American States Water Co
Find Ratings ReportsAMERICAN STATES WATER CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. AMERICAN STATES WATER CO 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 7.62% 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 | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 113.2 | 111.95 |
| EBITDA ($mil) | 43.16 | 41.38 |
| EBIT ($mil) | 33.52 | 31.77 |
| Net Income ($mil) | 22.79 | 16.74 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 2.12 | 4.52 |
| Total Assets ($mil) | 1462.65 | 1406.3 |
| Total Debt ($mil) | 365.31 | 384.73 |
| Equity ($mil) | 513.03 | 476.7 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 56.2 | 55.97 |
| EBITDA Margin | 38.13 | 36.95 |
| Operating Margin | 29.61 | 28.38 |
| Sales Turnover | 0.3 | 0.32 |
| Return on Assets | 4.67 | 4.23 |
| Return on Equity | 13.32 | 12.49 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.06 | 0.83 |
| Debt/Capital | 0.42 | 0.45 |
| Interest Expense | 5.93 | 5.6 |
| Interest Coverage | 5.66 | 5.67 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 36.65 | 36.56 |
| Div / share | 0.24 | 0.22 |
| EPS | 0.62 | 0.45 |
| Book value / share | 14.0 | 13.04 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 115068.0 | 139955.0 |
BUY. AMERICAN STATES WATER CO's P/E ratio indicates a premium compared to an average of 25.14 for the Water Utilities industry and a premium compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 3.68 indicates a premium versus the S&P 500 average of 3.03 and a premium versus the industry average of 2.63. 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 27.81 | Peers 25.14 | AWR 15.21 | Peers 12.09 | |||||||||||||||||||||
|
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 28.66 | Peers 22.26 | AWR 5.64 | Peers 3.17 | |||||||||||||||||||||
|
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 |
|
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| AWR 3.68 | Peers 2.63 | AWR 15.62 | Peers 71.46 | |||||||||||||||||||||
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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 4.26 | Peers 10.00 | AWR -1.33 | Peers 12.84 | |||||||||||||||||||||
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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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