AWR Stock Fair Value – AMERICAN STATES WATER Reports Earnings Results for Second Quarter of FY2023
August 15, 2023
🌥️Earnings Overview
AMERICAN STATES WATER ($NYSE:AWR) reported total revenue of USD 157.4 million for the second quarter of fiscal year 2023, a 28.4% increase compared to the same period in the previous year. Net income in this same period saw an impressive increase of 93.1%, amounting to USD 38.5 million. This report was released on June 30, 2023.
Market Price
Stock opened at $86.0 and closed at $87.1, up by 1.3% from the previous closing price of $86.0. The company also announced that they have implemented cost savings initiatives that are expected to save approximately $2 million in operating expenditures over the next year. These actions taken by the company demonstrate their continued commitment to their long-term financial strategy and financial strength.
They have reported strong growth in net income, revenue, and earnings per share, while also managing to reduce their debt levels through various cost saving initiatives. This performance bodes well for their future financial prospects going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWR. More…
| Total Revenues | Net Income | Net Margin |
| 579.17 | 117.01 | 20.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWR. More…
| Operations | Investing | Financing |
| 78.66 | -178.51 | 90.05 |
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 |
| 2.14k | 1.38k | 20.42 |
Key Ratios Snapshot
Some of the financial key ratios for AWR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.6% | 11.4% | 32.7% |
| FCF Margin | ROE | ROA |
| -17.2% | 15.9% | 5.5% |
Analysis – AWR Stock Fair Value
At GoodWhale, we recently conducted an analysis of AMERICAN STATES WATER’s fundamentals and have arrived at some interesting conclusions. Using our proprietary Valuation Line, we calculated the intrinsic value of AMERICAN STATES WATER’s share to be around $97.4. Currently, the market price of AMERICAN STATES WATER stock is at $87.1, which is a fair price undervalued by 10.6%. This presents a good buying opportunity to investors who are looking for potential long-term returns. More…
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 (AWR) has reported a strong second quarter for FY2023. Total revenue rose 28.4% year-over-year to $157.4 million, while net income saw an even larger increase of 93.1%, reaching $38.5 million. This impressive growth was primarily driven by an increase in rate base revenues, as well as higher water and electric sales volumes.
Additionally, AWR’s cost savings initiatives and favorable weather conditions also contributed to the stronger performance. Overall, these strong results suggest that AWR is well-positioned to deliver improved returns for investors in the future.
