Aqua America Inc

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WTR : NYSE : Utilities
$32.76 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 660300.0
05/25/17 - 4:01 PM ET

Financial Analysis


AQUA AMERICA INC'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. Sales and net income have dropped, underperforming the average competitor within its industry. AQUA AMERICA INC has very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.04% 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 ($mil)187.79192.61
EBITDA ($mil)103.73104.48
EBIT ($mil)69.972.33
Net Income ($mil)49.0751.74


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)4.433.98
Total Assets ($mil)6235.65815.44
Total Debt ($mil)1944.541801.25
Equity ($mil)1867.231760.71


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin55.2454.24
EBITDA Margin55.2354.24
Operating Margin37.2237.55
Sales Turnover0.130.14
Return on Assets3.713.52
Return on Equity12.3911.64
Debt Q1 FY17 Q1 FY16
Current Ratio0.440.7
Debt/Capital0.510.51
Interest Expense21.3319.85
Interest Coverage3.283.64


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)177.58177.27
Div / share0.190.18
EPS0.280.29
Book value / share10.519.93
Institutional Own % n/a n/a
Avg Daily Volume658246.0624683.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 23.37 for the Water Utilities industry and a value on par with the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 2.98 indicates valuation on par with the S&P 500 average of 3.00 and a premium versus the industry average of 2.45. 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, 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 24.12 Peers 23.37   WTR 14.56 Peers 11.54

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

WTR 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.

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 21.62 Peers 20.57   WTR 7.96 Peers 2.98

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.

 

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.

WTR 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
WTR 2.98 Peers 2.45   WTR 13.04 Peers 1937.23

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 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 6.83 Peers 14.50   WTR -0.18 Peers 9.41

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.

WTR 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.

WTR significantly trails its peers on the basis of sales growth

 

 

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