AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - NYSE:AWR - US0298991011 - Common Stock
75.47 USD
+0.2 (+0.27%)
75.47 USD
0 (0%)
Taking everything into account, AWR scores 5 out of 10 in our fundamental rating. AWR was compared to 15 industry peers in the Water Utilities industry. AWR scores excellent on profitability, but there are some minor 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
In the past year AWR was profitable.
AWR had a positive operating cash flow in the past year.
In the past 5 years AWR has always 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 80.00% 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 93.33% of the companies in the same industry.
AWR has a better Return On Invested Capital (6.02%) than 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AWR is in line with the industry average of 4.85%.
| 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
AWR has a Profit Margin (20.19%) which 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.
With a decent Gross Margin value of 81.58%, AWR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AWR is destroying value.
Compared to 1 year ago, AWR has more shares outstanding
The number of shares outstanding for AWR has been increased compared to 5 years ago.
Compared to 1 year ago, AWR has an improved debt to assets ratio.
2.2 Solvency
AWR has an Altman-Z score of 1.90. 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 1.90, AWR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
AWR has a Debt/Equity ratio of 0.97. This is a neutral value indicating AWR is somewhat dependend on debt financing.
The Debt to Equity ratio of AWR (0.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC0.75
WACC7.97%
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.
The Current ratio of AWR (1.56) is better than 73.33% of its industry peers.
A Quick Ratio of 1.46 indicates that AWR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, AWR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.94%, which is quite good.
The Earnings Per Share has been growing by 8.28% on average over the past years. This is quite good.
AWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.55%.
The Revenue has been growing slightly by 4.67% on average over the past years.
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.
The Revenue is expected to grow by 4.34% on average over the next years.
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
With a Price/Earnings ratio of 23.08, AWR is valued on the expensive side.
AWR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, AWR is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.45, the valuation of AWR can be described as rather expensive.
AWR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.94. AWR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
AWR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.19 |
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)2.79
EPS Next 2Y5.35%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, AWR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, AWR has a dividend in line with its industry peers.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of AWR is nicely growing with an annual growth rate of 8.98%!
AWR has paid a dividend for at least 10 years, which is 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 56.92% 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.
DP56.92%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
75.47
+0.2 (+0.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change0.37%
Ins Owners0.85%
Ins Owner Change0.89%
Market Cap2.91B
Analysts50
Price Target83.13 (10.15%)
Short Float %1.56%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)0%
PT rev (3m)-3.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.2%
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 | 23.08 | ||
| Fwd PE | 21.45 | ||
| P/S | 4.72 | ||
| P/FCF | N/A | ||
| P/OCF | 12.22 | ||
| P/B | 2.99 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)3.27
EY4.33%
EPS(NY)3.52
Fwd EY4.66%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)6.18
OCFY8.18%
SpS15.99
BVpS25.25
TBVpS25.25
PEG (NY)5.12
PEG (5Y)2.79
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 | 1.9 |
F-Score5
WACC7.97%
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)13.94%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%2.35%
EPS Next Y4.5%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
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 Year33.31%
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%