American States Water (AWR) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: 2.58%
• Average Volume (3M): 303.64K
• Price to Earnings (P/E): 22.3
• Beta (1Y): -0.01
• Revenue Growth: 10.28%
• EPS Growth: 13.56%
• Country: US
• Employees: 517
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 1.06
• Shares Outstanding: 38,714,424
• 10 Day Avg. Volume: 396,881
• 30 Day Avg. Volume: 303,642
• PEG Ratio: -4.11
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 4.89
• P/FCF Ratio: -87.63
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 8.36
• Enterprise Value/Ebitda: 14.44
• 1Y Price Target: $72.00
• Price Target Upside: -4.09% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.32
• Revenue Forecast (FY): $652.74M

• Rating: 73 Outperform
• Price Target: $84.00 ▲(11.90% Upside)

American States Water's strong earnings growth and profitability are the most significant factors driving the score. The company's solid financial health and positive earnings call sentiment contribute positively. However, challenges in cash flow management, high valuation, and potential revenue volatility due to regulatory changes are notable risks.

Positive Factors

Earnings Growth

The significant increase in earnings per share reflects strong operational performance and effective cost management, enhancing shareholder value and supporting future investments.

Infrastructure Investment

Substantial infrastructure investments indicate a commitment to long-term growth and service reliability, potentially leading to future rate base increases and revenue growth.

Sustainability Recognition

Recognition for sustainability and operational excellence enhances the company's reputation, potentially attracting environmentally conscious investors and customers.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential issues in covering capital expenditures, which could limit the company's ability to fund growth initiatives and service debt.

Higher Operating Expenses

Rising operating expenses may pressure margins and reduce profitability, necessitating cost control measures to maintain financial health.

Revenue Volatility Risk

Potential revenue volatility from regulatory changes could impact financial predictability, affecting long-term planning and investor confidence.

American States Water Business Overview & Revenue Model

Company Description

American States Water Company (AWR) is a public utility holding company primarily engaged in the business of water and electric services. Founded in 1929 and headquartered in San Dimas, California, AWR operates through its subsidiaries, including Golden State Water Company, which provides water utility services to residential and commercial customers in several states. The company also offers electric service through its Bear Valley Electric Service subsidiary. AWR is focused on delivering reliable utility services while promoting sustainable practices and investing in infrastructure improvements.

How the Company Makes Money

American States Water generates revenue primarily through the provision of water and electric utility services. Its core revenue stream comes from water sales to residential, commercial, and industrial customers, which is regulated by state public utility commissions. The company sets rates based on the cost of service, including investments in infrastructure, maintenance, and operational expenses. Additionally, AWR earns revenue from electric utility services, where it charges customers based on electricity consumption. The company also benefits from various partnerships and regulatory frameworks that allow for stable revenue generation, including infrastructure projects that may receive governmental support or funding. Furthermore, AWR may engage in capital investments that lead to rate base increases, further enhancing its revenue potential.

American States Water Financial Statement Overview

Summary

American States Water demonstrates strong profitability with consistent revenue growth and efficient equity utilization. However, challenges in cash flow management, particularly with negative free cash flow, could impact future investments and debt servicing. The balance sheet remains solid, but the reliance on debt financing warrants attention.

Income Statement

American States Water shows a solid financial performance with a consistent revenue growth rate of 3.4% in the TTM period. The company maintains strong profitability with a gross profit margin of 70.1% and a net profit margin of 20.4%. The EBIT and EBITDA margins are also robust at 32.6% and 40.0%, respectively. However, the slight decrease in gross profit margin compared to the previous year indicates some cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.91, indicating moderate leverage. The return on equity is healthy at 13.5%, showing efficient use of equity capital. However, the equity ratio of 38.0% suggests a relatively high reliance on debt financing, which could pose risks in a rising interest rate environment.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which is negative, indicating potential issues in covering capital expenditures. The operating cash flow to net income ratio is 0.33, suggesting that cash generation from operations is lower than net income. The significant negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	636.89M	595.46M	595.70M	491.53M	498.85M	488.24M
Gross Profit	446.55M	452.02M	449.55M	368.23M	377.82M	368.84M
EBITDA	258.54M	244.05M	252.54M	170.78M	187.58M	174.36M
Net Income	130.14M	119.27M	124.92M	78.40M	94.35M	86.42M
Balance Sheet
Total Assets	2.66B	2.50B	2.25B	2.03B	1.90B	1.79B
Cash, Cash Equivalents and Short-Term Investments	26.07M	26.66M	14.07M	6.00M	4.96M	36.74M
Total Debt	921.78M	938.24M	917.88M	734.43M	629.02M	586.55M
Total Liabilities	1.65B	1.58B	1.47B	1.32B	1.22B	1.15B
Stockholders Equity	1.01B	920.05M	776.11M	709.55M	685.95M	641.67M
Cash Flow
Free Cash Flow	-167.09M	-33.23M	-120.86M	-48.44M	-28.93M	-8.25M
Operating Cash Flow	64.52M	198.73M	67.68M	117.80M	115.58M	122.17M
Investing Cash Flow	-233.05M	-232.78M	-188.76M	-167.10M	-145.09M	-131.61M
Financing Cash Flow	5.60M	46.64M	129.16M	50.34M	-2.27M	44.84M

American States Water Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWR, the sentiment is Positive. The current price of 75.07 is above the 20-day moving average (MA) of 74.81, above the 50-day MA of 73.49, and below the 200-day MA of 75.42, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWR.

American States Water Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWR	73 Outperform	$2.91B	22.28	13.73%	2.58%	10.28%	13.56%
WTRG	72 Outperform	$11.06B	16.21	10.29%	3.34%	21.35%	20.96%
YORW	69 Neutral	$461.33M	22.96	8.58%	2.74%	3.63%	-5.82%
HTO	67 Neutral	$1.68B	14.94	7.65%	3.54%	11.39%	13.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWT	66 Neutral	$2.71B	19.88	8.19%	2.71%	-2.60%	-33.78%
MSEX	55 Neutral	$965.49M	22.10	9.27%	2.25%	6.24%	3.35%

American States Water Corporate Events

American States Water Co. Reports Strong Q3 Earnings

The recent earnings call of American States Water Company was marked by a generally positive sentiment, underscoring robust earnings growth and increased revenue. The company celebrated successful contract awards for ASUS and received recognition for its sustainability and performance. However, there were acknowledgments of challenges, particularly concerning higher operating expenses and potential revenue volatility due to regulatory changes.

American States Water Company Reports Strong Q3 2025 Results

American States Water Company, a leading utility company, provides water and electric services in California and operates water and wastewater systems on military bases across the United States through its subsidiaries. In its latest earnings report for the third quarter of 2025, the company reported strong financial performance with significant increases in operating revenues and net income compared to the previous year. The company’s water and electric segments saw substantial revenue growth, driven by higher customer demand and strategic investments in infrastructure. Additionally, the contracted services segment benefited from ongoing projects and economic price adjustments on military base contracts. Looking ahead, American States Water Company remains focused on expanding its customer base and enhancing service delivery while navigating regulatory challenges and environmental considerations.

American States Water’s Positive Earnings Call Highlights

The recent earnings call for American States Water Company painted a generally positive picture, highlighting significant achievements such as dividend increases and revenue growth driven by new rate approvals. Despite challenges like the decline in ASUS earnings and potential revenue volatility due to regulatory changes, the company’s robust credit ratings and planned infrastructure investments underscore a solid financial position.