Fact based stock research
Aqua America (NYSE:WTR)
US29670G1022
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Aqua America stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Aqua America (Water Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of Aqua America are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives). But they show above-average growth (Growth Rank of 97) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Aqua America's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Aqua America exhibits low value (Obermatt Value Rank of 25), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 97). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Water Utilities |
| Index | Employee Focus US, Water Tech, S&P MIDCAP |
| Size class | Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Aqua America
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 13 |
|
13 |
|
24 |
|
25 |
|
| GROWTH | ||||||||
| GROWTH | 93 |
|
85 |
|
55 |
|
97 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
67 |
|
79 |
|
69 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
90 |
|
56 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
83 |
|
60 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Aqua America (Water Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of Aqua America are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives). But they show above-average growth (Growth Rank of 97) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Aqua America's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Aqua America exhibits low value (Obermatt Value Rank of 25), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 97). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 13 |
|
13 |
|
24 |
|
25 |
|
| GROWTH | ||||||||
| GROWTH | 93 |
|
85 |
|
55 |
|
97 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
67 |
|
79 |
|
69 |
|
| COMBINED | ||||||||
| COMBINED | 32 |
|
75 |
|
60 |
|
89 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Aqua America shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Aqua America. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 10 which means the stock price compared with what market professionals expect for future profits is higher than 90% of comparable companies, indicating a low value concerning Aqua America's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55 and for the dividend yields rank which is lower than for 61% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Aqua America's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Aqua America, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 5 |
|
10 |
|
13 |
|
10 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 27 |
|
15 |
|
25 |
|
36 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 29 |
|
23 |
|
44 |
|
55 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 39 |
|
25 |
|
34 |
|
39 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 13 |
|
13 |
|
24 |
|
25 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2024, Aqua America shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Aqua America. Sales Growth has a value of 94 which means that currently professionals expect the company to grow more than 94% of its competitors. Profit Growth with a value of 82 and Capital Growth with a rank of 73 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 45, which means that stock returns have recently been below 55% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, is a buy recommendation for growth and momentum investors. Aqua America has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Aqua America, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 98 |
|
93 |
|
76 |
|
94 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 25 |
|
48 |
|
67 |
|
82 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
57 |
|
77 |
|
73 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 45 |
|
33 |
|
11 |
|
45 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 93 |
|
85 |
|
55 |
|
97 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 69 (better than 69% compared with alternatives), the company Aqua America has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Aqua America is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Aqua America. Leverage is at 66, meaning the company has a below-average debt-to-equity ratio. It has less debt than 66% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 50, which means that the company generates more profit to service its debt than 50% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 69 (better than 69% compared with alternatives), Aqua America has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Aqua America but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 54 |
|
62 |
|
60 |
|
66 |
|
| REFINANCING | ||||||||
| REFINANCING | 29 |
|
65 |
|
53 |
|
55 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 13 |
|
48 |
|
58 |
|
50 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 16 |
|
67 |
|
79 |
|
69 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
82 |
|
85 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
26 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
65 |
|
56 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
80 |
|
49 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
90 |
|
56 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Aqua America from November 14, 2024.
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