American States Water Co
Find Ratings Reports
-0.11 |
-0.23%
AMERICAN STATES WATER CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AMERICAN STATES WATER CO has very weak liquidity. Currently, the Quick Ratio is 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 6.53% 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 | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Net Sales ($mil) | 98.81 | 93.53 |
| EBITDA ($mil) | 34.42 | 31.02 |
| EBIT ($mil) | 24.74 | 21.23 |
| Net Income ($mil) | 12.7 | 10.15 |
| Balance Sheet | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 0.62 | 8.46 |
| Total Assets ($mil) | 1480.27 | 1368.89 |
| Total Debt ($mil) | 417.32 | 364.23 |
| Equity ($mil) | 497.94 | 467.4 |
| Profitability | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Gross Profit Margin | 55.37 | 55.38 |
| EBITDA Margin | 34.83 | 33.17 |
| Operating Margin | 25.04 | 22.7 |
| Sales Turnover | 0.3 | 0.33 |
| Return on Assets | 4.2 | 4.27 |
| Return on Equity | 12.51 | 12.51 |
| Debt | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Current Ratio | 1.08 | 0.94 |
| Debt/Capital | 0.46 | 0.44 |
| Interest Expense | 5.91 | 5.62 |
| Interest Coverage | 4.19 | 3.78 |
| Share Data | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Shares outstanding (mil) | 36.62 | 36.55 |
| Div / share | 0.24 | 0.22 |
| EPS | 0.34 | 0.28 |
| Book value / share | 13.6 | 12.79 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 126486.0 | 128596.0 |
BUY. AMERICAN STATES WATER CO's P/E ratio indicates a premium compared to an average of 24.81 for the Water Utilities industry and a premium compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 3.53 indicates a premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 2.64. 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AWR 28.60 | Peers 24.81 | AWR 18.06 | Peers 12.36 | |||||||||||||||||||||
|
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. |
Premium. 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 premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AWR 26.69 | Peers 22.15 | AWR 6.19 | Peers 2.99 | |||||||||||||||||||||
|
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 significant 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. AWR trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| AWR 3.53 | Peers 2.64 | AWR 7.69 | Peers 68.50 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| AWR 3.99 | Peers 11.37 | AWR -2.19 | Peers 12.71 | |||||||||||||||||||||
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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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