The York Water Company (YORW) AI Stock Analysis

• Market Cap: $479.88M
• Dividend Yield: 2.68%
• Average Volume (3M): 74.65K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.11
• Revenue Growth: 3.63%
• EPS Growth: -5.82%
• Country: US
• Employees: 127
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.36
• Shares Outstanding: 14,434,680
• 10 Day Avg. Volume: 85,799
• 30 Day Avg. Volume: 74,651
• PEG Ratio: -10.83
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.37
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -34.26
• Enterprise Value/Ebitda: 21.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.57
• Revenue Forecast (FY): $87.01M

• Rating: 58 Neutral
• Price Target: $35.00 ▲(7.23% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily constrained by financial performance—especially persistently negative free cash flow through 2024, rising leverage, and inconsistency in the latest (2025) income statement data—despite otherwise steady profitability and operating cash generation. Technicals are mildly supportive with price above key moving averages and neutral momentum, while valuation is mid-range with a ~23.6 P/E balanced by a ~2.7% dividend yield.

Positive Factors

Regulated business model

York Water’s core revenue is tariff-based within a regulated franchise, creating predictable recovery of prudently incurred costs and an allowed return on invested capital. This framework supports stable long-term cash flows and earnings visibility versus unregulated peers.

Steady revenue growth & strong margins

Consistent top-line expansion and persistently high net margins reflect durable demand and regulated pricing power. Stable revenue and margin profiles improve ability to fund operations, capital projects and dividend policy, reducing execution risk over a multi‑quarter to multi‑year horizon.

Operating cash flow coverage and planned capex

Operating cash flow coverage of net income indicates earnings quality and internal cash generation. Management’s planned ~$48M/year infrastructure investments signal proactive renewal and capacity upgrades, supporting service reliability and long‑term customer growth despite near‑term funding needs.

Negative Factors

Rising leverage

Material debt increases have tightened balance-sheet flexibility and elevated financial risk. Higher leverage raises interest and refinancing exposure, limiting capacity for discretionary investments and increasing sensitivity to rate-case outcomes and interest-rate movements over the medium term.

Structurally negative free cash flow (2020–2024)

Chronic negative free cash flow across multiple years indicates capital spending outpacing internal generation, necessitating external financing or higher leverage. This pattern constrains self‑funding of growth and dividends and raises execution and financing risk absent sustained improvement.

2025 income statement inconsistency

Internal inconsistencies in the latest annual income statement reduce confidence in trend analysis and forecasting. Unclear or anomalous reporting complicates regulatory filings and investor assessment, potentially prompting restatements or additional scrutiny that can affect credibility.

The York Water Company Business Overview & Revenue Model

Company Description

The 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 Money

The York Water Company generates revenue primarily through the sale of water and wastewater services to its customers. The company operates under a regulated rate structure, meaning it sets its prices based on the rates approved by state regulatory agencies, such as the Pennsylvania Public Utility Commission. Key revenue streams include residential and commercial water usage fees, fixed monthly service charges, and wastewater treatment fees. Additionally, the company may earn income from investment income and other ancillary services. Significant partnerships include collaborations with local governments and municipalities for infrastructure improvements and expansion projects, which can enhance service delivery and reliability, further contributing to its earnings.

The York Water Company Financial Statement Overview

Summary

Profitable regulated-utility profile with steady revenue growth through 2024 and strong net margins, plus consistently positive operating cash flow. The score is held back by structurally negative free cash flow in 2020–2024 (capital spending needs), rising leverage over time, and an internally inconsistent 2025 income statement record that reduces confidence in the latest-year trend.

Income Statement

From 2020–2024, the company shows steady top-line expansion (revenue rising from ~53.9M to ~75.0M) and consistently strong profitability for a regulated utility profile (net margin generally ~27%–33%). However, the 2025 annual record appears internally inconsistent (revenue reported as 0 with negative gross profit, while EBIT and net income remain positive), which reduces confidence in the latest-year trend signals and pulls down the score despite otherwise stable earnings power.

Balance Sheet

Leverage has trended higher over time, with total debt increasing materially (from ~123.6M in 2020 to ~232.2M in 2025) and debt-to-equity moving toward ~1.0 in the latest period (about 0.97 in 2025). Equity has grown (about 143.3M in 2020 to ~240.3M in 2025), and return on equity remains in a steady mid-to-high single-digit range (~8%–11%), but the rising debt load limits balance-sheet flexibility relative to earlier years.

Cash Flow

Operating cash flow is consistently positive and generally covers net income (coverage above 1x in each year shown), which supports earnings quality. The key weakness is free cash flow: it is negative in every year from 2020–2024 (suggesting heavy capital spending), with large deficits in 2022–2024, and the free-cash-flow trend is volatile. While 2025 shows positive free cash flow (equal to operating cash flow in the data), the sharp swing versus prior years increases uncertainty around durability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	74.96M	71.03M	60.06M	55.12M
Gross Profit	-20.81M	55.29M	53.67M	45.93M	43.30M
EBITDA	33.48M	43.79M	43.83M	35.73M	31.52M
Net Income	20.06M	20.32M	23.76M	19.58M	16.98M
Balance Sheet
Total Assets	0.00	633.47M	588.21M	510.60M	458.85M
Cash, Cash Equivalents and Short-Term Investments	0.00	1.00K	1.00K	1.00K	1.00K
Total Debt	232.23M	205.56M	180.01M	139.47M	146.37M
Total Liabilities	440.54M	402.28M	367.03M	303.41M	306.23M
Stockholders Equity	240.35M	231.19M	221.18M	207.18M	152.62M
Cash Flow
Free Cash Flow	29.86M	-18.45M	-33.36M	-31.90M	-23.44M
Operating Cash Flow	29.86M	30.56M	31.91M	22.02M	22.96M
Investing Cash Flow	-48.73M	-49.01M	-65.27M	-53.92M	-46.40M
Financing Cash Flow	18.86M	18.45M	33.36M	31.90M	18.44M

The York Water Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YORW, the sentiment is Positive. The current price of 32.64 is above the 20-day moving average (MA) of 32.63, above the 50-day MA of 32.59, and above the 200-day MA of 31.40, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 46.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YORW.

The York Water Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTNA	70 Outperform	$354.58M	12.07	9.25%	3.87%	5.80%	12.33%
CWCO	68 Neutral	$607.06M	25.38	8.10%	1.40%	-17.62%	-54.25%
MSEX	67 Neutral	$1.03B	26.96	9.09%	2.67%	6.24%	3.35%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
YORW	58 Neutral	$479.88M	22.88	8.51%	2.68%	3.63%	-5.82%
GWRS	57 Neutral	$258.75M	77.24	6.30%	3.56%	7.06%	-38.94%
CDZI	55 Neutral	$447.96M	-13.71	-136.36%	―	188.33%	4.12%