American States Water Co.

Find Ratings Reports
AWR : NYSE : Utilities
$54.51 | %
Today's Range: 53.33 - 54.67
Avg. Daily Volume: 304300.0
02/23/18 - 4:02 PM ET

Financial Analysis


AMERICAN STATES WATER CO's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AMERICAN STATES WATER CO has very weak liquidity. Currently, the Quick Ratio is 0.49 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 7.13% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)124.42123.81
EBITDA ($mil)48.449.1
EBIT ($mil)38.5539.62
Net Income ($mil)21.0121.64


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)6.662.79
Total Assets ($mil)1486.491440.39
Total Debt ($mil)367.28398.23
Equity ($mil)525.81490.8


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin56.4255.63
EBITDA Margin38.939.66
Operating Margin30.9832.0
Sales Turnover0.30.31
Return on Assets4.554.17
Return on Equity12.8712.25
Debt Q3 FY17 Q3 FY16
Current Ratio0.970.76
Debt/Capital0.410.45
Interest Expense5.785.73
Interest Coverage6.686.91


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)36.6836.57
Div / share0.260.22
EPS0.570.59
Book value / share14.3413.42
Institutional Own % n/a n/a
Avg Daily Volume316507.0156764.0

Valuation


BUY. AMERICAN STATES WATER CO's P/E ratio indicates a premium compared to an average of 23.21 for the Water Utilities industry and a premium compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 3.71 indicates a premium versus the S&P 500 average of 3.26 and a premium versus the industry average of 2.86. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AWR 29.03 Peers 23.21   AWR 13.95 Peers 41.05

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AWR is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AWR 29.52 Peers 22.27   AWR 5.41 Peers 3.50

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AWR 3.71 Peers 2.86   AWR 12.26 Peers 16.54

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWR 4.40 Peers 11.18   AWR 0.86 Peers 6.38

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

 

 

Latest Stock Upgrades/Downgrades