NYSE:AVA

Stock Analysis Report

Executive Summary

Avista Corporation operates as an electric and natural gas utility company.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Avista's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

AVA

-1.5%

US Integrated Utilities

1.3%

US Market


1 Year Return

-6.0%

AVA

18.6%

US Integrated Utilities

5.9%

US Market

Return vs Industry: AVA underperformed the US Integrated Utilities industry which returned 18.6% over the past year.

Return vs Market: AVA underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

AVAIndustryMarket
7 Day-1.1%-1.5%1.3%
30 Day-0.3%1.4%-1.9%
90 Day5.2%3.7%-1.8%
1 Year-2.7%-6.0%22.8%18.6%8.3%5.9%
3 Year32.2%20.1%45.6%30.9%45.6%36.2%
5 Year69.0%42.4%74.3%39.8%66.1%47.9%

Price Volatility Vs. Market

How volatile is Avista's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avista undervalued compared to its fair value and its price relative to the market?

15.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AVA ($47.92) is trading above our estimate of fair value ($33.88)

Significantly Undervalued: AVA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVA is good value based on its PE Ratio (16x) compared to the Integrated Utilities industry average (21.5x).

PE vs Market: AVA is good value based on its PE Ratio (16x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: AVA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AVA is good value based on its PB Ratio (1.7x) compared to the US Integrated Utilities industry average (2.1x).


Next Steps

Future Growth

How is Avista forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVA's earnings are forecast to decline over the next 3 years (-10.9% per year).

Earnings vs Market: AVA's earnings are forecast to decline over the next 3 years (-10.9% per year).

High Growth Earnings: AVA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AVA's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AVA's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AVA's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Avista performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVA's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: AVA's earnings growth over the past year (75.2%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: AVA earnings growth over the past year (75.2%) exceeded the Integrated Utilities industry -11.4%.


Return on Equity

High ROE: AVA's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: AVA has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: AVA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Avista's financial position?


Financial Position Analysis

Short Term Liabilities: AVA's short term assets ($269.8M) do not cover its short term liabilities ($516.7M)

Long Term Liabilities: AVA's short term assets (269.8M) do not cover its long term liabilities (3.5B)


Debt to Equity History and Analysis

Debt Level: AVA's debt to equity ratio (109.9%) is considered high

Reducing Debt: AVA's debt to equity ratio has increased from 106.3% to 109.9% over the past 5 years.

Debt Coverage: AVA's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: AVA's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: AVA has a high level of physical assets or inventory.

Debt Coverage by Assets: AVA's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Avista's current dividend yield, its reliability and sustainability?

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AVA's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AVA's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: AVA's dividends per share have been stable in the past 10 years.

Growing Dividend: AVA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), AVA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVA's dividends in 3 years are forecast to be covered by earnings (72.4% payout ratio).


Next Steps

Management

What is the CEO of Avista's salary, the management and board of directors tenure and is there insider trading?

14.2yrs

Average management tenure


CEO

Dennis Vermillion (57yo)

0yrs

Tenure

US$1,466,641

Compensation

Mr. Dennis P. Vermillion has been the President and Director of Avista Corporation since January 1, 2018 and as its Chief Executive Officer since October 1, 2019. Mr. Vermillion is Director of Alaska Elect ...


CEO Compensation Analysis

Compensation vs. Market: Dennis has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Management Age and Tenure

14.2yrs

Average Tenure

60yo

Average Age

Experienced Management: AVA's management team is seasoned and experienced (14.2 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

60yo

Average Age

Experienced Board: AVA's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: AVA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$304,33029 Aug 19
Jason Thackston
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Energy Resources & Environmental Compliance Officer
Shares6,500
Max PriceUS$46.82
SellUS$67,27029 Aug 19
R. Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,438
Max PriceUS$46.78
SellUS$35,68227 Aug 19
James Kensok
EntityIndividual
Role
Chief Information Officer
VP, Chief Information Officer & Chief Security Officer
Shares760
Max PriceUS$46.95
SellUS$441,27517 Jun 19
Marian Durkin
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,004
Max PriceUS$44.11
SellUS$1,019,50513 Jun 19
Scott Morris
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares23,000
Max PriceUS$44.33
SellUS$25,32204 Jun 19
R. Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares600
Max PriceUS$42.21
SellUS$32,58829 May 19
Kevin Christie
EntityIndividual
Shares780
Max PriceUS$41.78
SellUS$83,84428 May 19
Heidi Stanley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$41.92
SellUS$244,90006 May 19
Scott Morris
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares6,100
Max PriceUS$40.60
SellUS$21,77506 May 19
James Kensok
EntityIndividual
Role
Chief Information Officer
VP, Chief Information Officer & Chief Security Officer
Shares500
Max PriceUS$43.55
SellUS$54,47506 May 19
Jason Thackston
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Energy Resources & Environmental Compliance Officer
Shares1,250
Max PriceUS$43.58
SellUS$115,11506 Mar 19
Jason Thackston
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Energy Resources & Environmental Compliance Officer
Shares2,875
Max PriceUS$40.04
SellUS$19,99505 Mar 19
James Kensok
EntityIndividual
Role
Chief Information Officer
VP, Chief Information Officer & Chief Security Officer
Shares500
Max PriceUS$39.99
SellUS$244,90001 Mar 19
Scott Morris
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares6,100
Max PriceUS$40.60
SellUS$107,78220 Feb 19
R. Taylor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,600
Max PriceUS$41.45
SellUS$751,70420 Feb 19
Karen Feltes
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares18,224
Max PriceUS$41.25
SellUS$59,41119 Feb 19
David Meyer
EntityIndividual
Role
Senior Key Executive
VP and Chief Counsel for Regulatory & Government Affairs
Shares1,437
Max PriceUS$41.34

Ownership Breakdown


Management Team

  • David Meyer (65yo)

    VP and Chief Counsel for Regulatory & Government Affairs

    • Tenure: 21.1yrs
    • Compensation: US$519.93k
  • Mark Thies (55yo)

    Executive VP

    • Tenure: 11.1yrs
    • Compensation: US$1.44m
  • Scott Morris (61yo)

    Executive Chairman

    • Tenure: 11.8yrs
    • Compensation: US$3.82m
  • Dennis Vermillion (57yo)

    CEO, President & Director

    • Tenure: 0yrs
    • Compensation: US$1.47m
  • Karen Feltes (63yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 17.7yrs
    • Compensation: US$1.14m
  • Marian Durkin (65yo)

    Senior VP

    • Tenure: 14.2yrs
    • Compensation: US$1.21m
  • James Kensok (60yo)

    VP, Chief Information Officer & Chief Security Officer

    • Tenure: 18.7yrs
  • Jason Thackston (49yo)

    Senior Vice President of Energy Resources & Environmental Compliance Officer

    • Tenure: 6.8yrs
  • Ryan Krasselt (49yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 4yrs
  • John Wilcox

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Heidi Stanley (62yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: US$180.00k
  • Scott Morris (61yo)

    Executive Chairman

    • Tenure: 11.8yrs
    • Compensation: US$3.82m
  • R. Taylor (69yo)

    Director

    • Tenure: 34.8yrs
    • Compensation: US$194.69k
  • Kristianne Blake (65yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: US$213.75k
  • Dennis Vermillion (57yo)

    CEO, President & Director

    • Tenure: 0yrs
    • Compensation: US$1.47m
  • Marc Racicot (70yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$172.50k
  • Don Burke (59yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$195.00k
  • Becky Klein (53yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: US$185.50k
  • Janet Widmann (52yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$171.00k
  • Scott Maw (52yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$175.50k

Company Information

Avista Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avista Corporation
  • Ticker: AVA
  • Exchange: NYSE
  • Founded: 1889
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$3.168b
  • Shares outstanding: 66.11m
  • Website: https://www.myavista.com

Number of Employees


Location

  • Avista Corporation
  • 1411 East Mission Avenue
  • Spokane
  • Washington
  • 99202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AV6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
AV6BST (Boerse-Stuttgart)YesCommon StockDEEURJan 1968

Biography

Avista Corporation operates as an electric and natural gas utility company. It operates through two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and tra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:31
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.