AMERICAN STATES WATER CO's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. AMERICAN STATES WATER CO has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.81% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||138.33||130.91|
|Net Income ($mil)||21.17||20.84|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||57.86||26.16|
|Total Assets ($mil)||1326.12||1351.05|
|Total Debt ($mil)||317.1||335.49|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||51.03||50.41|
|Return on Assets||4.47||4.52|
|Return on Equity||11.62||12.56|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||38.4||38.72|
|Div / share||0.21||0.2|
|Book value / share||13.29||12.58|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||156962.0||135833.0|
BUY. AMERICAN STATES WATER CO's P/E ratio indicates a premium compared to an average of 19.53 for the Water Utilities industry and a premium compared to the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 2.70 indicates valuation on par with the S&P 500 average of 2.76 and a premium versus the industry average of 1.94. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, AMERICAN STATES WATER CO proves to trade at a premium to investment alternatives within the industry.
|AWR 23.72||Peers 19.53||AWR 8.18||Peers 19.72|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AWR is trading at a premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AWR is trading at a significant discount to its peers.
|AWR 22.39||Peers 20.55||AWR NM||Peers 2.82|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
AWR is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AWR's negative PEG ratio makes this valuation measure meaningless.
|AWR 2.70||Peers 1.94||AWR -3.52||Peers 14.19|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AWR is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AWR is expected to significantly trail its peers on the basis of its earnings growth rate.
|AWR 2.95||Peers 6.60||AWR -1.67||Peers 3.89|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AWR is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AWR significantly trails its peers on the basis of sales growth
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