American States Water Co. (AWR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consolidated Water Co. Ltd.

American Water Works Co., Inc.

American States Water Co.

Artesian Resources Corp.

SJW Group

California Water Service Group

Essential Utilities, Inc.

Middlesex Water Co.

Aris Water Solutions, Inc.

The York Water Co.

Select Water Solutions, Inc.

Why is American States Water Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.21% and Operating profit at 8.13% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 237.86 MM
DIVIDEND PER SHARE(HY) Highest at USD 4.28
INTEREST COVERAGE RATIO(Q) Highest at 519.54

With ROCE of 10.18%, it has a expensive valuation with a 2.06 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.22%, its profits have risen by 8.2% ; the PEG ratio of the company is 5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.22% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to American States Water Co. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is American States Water Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

American States Water Co.

-12.24%

0.16

21.18%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.21%

EBIT Growth (5y)

8.13%

EBIT to Interest (avg)

4.96

Debt to EBITDA (avg)

3.73

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

0.34

Tax Ratio

20.26%

Dividend Payout Ratio

56.55%

Pledged Shares

Institutional Holding

84.79%

ROCE (avg)

10.52%

ROE (avg)

13.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.09

EV to EBIT

20.27

EV to EBITDA

16.39

EV to Capital Employed

2.06

EV to Sales

6.37

PEG Ratio

4.98

Dividend Yield

ROCE (Latest)

10.18%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 237.86 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.28

INTEREST COVERAGE RATIO(Q)

Highest at 519.54

CASH AND EQV(HY)

Highest at USD 41.48 MM

DEBT-EQUITY RATIO (HY)

Lowest at 95.65 %

NET SALES(Q)

Highest at USD 163.07 MM

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.28 times

Here's what is working for American States Water Co.

Operating Cash Flow

Highest at USD 237.86 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 519.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 4.28 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 163.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 41.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 95.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 11.95 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for American States Water Co.

Debtors Turnover Ratio

Lowest at 4.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income