AWR Intrinsic Value Calculation – AMERICAN STATES WATER Reports 12.4% Increase in Total Revenue for Q3 FY2023 at USD 151.7 Million
December 3, 2023
☀️Earnings Overview
On November 6, 2023, AMERICAN STATES WATER ($NYSE:AWR) reported total revenue of USD 151.7 million and net income of USD 31.6 million for the third quarter of FY2023 ending September 30, 2023, representing a year-over-year increase of 12.4% and 23.0%, respectively.
Analysis – AWR Intrinsic Value Calculation
GoodWhale has conducted an in-depth analysis of AMERICAN STATES WATER’s health and concluded that the company is doing well. Based on this analysis, GoodWhale’s proprietary Valuation Line has calculated the fair value of AMERICAN STATES WATER’s share to be around $99.0. However, currently, the stock is being traded at $82.4, which is a fair price but undervalued by 16.7%. This indicates that there is an opportunity to buy AMERICAN STATES WATER shares at a discounted rate and make a profit in the long term. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWR. More…
| Total Revenues | Net Income | Net Margin |
| 595.89 | 122.79 | 20.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWR. More…
| Operations | Investing | Financing |
| 84.38 | -180.55 | 102.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AWR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.21k | 1.43k | 20.86 |
Key Ratios Snapshot
Some of the financial key ratios for AWR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | 14.6% | 33.7% |
| FCF Margin | ROE | ROA |
| -16.1% | 16.5% | 5.7% |
Peers
The Company operates through two segments: Water and Electric. American States Water Company provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California and Arizona. The Company is the largest shareholder-owned water utility in California. American States Water Company’s subsidiaries include Golden State Water Company and Arizona Water Company. SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. The Company operates through three segments: Water Utility Services, Real Estate Services, and Corporate and Other. SJW Group provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California, Texas, Connecticut, and Massachusetts. American Water Works Co Inc is a publicly traded water and wastewater utility company headquartered in Voorhees, New Jersey. The Company operates through three segments: Regulated Businesses, Market-Based Operations, and Homeowner Services. American Water Works Company Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of Illinois, New Jersey, Pennsylvania, Virginia, West Virginia, Kentucky, Ohio, Michigan, Indiana, North Carolina, South Carolina, Maryland, Delaware, Florida, Louisiana, Georgia, Colorado, Nevada, New Mexico, Oklahoma, Texas, and Wyoming. Global Water Resources Inc is a publicly traded water and wastewater utility company headquartered in Scottsdale, Arizona. The Company operates through two segments: Regulated Operations and Non-Regulated Operations. Global Water Resources Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the state of Arizona.
– SJW Group ($NYSE:SJW)
SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. It is the holding company for San Jose Water Company, SJWTX, Inc., and SJW Land Company. As of 2019, SJW Group served more than one million people in San Jose, California; Austin, Texas; and Connecticut.
The company has a market cap of 1.88B as of 2022 and a Return on Equity of 7.1%. SJW Group’s market cap is the fourth highest of all water and wastewater utilities in the United States. The company’s ROE is above the average for all water and wastewater utilities in the United States.
– American Water Works Co Inc ($NYSE:AWK)
The American Water Works Company, Inc. is the largest publicly traded U.S. water and wastewater utility company. It provides water and wastewater services to an estimated 15 million people in 47 states and Ontario, Canada. The company operates through six segments: Regulated Businesses, Market-Based Businesses, Homeowner Services, Contracted Services, Other, and Corporate & Other. The company was founded in 1886 and is headquartered in Voorhees, New Jersey.
– Global Water Resources Inc ($NASDAQ:GWRS)
As of 2022, Global Water Resources Inc has a market cap of 277.81M and a ROE of 30.2%. The company is involved in the development, ownership, and operation of water and wastewater utilities in the United States.
Summary
American States Water reported strong financial results for the third quarter of FY2023, with total revenue increasing 12.4% to USD 151.7 million and net income increasing 23.0% to USD 31.6 million. This growth was driven by investments in infrastructure and customer service, as well as a focus on cost efficiency. These figures demonstrate the company’s ability to generate strong returns for investors, with shareholders likely to benefit from the robust cash flows generated by the company. As such, American States Water appears to be an attractive investment opportunity at this time.
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