)1.68%
PT rev (3m)-4.35%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0.9%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 22.38 | ||
| P/S | 4.97 | ||
| P/FCF | N/A | ||
| P/OCF | 15.27 | ||
| P/B | 3.16 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)3.25
EY4.14%
EPS(NY)3.51
Fwd EY4.47%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)5.14
OCFY6.55%
SpS15.79
BVpS24.84
TBVpS24.84
PEG (NY)5.12
PEG (5Y)2.92
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 | 1.91 |
F-Score4
WACC8.52%
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)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
EPS Next Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.59%
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 Year41.32%
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%