American States Water Co

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AWR : NYSE : Utilities
$48.09 -0.11 | -0.23%
Today's Range: 47.94 - 48.57
Avg. Daily Volume: 127600.0
06/26/17 - 4:02 PM ET

Financial Analysis


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 ($mil)98.8193.53
EBITDA ($mil)34.4231.02
EBIT ($mil)24.7421.23
Net Income ($mil)12.710.15


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)0.628.46
Total Assets ($mil)1480.271368.89
Total Debt ($mil)417.32364.23
Equity ($mil)497.94467.4


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin55.3755.38
EBITDA Margin34.8333.17
Operating Margin25.0422.7
Sales Turnover0.30.33
Return on Assets4.24.27
Return on Equity12.5112.51
Debt Q1 FY17 Q1 FY16
Current Ratio1.080.94
Debt/Capital0.460.44
Interest Expense5.915.62
Interest Coverage4.193.78


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)36.6236.55
Div / share0.240.22
EPS0.340.28
Book value / share13.612.79
Institutional Own % n/a n/a
Avg Daily Volume126486.0128596.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWR 3.99 Peers 11.37   AWR -2.19 Peers 12.71

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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