AQUA AMERICA INC'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. AQUA AMERICA INC has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.68% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||210.54||202.32|
|Net Income ($mil)||68.0||63.62|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||4.84||6.39|
|Total Assets ($mil)||5307.18||5074.1|
|Total Debt ($mil)||1654.0||1630.57|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||59.15||57.39|
|Return on Assets||4.21||4.53|
|Return on Equity||13.1||14.78|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||176.7||176.7|
|Div / share||0.17||0.15|
|Book value / share||9.14||8.49|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||633929.0||698014.0|
BUY. AQUA AMERICA INC's P/E ratio indicates a premium compared to an average of 19.24 for the Water Utilities industry and a premium compared to the S&P 500 average of 19.74. For additional comparison, its price-to-book ratio of 2.87 indicates valuation on par with the S&P 500 average of 2.73 and a premium versus the industry average of 1.91. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, AQUA AMERICA INC proves to trade at a premium to investment alternatives within the industry.
|WTR 22.08||Peers 19.24||WTR 12.80||Peers 16.83|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
WTR 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.
WTR is trading at a discount to its peers.
|WTR 20.85||Peers 19.73||WTR 6.42||Peers 2.88|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
WTR is trading at a premium to its peers.
Premium. 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.
WTR trades at a significant premium to its peers.
|WTR 2.87||Peers 1.91||WTR -5.86||Peers 14.20|
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.
WTR 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, WTR is expected to significantly trail its peers on the basis of its earnings growth rate.
|WTR 5.97||Peers 6.13||WTR 1.94||Peers 3.74|
Average. 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.
WTR is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WTR significantly trails its peers on the basis of sales growth
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