AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
USA - NYSE:AWR - US0298991011 - Common Stock
76.42 USD
-0.63 (-0.82%)
76.42 USD
0 (0%)
AWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
AWR had positive earnings in the past year.
AWR had a positive operating cash flow in the past year.
In the past 5 years AWR has always been profitable.
In the past 5 years AWR always reported a positive cash flow from operatings.
1.2 Ratios
AWR's Return On Assets of 4.76% is fine compared to the rest of the industry. AWR outperforms 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 Return On Invested Capital of 6.02%. This is amongst the best in the industry. AWR outperforms 93.33% 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 4.85%.
| 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
With a Profit Margin value of 20.19%, AWR perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Profit Margin of AWR has grown nicely.
Looking at the Operating Margin, with a value of 30.89%, AWR is in line with its industry, outperforming 60.00% of the companies in the same 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.
AWR's Gross Margin has been stable in the last couple of years.
| 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
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.
AWR has more shares outstanding than it did 5 years ago.
AWR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that AWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AWR has a Altman-Z score of 1.91. This is in the better half of the industry: AWR outperforms 73.33% of its industry peers.
AWR has a Debt/Equity ratio of 0.97. This is a neutral value indicating AWR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, AWR is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC0.69
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AWR should not have too much problems paying 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.
AWR has a Quick ratio of 1.46. This is in the better half of the industry: AWR outperforms 73.33% of its industry peers.
| 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.
Measured over the past years, AWR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.28% on average per year.
AWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.55%.
Measured over the past years, AWR shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
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 23.37, AWR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AWR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.77, AWR is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.72, the valuation of AWR can be described as rather expensive.
AWR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, AWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AWR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AWR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.19
PEG (5Y)2.82
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.
AWR's Dividend Yield is comparable with the industry average which is at 3.17.
Compared to an average S&P500 Dividend Yield of 2.36, AWR has a dividend comparable with the average S&P500 company.
| 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.
The dividend of AWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.92%
EPS Next 2Y5.35%
EPS Next 3Y6.02%
76.42
-0.63 (-0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.03%
Inst Owner Change0.47%
Ins Owners0.85%
Ins Owner Change0.89%
Market Cap2.94B
Revenue(TTM)615.96M
Net Income(TTM)124.33M
Analysts50
Price Target83.13 (8.78%)
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 | 23.37 | ||
| Fwd PE | 21.72 | ||
| P/S | 4.78 | ||
| P/FCF | N/A | ||
| P/OCF | 12.37 | ||
| P/B | 3.03 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 16.35 |
EPS(TTM)3.27
EY4.28%
EPS(NY)3.52
Fwd EY4.6%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)6.18
OCFY8.08%
SpS15.99
BVpS25.25
TBVpS25.25
PEG (NY)5.19
PEG (5Y)2.82
Graham Number43.11
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%
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-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 | 1.91 |
F-Score5
WACC8.71%
ROIC/WACC0.69
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%