AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AWR • US0298991011
72.96 USD
+0.62 (+0.86%)
At close: Jan 30, 2026
72.96 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
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. AWR scores excellent on profitability, but 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.
- In the past year AWR had a positive cash flow from operations.
- In the past 5 years AWR has always been profitable.
- AWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.88%, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.84%, AWR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 6.19%, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AWR is in line with the industry average of 4.99%.
- 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
- Looking at the Profit Margin, with a value of 20.35%, AWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
- AWR's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 30.92%, AWR is in line with its industry, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Operating Margin of AWR has grown nicely.
- The Gross Margin of AWR (81.56%) is better than 85.71% 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.
- AWR has more shares outstanding than it did 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 1.85. 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.
- AWR has a better Altman-Z score (1.85) than 78.57% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 26.20, AWR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- AWR has a Debt/Equity ratio of 0.91. This is a neutral value indicating AWR is somewhat dependend on debt financing.
- AWR has a Debt to Equity ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 26.2 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.75
WACC8.24%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that AWR should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.27, AWR belongs to the top of the industry, outperforming 85.71% 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.
- With a decent Quick ratio value of 1.18, AWR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| 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.
- The Revenue has grown by 10.28% in the past year. This is quite good.
- 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
- 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 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.
- 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 21.59, which indicates a rather expensive current valuation of AWR.
- AWR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of AWR to the average of the S&P500 Index (28.30), we can say AWR is valued slightly cheaper.
- A Price/Forward Earnings ratio of 20.70 indicates a rather expensive valuation of AWR.
- 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 20.7 |
4.2 Price Multiples
- AWR's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, AWR is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.88 | ||
| EV/EBITDA | 15.08 |
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 excellent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)2.61
EPS Next 2Y5.45%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- AWR has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.93, AWR has a dividend in line with its industry peers.
- AWR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
- AWR pays out 56.10% 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.
DP56.1%
EPS Next 2Y5.45%
EPS Next 3Y6.06%
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.