American States Water Company
American States Water Company Fundamental Analysis
American States Water Company (AWR) shows moderate financial fundamentals with a PE ratio of 22.52, profit margin of 19.82%, and ROE of 13.10%. The company generates $0.7B in annual revenue with strong year-over-year growth of 10.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AWR's fundamental strength across five key dimensions:
Efficiency Score
WeakAWR struggles to generate sufficient returns from assets.
Valuation Score
ModerateAWR shows balanced valuation metrics.
Growth Score
ModerateAWR shows steady but slowing expansion.
Financial Health Score
ExcellentAWR maintains a strong and stable balance sheet.
Profitability Score
WeakAWR struggles to sustain strong margins.
Key Financial Metrics
Is AWR Expensive or Cheap?
P/E Ratio
AWR trades at 22.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AWR's PEG of 3.57 indicates potential overvaluation.
Price to Book
The market values American States Water Company at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.18 times EBITDA. This is generally considered low.
How Well Does AWR Make Money?
Net Profit Margin
For every $100 in sales, American States Water Company keeps $19.82 as profit after all expenses.
Operating Margin
Core operations generate 30.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.10 in profit for every $100 of shareholder equity.
ROA
American States Water Company generates $4.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American States Water Company generates strong operating cash flow of $233.56M, reflecting robust business health.
Free Cash Flow
American States Water Company generates weak or negative free cash flow of $-7.21M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
AWR converts -0.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AWR Stacks Against Its Sector Peers
| Metric | AWR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.52 | 20.42 | Worse (Expensive) |
| ROE | 13.10% | 900.00% | Weak |
| Net Margin | 19.82% | 724.00% | Weak |
| Debt/Equity | 0.90 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 1.32 | 1.30 | Neutral |
| ROA | 4.80% | -4801.00% (disorted) | Weak |
AWR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American States Water Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.95%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
44.39%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
79.90%
Industry Style: Defensive, Dividend, Income
High Growth