NYSE:WTR

Stock Analysis Report

Executive Summary

Aqua America, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States.

Snowflake

Fundamentals

Average dividend payer with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

WTR

1.7%

US Water Utilities

0.07%

US Market


1 Year Return

32.9%

WTR

32.4%

US Water Utilities

8.9%

US Market

Return vs Industry: WTR exceeded the US Water Utilities industry which returned 32.4% over the past year.

Return vs Market: WTR exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

WTRIndustryMarket
7 Day3.4%1.7%0.07%
30 Day4.7%2.1%-0.3%
90 Day13.9%10.0%-1.6%
1 Year36.1%32.9%35.0%32.4%11.3%8.9%
3 Year67.3%55.6%76.2%65.8%46.3%36.8%
5 Year103.5%80.2%144.4%119.0%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

59.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTR ($46.52) is trading above our estimate of fair value ($20.51)

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


Price To Earnings Ratio

PE vs Industry: WTR is poor value based on its PE Ratio (59.9x) compared to the Water Utilities industry average (40x).

PE vs Market: WTR is poor value based on its PE Ratio (59.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WTR is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: WTR is good value based on its PB Ratio (2.6x) compared to the US Water Utilities industry average (2.7x).


Next Steps

Future Growth

How is Aqua America forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTR's forecast earnings growth (20% per year) is above the savings rate (2.7%).

Earnings vs Market: WTR's earnings (20% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: WTR's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WTR's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTR's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Aqua America performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WTR's earnings have declined by -1.2% per year over the past 5 years.

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

Earnings vs Industry: WTR had negative earnings growth (-40.8%) over the past year, making it difficult to compare to the Water Utilities industry average (2.3%).


Return on Equity

High ROE: WTR's Return on Equity (3.8%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Aqua America's financial position?


Financial Position Analysis

Short Term Liabilities: WTR's short term assets ($2.1B) exceeds its short term liabilities ($398.9M)

Long Term Liabilities: WTR's short term assets (2.1B) do not cover its long term liabilities (5.0B)


Debt to Equity History and Analysis

Debt Level: WTR's debt to equity ratio (78.4%) is considered high

Reducing Debt: WTR's debt to equity ratio has reduced from 103.4% to 78.4% over the past 5 years.

Debt Coverage: WTR's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: WTR's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: WTR's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WTR's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WTR's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.7%), WTR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTR's dividends in 3 years are forecast to be covered by earnings (63.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Chris Franklin (54yo)

4.3yrs

Tenure

US$3,552,705

Compensation

Mr. Christopher H. Franklin, also known as Chris, has been a Director at National Association of Water Companies since March 2018. Mr. Franklin has been the Chief Executive Officer and President at Aqua Am ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD3.55M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: WTR's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: WTR's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$49,96810 Sep 19
Daniel Hilferty
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,152
Max PriceUS$43.38
BuyUS$49,98315 Aug 19
Daniel Hilferty
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,153
Max PriceUS$43.35
BuyUS$100,14419 Nov 18
Richard Fox
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares3,095.63
Max PriceUS$32.35
BuyUS$100,52819 Nov 18
Daniel Schuller
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,050
Max PriceUS$32.96
BuyUS$835,34219 Nov 18
Christopher Franklin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares25,421.23
Max PriceUS$32.86
BuyUS$99,92916 Nov 18
Daniel Hilferty
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,070
Max PriceUS$32.55
BuyUS$329,50016 Nov 18
Lee Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$32.95

Ownership Breakdown


Management Team

  • Robert Rubin (56yo)

    Senior VP

    • Tenure: 15.6yrs
  • Chris Franklin (54yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$3.55m
  • Christopher Luning (51yo)

    Executive VP

    • Tenure: 7.4yrs
    • Compensation: US$878.96k
  • Brian Dingerdissen

    Chief of Staff

    • Tenure: 4.3yrs
  • Rick Fox (57yo)

    Executive VP & COO

    • Tenure: 4.3yrs
    • Compensation: US$1.27m
  • Susan Haindl

    Senior VP & Chief Administrative Officer

    • Tenure: 3.6yrs
  • Dan Schuller (49yo)

    Executive VP & CFO

    • Tenure: 1yrs
    • Compensation: US$1.20m
  • Whitney Kellett

    Chief Information Officer

    • Tenure: 3.5yrs
  • Matthew Rhodes (41yo)

    Executive VP of Strategy & Corporate Development

    • Tenure: 1.3yrs
    • Compensation: US$1.32m
  • Christina Kelly

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.4yrs

Board Members

  • Nick DeBenedictis (74yo)

    Chairman Emeritus

    • Tenure: 1.8yrs
    • Compensation: US$182.52k
  • Lee Stewart (70yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$39.92k
  • Chris Womack (61yo)

    Independent Director

    • Tenure: 0.4yrs
  • Dan Hilferty (62yo)

    Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$183.77k
  • Ellen Ruff (70yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$169.39k
  • Chris Franklin (54yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$3.55m
  • Beth Amato (62yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$39.99k
  • Francis Idehen

    Director

    • Tenure: 0.3yrs

Company Information

Aqua America, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aqua America, Inc.
  • Ticker: WTR
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$10.038b
  • Shares outstanding: 215.78m
  • Website: https://www.aquaamerica.com

Number of Employees


Location

  • Aqua America, Inc.
  • 762 West Lancaster Avenue
  • Bryn Mawr
  • Pennsylvania
  • 19010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
A2ADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
WTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969

Biography

Aqua America, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States. It offers water services through operating and maintenance contrac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:49
End of Day Share Price2019/10/22 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.