AWR Stock Fair Value – Exchange Traded Concepts LLC Reduces Stake in American States Water
June 29, 2023
🌥️Trending News
Exchange Traded Concepts LLC has recently reduced its holdings in American States Water ($NYSE:AWR) Company, as reported by Defense World. American States Water Company is an American publicly traded water and electric utility company that is headquartered in San Dimas, California. The company provides water and wastewater services in California, as well as electric service to parts of the state. It also offers contracted services for other utility corporations and military bases. The company is listed on the New York Stock Exchange and trades under the ticker symbol “AWR”. In addition, American States Water operates a subsidiary, Golden State Water Company, which distributes water to over a million customers.
However, whatever the reason may be, it is certain that the company remains an important player in the water and electric utility industry.
Stock Price
The news of the reduced stake by ETC has had a minor impact on AWR’s stock price, with the stock ending the session unchanged from its opening price. 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 |
| 544.38 | 98.39 | 18.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWR. More…
| Operations | Investing | Financing |
| 86.74 | -181.22 | 86.48 |
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 |
| 2.06k | 1.33k | 19.77 |
Key Ratios Snapshot
Some of the financial key ratios for AWR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | 5.0% | 29.3% |
| FCF Margin | ROE | ROA |
| -17.2% | 13.8% | 4.8% |
Analysis – AWR Stock Fair Value
At GoodWhale, we have conducted a comprehensive analysis of the fundamentals of AMERICAN STATES WATER and have arrived at a conclusion that the fair value of their share is approximately $92.4. This was calculated using our proprietary Valuation Line. The stock is currently trading at $84.9 which makes it a fair price but unfortunately an undervalued one by 8.1%. This discrepancy can be taken advantage of by investors to reap good 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) is a publicly traded water and utility services company based in California. The company provides water and wastewater services to residential, commercial and industrial customers within its service territories in California, Texas and New Mexico. This suggests that Exchange Traded Concepts LLC believes that there is a diminished potential for growth in the company and that the stock may be overvalued. Investors should remain aware of potential risks associated with investing in American States Water, such as changes in regulations, changes in customer demands, abrupt changes in commodity prices, and other environmental risks.
Despite these risks, analysts still see significant potential for growth in the company due to its strong foothold in the water and utility services industry. Investors should remain mindful of the risks associated with investing in AWR, but should also consider this investment opportunity for long-term growth.
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