AMERICAN STATES WATER CO (AWR)
US0298991011 - Common Stock
We assign a fundamental rating of 5 out of 10 to AWR. AWR was compared to 14 industry peers in the Water Utilities industry. While AWR has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, AWR is valued expensive at the moment.
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.
Each year in the past 5 years AWR has been profitable.
In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.54%, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Equity of AWR (16.05%) is better than 92.86% of its industry peers.
The Return On Invested Capital of AWR (7.04%) is better than 85.71% 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 5.16%.
The last Return On Invested Capital (7.04%) for AWR is above the 3 year average (6.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 16.05% | ||
| ROIC | 7.04% |
ROA(3y)4.78%
ROA(5y)4.85%
ROE(3y)13.6%
ROE(5y)13.63%
ROIC(3y)6.04%
ROIC(5y)6.06%
1.3 Margins
With a decent Profit Margin value of 20.91%, AWR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
AWR's Profit Margin has improved in the last couple of years.
AWR's Operating Margin of 33.02% is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of AWR has grown nicely.
The Gross Margin of AWR (83.39%) is better than 92.86% of its industry peers.
AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.02% | ||
| PM (TTM) | 20.91% | ||
| GM | 83.39% |
OM growth 3Y7.29%
OM growth 5Y7.4%
PM growth 3Y5.84%
PM growth 5Y7.54%
GM growth 3Y1.17%
GM growth 5Y0.96%
2. Health
2.1 Basic Checks
AWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AWR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AWR has more shares outstanding
The debt/assets ratio for AWR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.00, AWR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
AWR has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
AWR has a worse Debt to Equity ratio (1.17) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.87
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.24 indicates that AWR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.24, AWR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that AWR should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.13, AWR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.12%, which is quite impressive.
AWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.47% yearly.
Looking at the last year, AWR shows a very strong growth in Revenue. The Revenue has grown by 21.17%.
Measured over the past years, AWR shows a small growth in Revenue. The Revenue has been growing by 6.40% on average per year.
EPS 1Y (TTM)34.12%
EPS 3Y6.69%
EPS 5Y10.47%
EPS growth Q2Q10%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y6.86%
Revenue growth 5Y6.4%
Revenue growth Q2Q-0.18%
3.2 Future
AWR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.41% yearly.
Based on estimates for the next years, AWR will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y7.78%
EPS Next 2Y8.03%
EPS Next 3Y7.7%
EPS Next 5Y7.41%
Revenue Next Year-0.02%
Revenue Next 2Y3.09%
Revenue Next 3Y2.79%
Revenue Next 5Y3.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.98, the valuation of AWR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AWR.
AWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 24.11, which indicates a rather expensive current valuation of AWR.
64.29% of the companies in the same industry are cheaper than AWR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than AWR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.85 |
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)3.34
PEG (5Y)2.48
EPS Next 2Y8.03%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, AWR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.76, AWR pays a bit more dividend than its industry peers.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of AWR is nicely growing with an annual growth rate of 9.34%!
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)9.34%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
AWR pays out 49.14% 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.
DP49.14%
EPS Next 2Y8.03%
EPS Next 3Y7.7%
AMERICAN STATES WATER CO
NYSE:AWR (5/3/2024, 7:04:00 PM)
After market: 73.53 0 (0%)73.53
+0.74 (+1.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 24.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.34
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 16.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.02% | ||
| PM (TTM) | 20.91% | ||
| GM | 83.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.12%
EPS 3Y6.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.17%
Revenue growth 3Y6.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y