NYSE:AVA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

6 star dividend payer and slightly overvalued.


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

Stable Share Price: AVA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

AVA

2.2%

US Integrated Utilities

0.4%

US Market


1 Year Return

-26.6%

AVA

-3.1%

US Integrated Utilities

17.8%

US Market

Return vs Industry: AVA underperformed the US Integrated Utilities industry which returned -3.1% over the past year.

Return vs Market: AVA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

AVAIndustryMarket
7 Day5.5%2.2%0.4%
30 Day3.2%8.1%6.1%
90 Day-6.6%6.2%8.9%
1 Year-23.8%-26.6%0.5%-3.1%20.5%17.8%
3 Year-25.8%-32.9%23.0%10.3%42.3%32.9%
5 Year22.9%3.7%68.2%40.3%84.2%63.4%

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?

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVA ($34.97) is trading below our estimate of fair value ($35.17)

Significantly Below Fair Value: AVA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVA's PE Ratio (19.2x) is in line with the US Integrated Utilities industry average.

PE vs Market: AVA's PE Ratio (19.2x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: AVA is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: AVA is good value based on its PB Ratio (1.2x) compared to the US Integrated Utilities industry average (2x).


Next Steps

Future Growth

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

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVA's forecast earnings growth (7.8% per year) is above the savings rate (2.2%).

Earnings vs Market: AVA's earnings (7.8% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: AVA's earnings are forecast to grow, but not significantly.

Revenue vs Market: AVA's revenue (1.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AVA's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVA's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Avista performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVA has a large one-off gain of $21.7M impacting its June 30 2020 financial results.

Growing Profit Margin: AVA's current net profit margins (9.2%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: AVA's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: AVA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVA had negative earnings growth (-38.2%) over the past year, making it difficult to compare to the Integrated Utilities industry average (6.5%).


Return on Equity

High ROE: AVA's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Avista's financial position?


Financial Position Analysis

Short Term Liabilities: AVA's short term assets ($352.5M) do not cover its short term liabilities ($656.6M).

Long Term Liabilities: AVA's short term assets ($352.5M) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: AVA's debt to equity ratio (119.1%) is considered high.

Reducing Debt: AVA's debt to equity ratio has increased from 105.8% to 119.1% over the past 5 years.

Debt Coverage: AVA's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: AVA's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVA's dividend (4.63%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: AVA's dividend (4.63%) is in the top 25% of dividend payers in the US market (4.56%)


Stability and Growth of Payments

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: At its current payout ratio (87.2%), AVA's 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 (78.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Dennis Vermillion (58 yo)

1

Tenure

US$2,382,620

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's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD4.43M).

Compensation vs Earnings: Dennis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Vermillion
CEO, President & Director1yrUS$2.38m0.088%
$ 2.1m
Mark Thies
Executive VP12.08yrsUS$1.72m0.17%
$ 4.1m
Jason Thackston
Senior Vice President of Energy Resources & Environmental Compliance Officer7.83yrsUS$1.39m0.027%
$ 649.6k
Ryan Krasselt
VP, Controller & Principal Accounting Officer5yrsno data0.021%
$ 495.7k
James Kensok
VP, Chief Information Officer & Chief Security Officer13.75yrsno data0.015%
$ 345.8k
John Wilcox
Investor Relations Managerno datano datano data
Gregory Hesler
VP, General Counsel & Chief Compliance Officer0.75yrno data0.0026%
$ 61.7k
Bryan Cox
Vice President of Safety & Human Resourcesno datano data0.011%
$ 271.9k
David Meyer
VP and Chief Counsel for Regulatory & Government Affairs16.67yrsUS$519.93k0.0082%
$ 194.7k
Grant Forsyth
Chief Economist8.25yrsno datano data
Kevin Christie
Senior VP of External Affairs & Chief Customer Officer2.75yrsno data0.022%
$ 523.4k
Edward Schlect
VP & Chief Strategy Officer5.08yrsno data0.014%
$ 323.5k

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: AVA's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Vermillion
CEO, President & Director1yrUS$2.38m0.088%
$ 2.1m
Heidi Stanley
Independent Director14.42yrsUS$190.00k0.034%
$ 817.9k
Scott Morris
Non Executive Chairman12.75yrsUS$4.65m0.24%
$ 5.8m
R. Taylor
Independent Director35.42yrsUS$207.77k0.0092%
$ 219.2k
Kristianne Blake
Independent Lead Director3.42yrsUS$228.53k0.025%
$ 604.4k
Marc Racicot
Independent Director11.17yrsUS$184.00k0.033%
$ 785.2k
Donald Burke
Independent Director9.17yrsUS$206.50k0.030%
$ 709.9k
Rebecca Klein
Independent Director10.42yrsUS$199.88k0.017%
$ 412.3k
Janet Widmann
Independent Director6.17yrsUS$191.96k0.018%
$ 421.1k
Jeffry Philipps
Independent Director0.92yrUS$32.83k0.0041%
$ 97.6k
Scott Maw
Independent Director4.17yrsUS$183.00k0.022%
$ 533.2k

9.2yrs

Average Tenure

62yo

Average Age

Experienced Board: AVA's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

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$2.375b
  • Shares outstanding: 67.91m
  • Website: https://www.avistacorp.com

Number of Employees


Location

  • Avista Corporation
  • 1411 East Mission Avenue
  • Spokane
  • Washington
  • 99202-2600
  • 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 Analysis2020/10/26 05:43
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.