📊 AVA Key Takeaways
Investment Thesis
Avista demonstrates stable utility fundamentals with solid operating margins (18%) and strong interest coverage (13.4x), supporting its regulated business model. However, negative free cash flow (-$101M) and weak liquidity ratios (current ratio 0.83x) raise concerns about capital structure sustainability and dividend coverage capacity amid high capex requirements.
AVA Strengths
- Strong operating margin of 18% reflects pricing power and operational efficiency typical of regulated utilities
- Robust interest coverage ratio of 13.4x demonstrates comfortable debt servicing capacity
- Consistent revenue generation ($2B) with stable net income ($193M) showing business resilience
- Moderate leverage with Debt/Equity of 0.93x within acceptable utility sector range
AVA Risks
- Negative free cash flow of -$101M indicates capex exceeds operating cash flow, requiring external financing
- Weak liquidity position with current ratio of 0.83x and quick ratio of 0.56x below healthy thresholds
- Low ROE (7.1%) and ROA (2.3%) suggest limited capital efficiency relative to asset base of $8.4B
- Minimal cash reserves ($19M) combined with negative FCF creates vulnerability to operational disruptions
Key Metrics to Watch
- Free cash flow trend and capex reductions or funding strategy to achieve positive FCF
- Current ratio movement and working capital management effectiveness
- Operating cash flow growth relative to revenue expansion to improve FCF conversion
- Debt refinancing rates given $2.5B long-term debt burden and interest rate environment
AVA Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AVA Profitability Ratios
AVA vs Default Sector
How AVISTA CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AVA Balance Sheet & Liquidity
AVA 5-Year Financial Trend
5-Year Trend Summary: AVISTA CORP's revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.24 reflects profitable operations.
AVA Growth Metrics (YoY)
AVA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $394.0M | $18.0M | $0.23 |
| Q2 2025 | $402.0M | $14.0M | $0.17 |
| Q1 2025 | $609.0M | $71.0M | $0.91 |
| Q3 2024 | $379.6M | $14.7M | $0.19 |
| Q2 2024 | $379.9M | $17.5M | $0.23 |
| Q1 2024 | $474.6M | $54.8M | $0.73 |
| Q3 2023 | $359.4M | -$5.8M | $-0.08 |
| Q2 2023 | $378.6M | $11.5M | $0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AVA Capital Allocation
AVA SEC Filings
Access official SEC EDGAR filings for AVISTA CORP (CIK: 0000104918)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVA
What is the AI rating for AVA?
AVISTA CORP (AVA) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVA's key strengths?
Strong operating margin of 18% reflects pricing power and operational efficiency typical of regulated utilities. Robust interest coverage ratio of 13.4x demonstrates comfortable debt servicing capacity.
What are the risks of investing in AVA?
Negative free cash flow of -$101M indicates capex exceeds operating cash flow, requiring external financing. Weak liquidity position with current ratio of 0.83x and quick ratio of 0.56x below healthy thresholds.
What is AVA's revenue and growth?
AVISTA CORP reported revenue of $2.0B.
Does AVA pay dividends?
AVISTA CORP pays dividends, with $159.0M distributed to shareholders in the trailing twelve months.
Where can I find AVA SEC filings?
Official SEC filings for AVISTA CORP (CIK: 0000104918) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVA's EPS?
AVISTA CORP has a diluted EPS of $2.38.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.