Fact based stock research
American States Water (NYSE:AWR)

US0298991011

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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.

American States Water stock research in summary

aswater.com

ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), American States Water (Water Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of American States Water are low in value (priced high) with a consolidated Value Rank of 5 (worse than 95% of alternatives). But they show above-average growth (Growth Rank of 93) and are safely financed (Safety Rank of 88, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on American States Water's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company American States Water exhibits low value (Obermatt Value Rank of 5), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 93). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 88) 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

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	5
Growth Rank	93
Safety Rank	88
Combined Rank	84

Country	USA
Industry	Water Utilities
Index
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: American States Water

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	7	1	5
GROWTH
GROWTH	28	47	53	93
SAFETY
SAFETY	38	98	98	88
SENTIMENT
SENTIMENT	n/a	3	9	^new
360° VIEW
360° VIEW	n/a	23	22	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better American States Water is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	7	1	5
GROWTH
GROWTH	28	47	53	93
SAFETY
SAFETY	38	98	98	88
COMBINED
COMBINED	6	64	52	84

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of American States Water the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 5 (worse than 95% compared with alternatives), American States Water shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for American States Water. Price-to-Sales is 10 which means that the stock price compared with what market professionals expect for future profits is higher than 90% of comparable companies, indicating a low value concerning American States Water's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 6, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of American States Water. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 7 and Dividend Yield, which is lower than 85% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 5, is a sell recommendation based on American States Water's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for American States Water? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as American States Water? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. American States Water may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. 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)	6	10	8	10
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	16	10	8	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	8	5	7	6
DIVIDEND YIELD
DIVIDEND YIELD	40	11	11	15
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	3	7	1	5

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of American States Water; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, American States Water 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 American States Water. Sales Growth has a value of 86 which means that currently professionals expect the company to grow more than 86% of its competitors. Profit Growth with a value of 90 and Capital Growth with a rank of 71 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 29, which means that stock returns have recently been below 71% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. American States Water 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 American States Water, 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	24	67	52	86
PROFIT GROWTH
PROFIT GROWTH	27	27	96	90
CAPITAL GROWTH
CAPITAL GROWTH	n/a	33	32	71
STOCK RETURNS
STOCK RETURNS	48	65	45	29
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	28	47	53	93

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of American States Water.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company American States Water has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of American States Water 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 American States Water. Leverage is at 76, meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors. Refinancing is at a rank of 50, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. Finally, Liquidity is also good at a rank of 94, which means that the company generates more profit to service its debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), American States Water has a financing structure that is significantly 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 American States Water 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	74	88	86	76
REFINANCING
REFINANCING	38	76	78	50
LIQUIDITY
LIQUIDITY	33	96	92	94
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	38	98	98	88

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of American States Water and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	19	12	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	59	13	^new
MARKET PULSE
MARKET PULSE	n/a	14	30	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	9	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for American States Water.
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