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%)
We assign a fundamental rating of 6 out of 10 to AWR. AWR was compared to 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 is not valued too expensively and it also shows a decent growth rate.
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.
AWR had positive earnings in each of the past 5 years.
In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AWR (4.88%) is better than 80.00% of its industry peers.
With an excellent Return On Equity value of 12.84%, AWR belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.19%, AWR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
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 3 year average ROIC (6.15%) for AWR is below the current ROIC(6.19%), indicating increased profibility in the last year.
| 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 has a Profit Margin (20.35%) which is comparable to the rest of the industry.
AWR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 30.92%, AWR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AWR's Operating Margin has improved in the last couple of years.
AWR has a better Gross Margin (81.56%) than 80.00% 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 | 30.92% | ||
| 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
The debt/assets ratio for AWR has been reduced compared to a year ago.
2.2 Solvency
AWR has an Altman-Z score of 1.87. 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.
With a decent Altman-Z score value of 1.87, AWR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AWR has a debt to FCF ratio of 26.20. This is a negative value and a sign of low solvency as AWR would need 26.20 years to pay back of all of its debts.
AWR has a better Debt to FCF ratio (26.20) than 86.67% of its industry peers.
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.
Looking at the Current ratio, with a value of 1.27, AWR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that AWR should not have too much problems paying its short term obligations.
The Quick ratio of AWR (1.18) is better than 80.00% of its industry peers.
| 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.
The Revenue has been growing slightly by 4.67% on average over the past years.
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.
Based on estimates for the next years, AWR will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
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
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
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.
Based on the Price/Forward Earnings ratio of 20.97, the valuation of AWR can be described as rather expensive.
AWR's Price/Forward Earnings ratio is in line with 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
AWR's Enterprise Value to EBITDA ratio is in line with the industry average.
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
AWR has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.52, AWR has a dividend in line with its industry peers.
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 been paying a dividend for at least 10 years, so it has 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
56.10% of the earnings are spent on dividend by AWR. 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.
DP56.1%
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.