Avista (AVA) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 4.67%
• Average Volume (3M): 549.28K
• Price to Earnings (P/E): 17.5
• Beta (1Y): -0.08
• Revenue Growth: 2.14%
• EPS Growth: -6.51%
• Country: US
• Employees: 1,920
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.36
• Shares Outstanding: 81,371,740
• 10 Day Avg. Volume: 734,456
• 30 Day Avg. Volume: 549,279
• PEG Ratio: 8.97
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 2.88K
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 10.04
• 1Y Price Target: $39.25
• Price Target Upside: -5.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.49
• Revenue Forecast (FY): $1.98B

• Rating: 68 Neutral
• Price Target: $41.00 ▼(-1.58% Downside)

Avista's overall score is driven by strong financial performance and a solid valuation, despite challenges in cash flow management and clean technology investments. Technical indicators suggest a neutral market sentiment, while earnings call insights reflect both strategic successes and short-term earnings pressures.

Positive Factors

Regulatory Success

The approval of settlement agreements in Idaho strengthens Avista's regulatory standing, ensuring stable revenue streams and supporting infrastructure investments, which are crucial for long-term operational stability and growth.

Revenue Growth

Strong revenue growth indicates robust demand for Avista's services, enhancing its market position and providing a solid foundation for future profitability and expansion in the utility sector.

Positive Load Growth Potential

Significant potential demand from large load customers suggests future revenue opportunities, positioning Avista to capitalize on increased energy needs and expand its customer base.

Negative Factors

Negative Free Cash Flow

The significant negative free cash flow growth highlights cash management challenges, which could impact Avista's ability to fund operations and investments, potentially straining financial health.

Decline in Earnings

The decline in earnings per share indicates pressure on profitability, which may affect investor confidence and limit financial flexibility for future growth initiatives.

Impact of Clean Technology Investment Valuations

Valuation losses in clean technology investments reflect vulnerability to policy changes, potentially affecting Avista's strategic focus on sustainable energy and its financial performance.

Avista Business Overview & Revenue Model

Company Description

Avista Corp (AVA) is a diversified utility company based in the Pacific Northwest, primarily engaged in the generation, transmission, and distribution of electricity and natural gas. It serves approximately 400,000 electric customers and 350,000 natural gas customers across Washington, Idaho, and Oregon. Avista operates through two main segments: Electric Operations and Natural Gas Operations, providing essential energy services while also engaging in renewable energy initiatives and energy efficiency programs.

How the Company Makes Money

Avista generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company charges customers based on a regulated rate structure approved by state utility commissions, which allows it to recover its operating costs and earn a return on investment. Key revenue streams include electricity sales, natural gas sales, and various ancillary services. Additionally, Avista participates in energy efficiency programs and renewable energy projects, which can provide additional income through incentives and grants. The company may also benefit from partnerships with local governments and other entities focused on sustainability and clean energy initiatives, further enhancing its revenue potential.

Avista Financial Statement Overview

Summary

Avista shows strong revenue growth and stable profitability, supported by efficient operations. However, high leverage and negative free cash flow indicate potential risks and cash management challenges.

Income Statement

Avista's income statement shows strong revenue growth with a TTM revenue growth rate of 45.9%, indicating robust expansion. The gross profit margin is healthy at 61.8%, and the net profit margin is stable at 9.1%. The EBIT and EBITDA margins are also solid, reflecting efficient operations. However, the net profit margin has slightly decreased from the previous year, suggesting some pressure on profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.20, indicating a balanced approach to leveraging. Return on equity is consistent at 6.9%, showing steady returns for shareholders. The equity ratio of 32.8% suggests a stable capital structure, though there is room for improvement in reducing debt levels to enhance financial stability.

Cash Flow

Cash flow analysis highlights challenges with negative free cash flow growth at -921.7% TTM, indicating cash management issues. The operating cash flow to net income ratio is 0.66, showing reasonable cash generation from operations. However, the negative free cash flow to net income ratio suggests potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.94B	1.75B	1.71B	1.44B	1.32B
Gross Profit	1.21B	1.14B	1.05B	974.35M	941.81M	923.38M
EBITDA	619.05M	602.00M	542.63M	446.42M	459.02M	450.49M
Net Income	178.65M	180.00M	171.18M	155.18M	147.33M	129.49M
Balance Sheet
Total Assets	8.06B	7.94B	7.70B	7.42B	6.85B	6.40B
Cash, Cash Equivalents and Short-Term Investments	9.00M	30.00M	35.00M	13.43M	22.17M	14.20M
Total Debt	3.17B	3.12B	3.03B	2.92B	2.60B	2.39B
Total Liabilities	5.42B	5.35B	5.22B	5.08B	4.70B	4.37B
Stockholders Equity	2.65B	2.59B	2.48B	2.33B	2.15B	2.03B
Cash Flow
Free Cash Flow	-86.79M	1.00M	-51.56M	-327.79M	-172.60M	-73.30M
Operating Cash Flow	441.00M	534.00M	447.08M	124.21M	267.34M	331.00M
Investing Cash Flow	-532.87M	-539.00M	-510.39M	-460.24M	-444.92M	-410.74M
Financing Cash Flow	86.22M	0.00	84.89M	327.29M	185.55M	84.04M

Avista Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVA, the sentiment is Positive. The current price of 41.66 is above the 20-day moving average (MA) of 39.33, above the 50-day MA of 37.83, and above the 200-day MA of 37.83, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 76.11 is Negative, neither overbought nor oversold. The STOCH value of 95.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVA.

Avista Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWE	78 Outperform	$4.06B	18.73	7.62%	4.38%	4.90%	-4.42%
BKH	76 Outperform	$5.37B	17.95	7.90%	4.20%	7.03%	6.64%
OTTR	72 Outperform	$3.60B	12.97	16.10%	2.49%	-3.18%	-8.62%
AVA	68 Neutral	$3.35B	17.48	7.31%	4.67%	2.14%	-6.51%
ALE	68 Neutral	$3.91B	23.60	5.83%	4.29%	-4.30%	-8.49%
MGEE	67 Neutral	$3.04B	22.59	10.80%	2.17%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Avista Corporate Events

Avista Corp. Reports Q2 2025 Earnings, Confirms Guidance

Avista Corp. is an energy company that specializes in the production, transmission, and distribution of energy, primarily serving customers in eastern Washington, northern Idaho, and parts of Oregon. The company also operates in Alaska through its subsidiary AEL&P.

Avista’s Earnings Call: Mixed Sentiments and Future Plans

Avista Corporation’s recent earnings call painted a mixed picture for investors. While the company reaffirmed its earnings guidance and highlighted positive regulatory outcomes and a strong liquidity position, challenges such as a decline in second quarter earnings and valuation losses in clean technology investments tempered the overall sentiment.

Avista Issues $120 Million in Mortgage Bonds

On July 23, 2025, Avista Corporation issued $120 million of 6.18% first mortgage bonds due in 2055 in a private placement with institutional investors. The proceeds will be used to repay borrowings for utility facility construction, and the bonds are secured by a lien on substantially all of Avista’s property.

The most recent analyst rating on (AVA) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Avista stock, see the AVA Stock Forecast page.