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The York Water Company (YORW)
NASDAQ:YORW

The York Water Company (YORW) AI Stock Analysis

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The York Water Company

(NASDAQ:YORW)

Rating:58Neutral
Price Target:
$33.00
▲(3.48%Upside)
The York Water Company has strong financial performance with robust profitability and revenue growth, though cash flow volatility and leverage are concerns. Technical analysis highlights bearish market sentiment, which is a risk factor. Valuation metrics are reasonable, offering a balanced investment profile. Continued vigilance on financial stability and market trends will be key.

The York Water Company (YORW) vs. SPDR S&P 500 ETF (SPY)

The York Water Company Business Overview & Revenue Model

Company DescriptionThe York Water Company impounds, purifies, and distributes drinking water. It owns and operates three wastewater collection systems; five wastewater collection and treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which hold approximately 2.2 billion gallons of water. The company also operates a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns nine groundwater wells that supply water to customers in the Adams County. It serves customers in the fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries in 51 municipalities within three counties in south-central Pennsylvania. The York Water Company was incorporated in 1816 and is based in York, Pennsylvania.
How the Company Makes MoneyThe York Water Company generates revenue primarily through the sale of water to its customer base, which includes residential, commercial, and industrial users. The company's revenue model is primarily based on metered water sales, where customers are billed based on their water consumption. Additionally, York Water Company may receive income from fees associated with new customer connections, service line installations, and fire protection services. The company also invests in infrastructure improvements and expansions to increase its service capacity and efficiency, which can lead to increased revenues over time. Regulatory frameworks and rate approvals by state utility commissions significantly influence the company's pricing and revenue structure.

The York Water Company Financial Statement Overview

Summary
The York Water Company demonstrates a mixed financial profile. While operational margins are positive and cash flow management has improved, revenue instability and increasing leverage could be potential concerns. The company shows financial resilience in some areas, but careful management of debt and revenue growth is necessary to sustain long-term stability.
Income Statement
45
Neutral
The York Water Company has shown fluctuating revenue growth with a negative growth in the most recent year, indicating potential instability. The gross profit margin is negative due to zero reported revenue, which is concerning. However, the company maintains a positive net profit margin, showing some ability to manage costs effectively. The EBIT and EBITDA margins remain positive, highlighting operational efficiency despite revenue challenges.
Balance Sheet
55
Neutral
The balance sheet reveals a solid equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio has increased, which might pose a risk if the trend continues. Return on Equity is positive, suggesting the company is generating returns on its equity base.
Cash Flow
60
Neutral
Despite challenges, The York Water Company has maintained a positive operating cash flow, which is a strength. The free cash flow has improved significantly from negative values in previous years, reflecting better cash management. The operating cash flow to net income ratio is healthy, indicating good cash conversion efficiency.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
74.96M71.03M60.06M55.12M53.85M
Gross Profit
55.29M53.67M45.93M43.30M43.07M
EBIT
28.04M29.53M24.48M23.40M24.43M
EBITDA
43.54M43.83M33.35M31.04M31.25M
Net Income Common Stockholders
20.32M23.76M19.58M16.98M16.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.00K1.00K1.00K1.00K2.00K
Total Assets
633.47M588.21M510.60M458.85M406.96M
Total Debt
205.56M180.01M139.47M146.37M123.57M
Net Debt
205.56M180.01M139.46M146.37M123.57M
Total Liabilities
402.28M367.03M303.41M306.23M263.70M
Stockholders Equity
231.19M221.18M207.18M152.62M143.25M
Cash FlowFree Cash Flow
30.56M-32.73M-31.90M-23.44M-13.06M
Operating Cash Flow
30.56M31.91M22.02M22.96M20.23M
Investing Cash Flow
-49.01M-65.27M-53.92M-46.40M-32.63M
Financing Cash Flow
18.45M33.36M31.90M18.44M17.39M

The York Water Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price31.89
Price Trends
50DMA
33.81
Negative
100DMA
33.14
Negative
200DMA
34.37
Negative
Market Momentum
MACD
-0.50
Positive
RSI
38.76
Neutral
STOCH
15.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YORW, the sentiment is Negative. The current price of 31.89 is below the 20-day moving average (MA) of 32.52, below the 50-day MA of 33.81, and below the 200-day MA of 34.37, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 15.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YORW.

The York Water Company Risk Analysis

The York Water Company disclosed 24 risk factors in its most recent earnings report. The York Water Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

The York Water Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.00B23.389.80%2.40%16.02%18.29%
HTHTO
72
Outperform
$1.75B17.207.49%3.20%12.34%11.78%
71
Outperform
$341.94M15.919.04%3.64%8.31%21.97%
AWAWR
65
Neutral
$2.95B23.6413.95%2.43%6.79%5.96%
64
Neutral
$8.54B10.304.24%4.37%4.14%-13.04%
CWCWT
63
Neutral
$2.72B20.038.67%2.54%3.83%-8.75%
58
Neutral
$459.22M23.328.63%2.70%3.45%-19.90%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YORW
The York Water Company
31.89
-3.64
-10.24%
AWR
American States Water
76.67
7.39
10.67%
ARTNA
Artesian Resources
33.58
-0.11
-0.33%
CWT
California Water Service
46.14
-0.68
-1.45%
MSEX
Middlesex Water Company
56.29
5.59
11.03%
HTO
H2O America
52.57
1.58
3.10%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.