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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
â–²(1.10%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 solid financial health with strong profitability and revenue growth. The income statement is robust with high margins, but the balance sheet shows moderate leverage, and cash flow management requires improvement. Overall, a healthy financial position with areas for enhancement.
Income Statement
78
Positive
The York Water Company shows a strong financial performance with consistent revenue growth and profitability. Over the TTM, the company reported a Gross Profit Margin of 69.2% and a Net Profit Margin of 25.9%, reflecting efficient cost management. The Revenue Growth Rate is 11.9% from 2022 to 2023, indicating a positive upward trend. EBIT and EBITDA Margins are healthy at 37.1% and 54.3% respectively, underscoring operational efficiency.
Balance Sheet
65
Positive
The balance sheet indicates moderate leverage with a Debt-to-Equity Ratio of 0.91, suggesting a significant reliance on debt. However, the Return on Equity stands at 8.5%, showcasing decent profitability relative to equity. The Equity Ratio is 36.2%, indicating a balanced capital structure, though there's room for improvement in strengthening equity.
Cash Flow
54
Neutral
The cash flow statement reflects some challenges with negative Free Cash Flow in previous years, but a positive shift to $13.9M in the TTM. Operating Cash Flow to Net Income Ratio is 1.55, indicating strong cash generation relative to net income. Despite improvements, the Free Cash Flow Growth Rate has been volatile, necessitating careful monitoring of capital expenditures and cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
75.79M74.96M71.03M60.06M55.12M53.85M
Gross Profit
52.45M55.29M53.67M45.93M43.30M43.07M
EBIT
28.11M28.04M29.53M24.48M23.40M24.43M
EBITDA
41.15M43.79M43.83M33.35M31.04M31.25M
Net Income Common Stockholders
19.64M20.32M23.76M19.58M16.98M16.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.00K1.00K1.00K1.00K1.00K2.00K
Total Assets
641.75M646.85M588.21M510.60M458.85M406.96M
Total Debt
211.64M205.56M180.01M139.47M146.37M123.57M
Net Debt
211.64M205.56M180.01M139.46M146.37M123.57M
Total Liabilities
409.61M402.28M367.03M303.41M306.23M263.70M
Stockholders Equity
232.14M231.19M221.18M207.18M152.62M143.25M
Cash FlowFree Cash Flow
13.90M-18.45M-32.73M-31.90M-23.44M-13.06M
Operating Cash Flow
30.43M30.56M31.91M22.02M22.96M20.23M
Investing Cash Flow
-49.79M-49.01M-65.27M-53.92M-46.40M-32.63M
Financing Cash Flow
16.04M18.45M33.36M31.90M18.44M17.39M

The York Water Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price32.64
Price Trends
50DMA
33.70
Negative
100DMA
33.19
Negative
200DMA
34.29
Negative
Market Momentum
MACD
-0.36
Negative
RSI
47.80
Neutral
STOCH
61.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YORW, the sentiment is Neutral. The current price of 32.64 is above the 20-day moving average (MA) of 32.53, below the 50-day MA of 33.70, and below the 200-day MA of 34.29, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 61.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
75
Outperform
$352.78M16.469.04%3.59%8.31%21.97%
HTHTO
74
Outperform
$1.86B18.217.49%3.09%12.34%11.78%
72
Outperform
$1.03B23.949.80%2.37%16.02%18.29%
AWAWR
69
Neutral
$3.03B24.2713.95%2.37%6.79%5.96%
64
Neutral
$8.54B10.404.24%4.63%4.14%-13.05%
CWCWT
63
Neutral
$2.81B20.698.67%2.54%3.83%-8.75%
58
Neutral
$470.60M23.908.63%2.68%3.45%-19.90%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YORW
The York Water Company
32.64
-2.84
-8.00%
AWR
American States Water
78.27
9.49
13.80%
ARTNA
Artesian Resources
34.44
0.98
2.93%
CWT
California Water Service
46.71
-0.08
-0.17%
MSEX
Middlesex Water Company
57.13
6.33
12.46%
HTO
H2O America
53.54
3.39
6.76%
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.