AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWR - US0298991011 - Common Stock
72.26 USD
-0.22 (-0.3%)
72.26 USD
0 (0%)
Taking everything into account, AWR scores 6 out of 10 in our fundamental rating. AWR was compared to 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 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.
AWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AWR has a Return On Assets of 4.88%. This is in the better half of the industry: AWR outperforms 78.57% of its industry peers.
AWR's Return On Equity of 12.84% is amongst the best of the industry. AWR outperforms 92.86% of its industry peers.
AWR has a better Return On Invested Capital (6.19%) than 85.71% 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 4.89%.
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
AWR's Profit Margin of 20.35% is in line compared to the rest of the industry. AWR outperforms 57.14% of its industry peers.
AWR's Profit Margin has improved in the last couple of years.
AWR has a Operating Margin of 30.92%. This is in the better half of the industry: AWR outperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of AWR has grown nicely.
With an excellent Gross Margin value of 81.56%, AWR belongs to the best of the industry, outperforming 85.71% 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
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.
The number of shares outstanding for AWR has been increased compared to 5 years ago.
The debt/assets ratio for AWR has been reduced compared to a year ago.
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.
With a decent Altman-Z score value of 1.85, AWR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
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.
AWR has a better Debt to FCF ratio (26.20) than 85.71% of its industry peers.
AWR has a Debt/Equity ratio of 0.91. This is a neutral value indicating AWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, AWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.75
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.27 indicates that AWR should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.27, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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.
AWR has a better Quick ratio (1.18) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.80% over the past year.
The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
The Revenue has grown by 10.28% 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)13.8%
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 Y5.78%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
EPS Next 5Y5.9%
Revenue Next Year5.66%
Revenue Next 2Y5.19%
Revenue Next 3Y4.76%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.38, which indicates a rather expensive current valuation of AWR.
The rest of the industry has a similar Price/Earnings ratio as AWR.
AWR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.50, the valuation of AWR can be described as rather expensive.
AWR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AWR to the average of the S&P500 Index (23.13), we can say AWR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AWR is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.1 | ||
| EV/EBITDA | 15.1 |
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 excellent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)3.7
PEG (5Y)2.58
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
AWR's Dividend Yield is comparable with the industry average which is at 2.96.
Compared to an average S&P500 Dividend Yield of 2.00, AWR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
56.10% 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.
DP56.1%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
72.26
-0.22 (-0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change5.15%
Ins Owners0.85%
Ins Owner Change-0.09%
Market Cap2.80B
Revenue(TTM)636.89M
Net Income(TTM)129.63M
Analysts50
Price Target82.62 (14.34%)
Short Float %2.35%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.1%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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%
PT rev (3m)-0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)1.22%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 20.5 | ||
| P/S | 4.39 | ||
| P/FCF | 80.1 | ||
| P/OCF | 10.49 | ||
| P/B | 2.77 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)3.38
EY4.68%
EPS(NY)3.52
Fwd EY4.88%
FCF(TTM)0.9
FCFY1.25%
OCF(TTM)6.89
OCFY9.53%
SpS16.45
BVpS26.07
TBVpS26.07
PEG (NY)3.7
PEG (5Y)2.58
Graham Number44.53
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 | 1.85 |
F-Score6
WACC8.21%
ROIC/WACC0.75
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 Y5.78%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
EPS Next 5Y5.9%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%12.94%
Revenue Next Year5.66%
Revenue Next 2Y5.19%
Revenue Next 3Y4.76%
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 of AMERICAN STATES WATER CO (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.
Can you provide the financial health for AWR stock?
The financial health rating of AMERICAN STATES WATER CO (AWR) is 5 / 10.
What is the expected EPS growth for AMERICAN STATES WATER CO (AWR) stock?
The Earnings per Share (EPS) of AMERICAN STATES WATER CO (AWR) is expected to grow by 5.78% in the next year.