Avista (AVA) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 4.98%
• Average Volume (3M): 674.98K
• Price to Earnings (P/E): 16.8
• Beta (1Y): -0.09
• 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: 706,010
• 30 Day Avg. Volume: 674,977
• 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: 1.94
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: $39.25
• Price Target Upside: -0.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.49
• Revenue Forecast (FY): $1.98B

• Rating: 77 Outperform
• Price Target: $46.00 ▲(16.96% Upside)

Avista's overall stock score reflects strong earnings growth and strategic initiatives, which are slightly offset by liquidity concerns due to declining free cash flow. The stock's technical indicators and valuation are favorable, supporting a positive outlook.

Positive Factors

Revenue Growth

Robust revenue growth indicates successful business expansion and increased demand for Avista's utility services, supporting long-term financial health.

Strategic Initiatives

Strategic initiatives enhance operational resilience and future growth potential, ensuring Avista remains competitive and can adapt to industry challenges.

Profitability

Strong profit margins reflect efficient operations and cost management, providing a solid foundation for sustainable profitability and shareholder value.

Negative Factors

Declining Free Cash Flow

Declining free cash flow raises concerns about liquidity and the ability to fund operations and investments without relying on external financing.

Valuation Losses

Losses in non-core businesses can strain overall financial performance, potentially diverting resources from core operations and growth initiatives.

Energy Recovery Mechanism Impact

Negative impacts from energy recovery mechanisms can affect earnings stability, posing challenges to maintaining consistent financial performance.

Avista Business Overview & Revenue Model

Company Description

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services to 17,400 customers in the city and borough of Juneau, Alaska. The company generates electricity through hydroelectric, thermal, and wind facilities. As of February 23, 2022, it provided electric service to 406,000 customers and natural gas to 372,000 customers. In addition, the company engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

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 profitability with efficient operations. However, the significant decline in free cash flow raises concerns about liquidity, which impacts the overall financial performance score.

Income Statement

Avista's income statement shows strong revenue growth with a TTM increase of 47.4%, indicating robust business expansion. The gross profit margin of 63.36% and net profit margin of 9.63% reflect solid profitability. EBIT and EBITDA margins are healthy at 17.96% and 32.55%, respectively, showcasing efficient operations. Overall, the income statement demonstrates a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.21, indicating moderate leverage. Return on equity stands at 7.19%, reflecting decent profitability relative to shareholder equity. The equity ratio of 32.41% suggests a balanced capital structure. While leverage is slightly high, the company maintains a stable financial position with adequate equity backing.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow, with a growth rate of -73.75% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.66, indicating moderate cash conversion efficiency. The negative free cash flow to net income ratio highlights potential liquidity challenges. While operating cash flow remains positive, the decline in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	1.94B	1.75B	1.71B	1.44B	1.32B
Gross Profit	1.24B	1.14B	1.05B	974.35M	941.81M	923.38M
EBITDA	639.14M	602.00M	542.63M	446.42M	459.02M	450.49M
Net Income	189.16M	180.00M	171.18M	155.18M	147.33M	129.49M
Balance Sheet
Total Assets	8.16B	7.94B	7.70B	7.42B	6.85B	6.40B
Cash, Cash Equivalents and Short-Term Investments	44.00M	30.00M	35.00M	13.43M	22.17M	14.20M
Total Debt	3.19B	3.12B	3.03B	2.92B	2.60B	2.39B
Total Liabilities	5.52B	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	-22.78M	1.00M	-51.56M	-327.79M	-172.60M	-73.30M
Operating Cash Flow	483.79M	534.00M	447.08M	124.21M	267.34M	331.00M
Investing Cash Flow	-501.99M	-539.00M	-510.39M	-460.24M	-444.92M	-410.74M
Financing Cash Flow	53.07M	0.00	84.89M	327.29M	185.55M	84.04M

Avista Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVA, the sentiment is Neutral. The current price of 39.33 is below the 20-day moving average (MA) of 40.54, above the 50-day MA of 38.69, and above the 200-day MA of 37.77, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVA.

Avista Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWE	78 Outperform	$4.12B	19.00	7.62%	3.94%	4.90%	-4.42%
AVA	77 Outperform	$3.21B	16.76	7.31%	4.98%	2.14%	-6.51%
BKH	76 Outperform	$5.42B	18.11	7.90%	3.80%	7.03%	6.64%
OTTR	72 Outperform	$3.41B	12.28	16.10%	2.54%	-3.18%	-8.62%
ALE	68 Neutral	$3.93B	23.68	5.83%	4.28%	-4.30%	-8.49%
MGEE	67 Neutral	$2.90B	21.55	10.80%	2.31%	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.