NYSE:AWR

Stock Analysis Report

American States Water

Executive Summary

American States Water Company, through its subsidiaries, provides water and electric services to residential, industrial, and other customers in the United States.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has American States Water's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

AWR

1.1%

US Water Utilities

0.5%

US Market


1 Year Return

51.3%

AWR

30.0%

US Water Utilities

6.8%

US Market

Return vs Industry: AWR exceeded the US Water Utilities industry which returned 30% over the past year.

Return vs Market: AWR exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

AWRIndustryMarket
7 Day1.3%1.1%0.5%
30 Day4.5%1.9%-0.8%
90 Day23.8%9.6%-0.9%
1 Year53.6%51.3%32.5%30.0%9.2%6.8%
3 Year162.9%148.5%77.4%66.9%45.6%36.2%
5 Year208.0%178.5%148.4%122.5%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is American States Water undervalued compared to its fair value and its price relative to the market?

45.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AWR ($94.2) is trading above our estimate of fair value ($25.72)

Significantly Below Fair Value: AWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AWR is poor value based on its PE Ratio (45.6x) compared to the Water Utilities industry average (39.8x).

PE vs Market: AWR is poor value based on its PE Ratio (45.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AWR is poor value based on its PEG Ratio (14.6x)


Price to Book Ratio

PB vs Industry: AWR is overvalued based on its PB Ratio (6x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

How is American States Water forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWR's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: AWR's earnings (3.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: AWR's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AWR's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AWR's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has American States Water performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AWR's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: AWR's earnings growth over the past year (25.3%) exceeds its 5-year average (3% per year).

Earnings vs Industry: AWR earnings growth over the past year (25.3%) exceeded the Water Utilities industry 2.3%.


Return on Equity

High ROE: AWR's Return on Equity (13.2%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is American States Water's financial position?


Financial Position Analysis

Short Term Liabilities: AWR's short term assets ($122.0M) exceeds its short term liabilities ($106.3M)

Long Term Liabilities: AWR's short term assets (122.0M) do not cover its long term liabilities (882.2M)


Debt to Equity History and Analysis

Debt Level: AWR's debt to equity ratio (80.7%) is considered high

Reducing Debt: AWR's debt to equity ratio has increased from 67% to 80.7% over the past 5 years.

Debt Coverage: AWR's debt is well covered by operating cash flow (24.9%).

Interest Coverage: AWR's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

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

Debt Coverage by Assets: AWR's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is American States Water's current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AWR's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AWR's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.2%), AWR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AWR's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

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

8.4yrs

Average board tenure


CEO

Robert Sprowls (61yo)

10.8yrs

Tenure

US$3,006,037

Compensation

Mr. Robert J. Sprowls, also known as Bob, serves as Chief Executive Officer and President at American States Utility Services Inc. Mr. Sprowls has been the Chief Executive Officer and President of American ...


CEO Compensation Analysis

Compensation vs. Market: Robert's total compensation ($USD3.01M) is about average for companies of similar size in the US market ($USD5.11M).

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


Board Age and Tenure

8.4yrs

Average Tenure

68yo

Average Age

Experienced Board: AWR's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$100,62110 Oct 19
Patrick Scanlon
EntityIndividual
Shares1,105
Max PriceUS$91.06
SellUS$44,86504 Oct 19
Lloyd Ross
EntityIndividual
Shares500
Max PriceUS$89.73
SellUS$35,85601 Oct 19
Bryan Switzer
EntityIndividual
Shares400
Max PriceUS$89.64
SellUS$37,01204 Sep 19
Bryan Switzer
EntityIndividual
Shares400
Max PriceUS$92.53
SellUS$46,31004 Sep 19
Lloyd Ross
EntityIndividual
Shares500
Max PriceUS$92.92
SellUS$100,25729 Aug 19
Patrick Scanlon
EntityIndividual
Shares1,105
Max PriceUS$90.73
SellUS$210,37509 Aug 19
James McNulty
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$84.15
SellUS$171,24308 Aug 19
Lloyd Ross
EntityIndividual
Shares2,150
Max PriceUS$80.29
SellUS$30,98801 Aug 19
Bryan Switzer
EntityIndividual
Shares400
Max PriceUS$77.47
SellUS$537,46403 Jul 19
Lloyd Ross
EntityIndividual
Shares7,150
Max PriceUS$75.63
SellUS$30,09202 Jul 19
Bryan Switzer
EntityIndividual
Shares400
Max PriceUS$75.23
SellUS$36,49506 Jun 19
Lloyd Ross
EntityIndividual
Shares500
Max PriceUS$72.99
SellUS$21,94804 Jun 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$73.16
SellUS$173,52128 May 19
Sarah Anderson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,326
Max PriceUS$74.62
SellUS$36,46015 May 19
Anne Holloway
EntityIndividual
Role
Chairman of the Board
Shares500
Max PriceUS$72.92
SellUS$151,00215 May 19
James Cotton
EntityIndividual
Shares2,100
Max PriceUS$71.95
SellUS$6,27614 May 19
Robert Sprowls
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares87
Max PriceUS$72.14
SellUS$188,51314 May 19
Robert Sprowls
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,585
Max PriceUS$73.14
SellUS$14,41309 May 19
Robert Sprowls
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares200
Max PriceUS$72.09
SellUS$21,30901 May 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$71.03
SellUS$276,57330 Apr 19
Robert Sprowls
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,838
Max PriceUS$72.29
SellUS$34,70008 Apr 19
Lloyd Ross
EntityIndividual
Shares500
Max PriceUS$69.40
SellUS$21,45002 Apr 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$71.50
SellUS$887,31225 Mar 19
Robert Sprowls
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares12,402
Max PriceUS$72.16
SellUS$47,79206 Mar 19
Bryan Switzer
EntityIndividual
Shares673
Max PriceUS$71.02
SellUS$24,65306 Mar 19
Paul Rowley
EntityIndividual
Shares346
Max PriceUS$71.25
SellUS$214,65002 Mar 19
Diana Bontá
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,049
Max PriceUS$70.40
SellUS$21,31502 Mar 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$71.05
SellUS$106,79001 Mar 19
James Anderson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceUS$71.20
SellUS$41,62901 Mar 19
James Cotton
EntityIndividual
Shares585
Max PriceUS$71.16
SellUS$20,28905 Feb 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$67.63
SellUS$32,44009 Jan 19
Lloyd Ross
EntityIndividual
Shares500
Max PriceUS$64.88
SellUS$19,98303 Jan 19
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$66.61
SellUS$20,17804 Dec 18
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$67.26
SellUS$33,52021 Nov 18
Anne Holloway
EntityIndividual
Role
Chairman of the Board
Shares500
Max PriceUS$67.04
SellUS$18,43201 Nov 18
Bryan Switzer
EntityIndividual
Shares300
Max PriceUS$61.44

Ownership Breakdown


Management Team

  • Robert Sprowls (61yo)

    CEO, President & Director

    • Tenure: 10.8yrs
    • Compensation: US$3.01m
  • Eva Tang (63yo)

    Senior VP of Finance

    • Tenure: 10.9yrs
    • Compensation: US$788.97k
  • Gladys Farrow (54yo)

    Assistant Secretary

    • Tenure: 0yrs

Board Members

  • Jim McNulty (76yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$155.11k
  • Anne Holloway (67yo)

    • Tenure: 0.8yrs
    • Compensation: US$165.52k
  • James Anderson (75yo)

    Director

    • Tenure: 22.8yrs
    • Compensation: US$160.61k
  • Robert Sprowls (61yo)

    CEO, President & Director

    • Tenure: 10.8yrs
    • Compensation: US$3.01m
  • John Fielder (74yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$149.77k
  • Janice Wilkins (74yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$150.52k
  • Diana Bontá (68yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$151.61k
  • Mary Hopkins (54yo)

    Director

    • Tenure: 0.4yrs
  • Sally Anderson (68yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$157.77k

Company Information

American States Water Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American States Water Company
  • Ticker: AWR
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$3.470b
  • Shares outstanding: 36.83m
  • Website: https://www.aswater.com

Number of Employees


Location

  • American States Water Company
  • 630 East Foothill Boulevard
  • San Dimas
  • California
  • 91773
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWRNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
FDKDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969
AWR *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1969

Biography

American States Water Company, through its subsidiaries, provides water and electric services to residential, industrial, and other customers in the United States. It operates through three segments: Water ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:31
End of Day Share Price2019/10/18 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.