Avista Corporation
Avista Corporation Fundamental Analysis
Avista Corporation (AVA) shows weak financial fundamentals with a PE ratio of 16.48, profit margin of 15.29%, and ROE of 7.65%. The company generates $1.4B in annual revenue with weak year-over-year growth of 1.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVA's fundamental strength across five key dimensions:
Efficiency Score
WeakAVA struggles to generate sufficient returns from assets.
Valuation Score
ModerateAVA shows balanced valuation metrics.
Growth Score
WeakAVA faces weak or negative growth trends.
Financial Health Score
WeakAVA carries high financial risk with limited liquidity.
Profitability Score
ModerateAVA maintains healthy but balanced margins.
Key Financial Metrics
Is AVA Expensive or Cheap?
P/E Ratio
AVA trades at 16.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AVA's PEG of 2.27 indicates potential overvaluation.
Price to Book
The market values Avista Corporation at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.62 times EBITDA. This is generally considered low.
How Well Does AVA Make Money?
Net Profit Margin
For every $100 in sales, Avista Corporation keeps $15.29 as profit after all expenses.
Operating Margin
Core operations generate 17.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.65 in profit for every $100 of shareholder equity.
ROA
Avista Corporation generates $2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Avista Corporation generates strong operating cash flow of $470.14M, reflecting robust business health.
Free Cash Flow
Avista Corporation generates strong free cash flow of $470.14M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.70 in free cash annually.
FCF Yield
AVA converts 13.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AVA Stacks Against Its Sector Peers
| Metric | AVA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.48 | 20.39 | Better (Cheaper) |
| ROE | 7.65% | 911.00% | Weak |
| Net Margin | 15.29% | 735.00% | Weak |
| Debt/Equity | 1.13 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 0.90 | 1.30 | Weak Liquidity |
| ROA | 2.45% | 934.00% | Weak |
AVA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avista Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.70%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
25.10%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
18.92%
Industry Style: Defensive, Dividend, Income
High Growth