AMERICAN STATES WATER CO (AWR) Stock Fundamental Analysis
NYSE:AWR - New York Stock Exchange, Inc. - US0298991011 - Common Stock - Currency: USD
AWR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. While AWR belongs to the best of the industry regarding profitability, there are 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.
Each year in the past 5 years AWR has been profitable.
Each year in the past 5 years AWR had a positive operating cash flow.
1.2 Ratios
AWR has a better Return On Assets (4.81%) than 78.57% of its industry peers.
The Return On Equity of AWR (12.81%) is better than 92.86% of its industry peers.
AWR has a better Return On Invested Capital (6.18%) than 92.86% 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 5.00%.
The 3 year average ROIC (6.15%) for AWR is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROIC | 6.18% |
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 (20.15%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AWR has grown nicely.
AWR has a Operating Margin of 31.41%. This is comparable to the rest of the industry: AWR outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of AWR has grown nicely.
AWR's Gross Margin of 82.65% is fine compared to the rest of the industry. AWR outperforms 78.57% of its industry peers.
AWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% |
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
AWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AWR has more shares outstanding
AWR has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of AWR (1.87) is better than 78.57% of its industry peers.
AWR has a Debt/Equity ratio of 0.98. This is a neutral value indicating AWR is somewhat dependend on debt financing.
AWR has a Debt to Equity ratio of 0.98. This is comparable to the rest of the industry: AWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.8
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.81 indicates that AWR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, AWR is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that AWR may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, AWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
AWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.85%, which is quite good.
AWR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.28% yearly.
AWR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.79%.
AWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
EPS 1Y (TTM)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
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.
The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
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
AWR is valuated rather expensively with a Price/Earnings ratio of 23.22.
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 27.24.
The Price/Forward Earnings ratio is 21.52, which indicates a rather expensive current valuation of AWR.
AWR's Price/Forward Earnings ratio is in line with the industry average.
AWR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWR indicates a somewhat cheap valuation: AWR is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AWR may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)2.81
EPS Next 2Y5.2%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
AWR has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.50, AWR has a dividend in line with its industry peers.
AWR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
On average, the dividend of AWR grows each year by 8.98%, which is quite nice.
AWR has paid a dividend for at least 10 years, which is 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
AWR pays out 56.21% 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.
DP56.21%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
75.48
+0.74 (+0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner Change-0.56%
Ins Owners0.85%
Ins Owner Change4.43%
Market Cap2.91B
Analysts50.91
Price Target86.02 (13.96%)
Short Float %1.5%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend1.78
Dividend Growth(5Y)8.98%
DP56.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.03%
Min EPS beat(2)2.93%
Max EPS beat(2)15.13%
EPS beat(4)2
Avg EPS beat(4)2.69%
Min EPS beat(4)-4.02%
Max EPS beat(4)15.13%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)6
Avg EPS beat(12)-3.08%
EPS beat(16)8
Avg EPS beat(16)-2.98%
Revenue beat(2)2
Avg Revenue beat(2)6.46%
Min Revenue beat(2)0.48%
Max Revenue beat(2)12.45%
Revenue beat(4)3
Avg Revenue beat(4)5.96%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)12.45%
Revenue beat(8)5
Avg Revenue beat(8)6.36%
Revenue beat(12)6
Avg Revenue beat(12)5.39%
Revenue beat(16)8
Avg Revenue beat(16)3.22%
PT rev (1m)0%
PT rev (3m)4.55%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.52 | ||
| P/S | 4.78 | ||
| P/FCF | N/A | ||
| P/OCF | 14.68 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)3.25
EY4.31%
EPS(NY)3.51
Fwd EY4.65%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)5.14
OCFY6.81%
SpS15.79
BVpS24.84
TBVpS24.84
PEG (NY)4.92
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 12.81% | ||
| ROCE | 8.49% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 6.23% | ||
| OM | 31.41% | ||
| PM (TTM) | 20.15% | ||
| GM | 82.65% | ||
| 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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 557.65% | ||
| Cap/Sales | 41.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.87 |
F-Score4
WACC7.76%
ROIC/WACC0.8
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)12.85%
EPS 3Y7.52%
EPS 5Y8.28%
EPS Q2Q%12.9%
EPS Next Y4.72%
EPS Next 2Y5.2%
EPS Next 3Y5.35%
EPS Next 5Y5.9%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y6.07%
Revenue growth 5Y4.67%
Sales Q2Q%9.44%
Revenue Next Year6.09%
Revenue Next 2Y5.05%
Revenue Next 3Y4.26%
Revenue Next 5Y4.34%
EBIT growth 1Y3.58%
EBIT growth 3Y9.5%
EBIT growth 5Y7.79%
EBIT Next Year33.84%
EBIT Next 3Y15.73%
EBIT Next 5Y12.48%
FCF growth 1Y42.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.09%
OCF growth 3Y19.79%
OCF growth 5Y11.2%