Aqua America Inc

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WTR : NYSE : Utilities
$31.85 up 0.19 | 0.6%
Today's Range: 31.72 - 31.94
Avg. Daily Volume: 580000.0
03/24/17 - 3:59 PM ET

Financial Analysis


AQUA AMERICA INC's gross profit margin for the fourth 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 very weak liquidity. Currently, the Quick Ratio is 0.34 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 7.19% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)196.8197.07
EBITDA ($mil)105.3106.38
EBIT ($mil)71.9674.62
Net Income ($mil)49.6528.43


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3.763.23
Total Assets ($mil)6158.995741.04
Total Debt ($mil)1894.811795.93
Equity ($mil)1850.071725.93


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin53.5153.98
EBITDA Margin53.553.97
Operating Margin36.5737.86
Sales Turnover0.130.14
Return on Assets3.83.51
Return on Equity12.6511.69
Debt Q4 FY16 Q4 FY15
Current Ratio0.430.66
Debt/Capital0.510.51
Interest Expense20.4619.73
Interest Coverage3.523.78


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)177.39176.54
Div / share0.190.18
EPS0.280.16
Book value / share10.439.78
Institutional Own % n/a n/a
Avg Daily Volume568206.0858396.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 23.68 for the Water Utilities industry and a discount compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 2.99 indicates valuation on par with the S&P 500 average of 2.98 and a premium versus the industry average of 2.54. 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 23.81 Peers 23.68   WTR 13.98 Peers 12.79

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.

 

Average. 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 valuation on par 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 21.51 Peers 19.99   WTR 6.17 Peers 2.45

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 2.99 Peers 2.54   WTR 15.92 Peers 2274.71

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 6.75 Peers 12.61   WTR 0.69 Peers 13.60

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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