American States Water Co

Find Ratings Reports
AWR : NYSE : Utilities
$43.84 | %
Today's Range: 43.29 - 44.02
Avg. Daily Volume: 177,900
07/22/16 - 4:02 PM ET

Financial Analysis


AMERICAN STATES WATER CO's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AMERICAN STATES WATER CO has very weak liquidity. Currently, the Quick Ratio is 0.40 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.02% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)93.53100.93
EBITDA ($mil)31.0235.44
EBIT ($mil)21.2324.89
Net Income ($mil)10.1512.15


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)8.4674.68
Total Assets ($mil)1368.891367.42
Total Debt ($mil)364.23326.02
Equity ($mil)467.4497.37


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin55.3854.46
EBITDA Margin33.1735.11
Operating Margin22.724.66
Sales Turnover0.330.34
Return on Assets4.274.54
Return on Equity12.5112.5
Debt Q1 FY16 Q1 FY15
Current Ratio0.941.96
Debt/Capital0.440.4
Interest Expense5.625.23
Interest Coverage3.784.76


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)36.5537.78
Div / share0.220.21
EPS0.280.32
Book value / share12.7913.16
Institutional Own % n/a n/a
Avg Daily Volume190442.0232043.0

Valuation


BUY. AMERICAN STATES WATER CO's P/E ratio indicates a premium compared to an average of 25.76 for the Water Utilities industry and a premium compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 3.37 indicates a premium versus the S&P 500 average of 2.80 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AWR 27.58 Peers 25.76   AWR 18.36 Peers 11.81

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AWR is trading at a valuation on par with 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 24.59 Peers 23.05   AWR 5.89 Peers 3.66

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 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 3.37 Peers 2.63   AWR -2.50 Peers 2.81

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 3.49 Peers 5.96   AWR -2.92 Peers 2.42

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