Aqua America Inc

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WTR : NYSE : Utilities
$31.41 -0.12 | -0.38%
Today's Range: 31.30 - 31.66
Avg. Daily Volume: 723,900
09/26/16 - 4:02 PM ET

Financial Analysis


AQUA AMERICA INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. AQUA AMERICA INC has weak liquidity. Currently, the Quick Ratio is 0.58 which 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 5.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)203.88205.76
EBITDA ($mil)115.11111.3
EBIT ($mil)83.4980.25
Net Income ($mil)59.6357.38


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4.924.62
Total Assets ($mil)5922.845600.28
Total Debt ($mil)1840.331735.34
Equity ($mil)1791.161702.93


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin56.4654.09
EBITDA Margin56.4654.08
Operating Margin40.9539.0
Sales Turnover0.140.14
Return on Assets3.494.29
Return on Equity11.5613.07
Debt Q2 FY16 Q2 FY15
Current Ratio0.740.86
Debt/Capital0.510.5
Interest Expense20.1218.9
Interest Coverage4.154.25


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)177.32176.96
Div / share0.180.17
EPS0.330.32
Book value / share10.19.62
Institutional Own % n/a n/a
Avg Daily Volume730760.0734106.0

Valuation


BUY. AQUA AMERICA INC's P/E ratio indicates a premium compared to an average of 23.64 for the Water Utilities industry and a premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 2.51. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AQUA AMERICA INC 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
WTR 27.30 Peers 23.64   WTR 14.30 Peers 11.11

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

WTR 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.

WTR 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
WTR 22.62 Peers 21.60   WTR 1.64 Peers 3.75

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

WTR is trading at a premium to its peers.

 

Discount. 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.

WTR trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WTR 3.14 Peers 2.51   WTR -7.20 Peers 11.82

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.

WTR 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, WTR 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
WTR 6.89 Peers 5.77   WTR 2.07 Peers 2.27

Premium. 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.

WTR is trading at a premium to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

WTR is keeping pace with its peers on the basis of sales growth.

 

 

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