The York Water Company (YORW) AI Stock Analysis

• Market Cap: $489.91M
• Dividend Yield: 2.68%
• Average Volume (3M): 73.04K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.12
• Revenue Growth: 3.63%
• EPS Growth: -5.82%
• Country: US
• Employees: 127
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.43
• Shares Outstanding: 14,434,680
• 10 Day Avg. Volume: 69,161
• 30 Day Avg. Volume: 73,042
• PEG Ratio: -1.60
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 6.27
• P/FCF Ratio: -25.46
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 8.66
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 15.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.58
• Revenue Forecast (FY): $84.00M

• Rating: 69 Neutral
• Price Target: $35.00 ▲(7.23% Upside)

The York Water Company shows strong financial performance with robust revenue growth and profitability, though challenged by negative free cash flow. Technical indicators suggest positive momentum, while valuation metrics indicate a potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for services, supporting long-term business expansion and stability.

Profitability

High profit margins reflect efficient operations and pricing power, contributing to sustained profitability and competitive advantage.

Stable Leverage

Stable leverage indicates prudent financial management, ensuring the company can manage its debt obligations without compromising growth.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests challenges in cash management, potentially limiting the company's ability to invest in growth and handle financial obligations.

Declining EBIT Margin

A declining EBIT margin may indicate rising operational costs or inefficiencies, which could pressure future profitability if not addressed.

Cash Flow Management

Ineffective cash flow management can hinder the company's ability to fund operations and growth initiatives, affecting long-term financial health.

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

The York Water Company demonstrates strong revenue growth and operational efficiency, with healthy margins and cash flow generation. However, increasing leverage and slight declines in profitability metrics warrant attention. Overall, the company is financially stable with a positive growth trajectory, but should monitor cost management and leverage levels.

Income Statement

The York Water Company shows a strong revenue growth rate of 59.2% in the TTM period, indicating robust top-line expansion. Gross profit margin and net profit margin are healthy at 69.13% and 25.83% respectively, though slightly lower than previous years. EBIT and EBITDA margins remain solid, reflecting operational efficiency. However, the slight decline in margins compared to previous years suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 0.93, indicating moderate leverage, which is typical for the industry but has increased over time. Return on equity is stable at 8.50%, though it has decreased from previous years, suggesting a slight decline in profitability. The equity ratio is reasonable, reflecting a balanced capital structure.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.82, indicating good cash generation relative to net income. Free cash flow has improved significantly, showing a growth rate of 162.53% in the TTM period, though historical volatility in free cash flow remains a concern. The free cash flow to net income ratio is positive, suggesting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.88M	74.96M	71.03M	60.06M	55.12M	53.85M
Gross Profit	56.45M	55.29M	53.67M	45.93M	43.30M	43.07M
EBITDA	43.17M	43.79M	43.83M	35.73M	31.52M	31.25M
Net Income	20.03M	20.32M	23.76M	19.58M	16.98M	16.60M
Balance Sheet
Total Assets	667.06M	633.47M	588.21M	510.60M	458.85M	406.96M
Cash, Cash Equivalents and Short-Term Investments	1.00K	1.00K	1.00K	1.00K	1.00K	2.00K
Total Debt	227.32M	205.56M	180.01M	139.47M	146.37M	123.57M
Total Liabilities	429.04M	402.28M	367.03M	303.41M	306.23M	263.70M
Stockholders Equity	238.02M	231.19M	221.18M	207.18M	152.62M	143.25M
Cash Flow
Free Cash Flow	-21.25M	-18.45M	-33.36M	-31.90M	-23.44M	-13.06M
Operating Cash Flow	31.60M	30.56M	31.91M	22.02M	22.96M	20.23M
Investing Cash Flow	-52.85M	-49.01M	-65.27M	-53.92M	-46.40M	-32.63M
Financing Cash Flow	21.25M	18.45M	33.36M	31.90M	18.44M	17.39M

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: Negative

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 32.62, above the 50-day MA of 32.51, and above the 200-day MA of 31.92, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 91.98 is Negative, 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	$352.70M	15.60	9.25%	3.87%	5.80%	12.33%
YORW	69 Neutral	$489.91M	24.38	8.58%	2.68%	3.63%	-5.82%
CWCO	68 Neutral	$596.79M	35.62	8.10%	1.40%	-17.62%	-54.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MSEX	59 Neutral	$998.68M	22.86	9.27%	2.67%	6.24%	3.35%
GWRS	58 Neutral	$254.44M	54.13	6.30%	3.56%	7.06%	-38.94%
CDZI	55 Neutral	$575.12M	-14.15	-136.36%	―	188.33%	4.12%