American States Water Company (AWR)
NYSE:AWR
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American States Water
(NYSE:AWR)
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Rating:59Neutral
Price Target:
$76.00
▲(4.77% Upside)
Action:ReiteratedDate:03/21/26
The score is primarily constrained by weak cash-flow quality (persistent negative free cash flow and a particularly concerning 2025 cash flow profile) and reduced transparency from inconsistent 2025 financial fields. Valuation is moderately supportive due to a reasonable utility P/E and a ~2.7% dividend yield, but technicals remain soft with the stock trading below key moving averages.
Positive Factors
Regulated utility business model
AWR's regulated water and electric franchises provide predictable, cost‑recovery revenue mechanisms and an allowed return on rate base. This structural regulatory framework supports steady earnings and capital recovery over multi‑year horizons, reducing business-cycle volatility for core utilities.
Negative Factors
Persistent negative free cash flow
Consistent negative free cash flow signals structural pressure from capex needs exceeding internal cash generation. Over time this elevates reliance on external financing or equity, raises refinancing risk, and can constrain funding for growth, dividends, or unexpected costs if not addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility business model
AWR's regulated water and electric franchises provide predictable, cost‑recovery revenue mechanisms and an allowed return on rate base. This structural regulatory framework supports steady earnings and capital recovery over multi‑year horizons, reducing business-cycle volatility for core utilities.
Read all positive factors
American States Water (AWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.94B
Dividend Yield2.64%
Average Volume (3M)271.81K
Price to Earnings (P/E)21.4
Beta (1Y)-0.02
Revenue Growth10.28%
EPS Growth13.56%
CountryUS
Employees517
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.74
Shares Outstanding39,082,470
10 Day Avg. Volume322,909
30 Day Avg. Volume271,805
Financial Highlights & Ratios
PEG Ratio3.40
Price to Book (P/B)2.67
Price to Sales (P/S)4.25
P/FCF Ratio-393.98
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue5.86
Enterprise Value/Gross Profit9.24
Enterprise Value/Ebitda15.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.48
Revenue Forecast (FY)$664.00M
American States Water Business Overview & Revenue Model
Company Description
American States Water Company, through its subsidiaries, provides water and electric services to residential, commercial, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Ser...
How the Company Makes Money
AWR makes money primarily through two models: regulated utility revenue and contracted service revenue. (1) Regulated utilities: Its water and electric subsidiaries earn revenue by delivering water/wastewater service and electric distribution serv...
American States Water Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue contributions from different business units, indicating which segments drive growth and profitability, and where the company might face challenges or opportunities.
Highlights revenue contributions from different business units, indicating which segments drive growth and profitability, and where the company might face challenges or opportunities.
Data provided by:
The Fly
The FlyAmerican States Water Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The earnings call highlighted robust earnings growth, increased revenue, successful contract awards for ASUS, and recognition for sustainability and company performance. However, the call also acknowledged challenges related to higher operating expenses and potential revenue volatility due to regulatory changes.Positive Updates
Increase in Earnings Per Share
Recorded earnings per share for the third quarter were $0.11 higher compared to the third quarter of last year, marking an 11.6% increase.
Negative Updates
Higher Operating Expenses
Consolidated operating expenses, excluding supply costs, increased by $10.3 million compared to 2024, due to higher ASUS construction expenses and increased overall operating costs.
Read all updates
Q3-2025 Updates
Positive
Negative
Increase in Earnings Per Share
Recorded earnings per share for the third quarter were $0.11 higher compared to the third quarter of last year, marking an 11.6% increase.
Read all positive updates
Company Guidance
During the American States Water Company's third-quarter 2025 conference call, key financial metrics were highlighted, demonstrating a robust performance. The company reported an 11.6% increase in earnings per share (EPS) compared to the same period last year, amounting to $0.11 per share higher, driven by new water and electric rates authorized by the California Public Utilities Commission and increased construction activities from its contracted services business, ASUS. Year-to-date earnings as of September 30 were $2.63 per share, marking an 8.7% rise from the previous year. The company is on track to invest $180 million to $210 million in infrastructure for its regulated utilities in 2025. ASUS was awarded $28.7 million in new capital upgrade construction projects and is expected to contribute $0.59 to $0.63 per share in 2025. Additionally, the company was recognized on Times America's Best Midsize Companies 2025 list and Barron's 100 Most Sustainable Companies for 2025, reflecting its commitment to sustainable growth and operational excellence.American States Water Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 658.07M | 595.46M | 595.70M | 491.53M | 498.85M |
| Gross Profit | 334.09M | 452.02M | 449.55M | 368.23M | 377.82M |
| EBITDA | 252.15M | 244.05M | 252.54M | 170.78M | 187.58M |
| Net Income | 130.44M | 119.27M | 124.92M | 78.40M | 94.35M |
Balance Sheet | |||||
| Total Assets | 2.72B | 2.50B | 2.25B | 2.03B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 18.82M | 26.66M | 14.07M | 6.00M | 4.96M |
| Total Debt | 942.78M | 938.24M | 917.88M | 734.43M | 629.02M |
| Total Liabilities | 1.67B | 1.58B | 1.47B | 1.32B | 1.22B |
| Stockholders Equity | 1.05B | 920.05M | 776.11M | 709.55M | 685.95M |
Cash Flow | |||||
| Free Cash Flow | -7.09M | -33.23M | -120.86M | -48.44M | -28.93M |
| Operating Cash Flow | 229.73M | 198.73M | 67.68M | 117.80M | 115.58M |
| Investing Cash Flow | -237.54M | -232.78M | -188.76M | -167.10M | -145.09M |
| Financing Cash Flow | -26.00K | 46.64M | 129.16M | 50.34M | -2.27M |
American States Water Technical Analysis
Positive
72.54
Price Trends
73.46
Positive
73.15
Positive
73.32
Positive
Market Momentum
0.13
Positive
55.95
Neutral
60.19
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 72.54 is below the 20-day moving average (MA) of 74.45, below the 50-day MA of 73.46, and below the 200-day MA of 73.32, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWR.
American States Water Risk Analysis
American States Water disclosed 48 risk factors in its most recent earnings report. American States Water reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Delays in obtaining approval of general rate cases could adversely impact our liquidity Q4, 2023
American States Water Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $333.62M | 14.28 | 9.26% | 3.87% | 5.80% | 12.33% | |
67 Neutral | $959.44M | 26.96 | 9.08% | 2.67% | 6.24% | 3.35% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | $2.94B | 21.42 | 13.10% | 2.64% | 10.28% | 13.56% | |
58 Neutral | $2.68B | 20.13 | 7.68% | 2.88% | -2.60% | -33.78% | |
58 Neutral | $436.78M | 22.20 | 8.49% | 2.68% | 3.63% | -5.82% | |
54 Neutral | $211.94M | ― | 3.58% | 3.56% | 7.06% | -38.94% |
* Utilities Sector Average
AWR
American States Water
75.10
-0.58
-0.76%
ARTNA
Artesian Resources
32.06
0.60
1.90%
CWT
California Water Service
45.01
-1.97
-4.20%
MSEX
Middlesex Water Company
51.80
-10.05
-16.25%
YORW
The York Water Company
30.23
-3.47
-10.29%
GWRS
Global Water Resources
7.37
-2.59
-25.99%
American States Water Corporate Events
Regulatory Filings and Compliance
American States Water Clarifies Recent Stock Transaction Terms
Neutral
Feb 20, 2026
American States Water Company disclosed in its February 27, 2024, Current Report on Form 8-K that a referenced transaction involving its common stock is not intended as an offer to sell or a solicitation to buy the securities. The filing clarifies...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.