📊 AVA Key Takeaways
Is Avista Corp. (AVA) a Good Investment?
Avista is a stable utility with solid operating margins (23.5%) and reliable operating cash flow ($179M), but generates minimal free cash flow ($29M) and weak returns on equity (3.3%), indicating the company is capital-intensive with limited financial flexibility. Near-flat net income growth and low returns on assets suggest mature operations without meaningful expansion prospects.
Avista shows stable utility-like fundamentals with solid operating profitability, strong interest coverage, and manageable balance-sheet leverage. However, growth is modest, net income is flat, liquidity is tight, and free cash flow is negative because capital spending exceeds operating cash generation. The business appears fundamentally resilient, but the quality of growth depends on whether elevated investment translates into future earnings and cash flow improvement.
Why Buy Avista Corp. Stock? AVA Key Strengths
- Strong operating margins of 23.5% typical of regulated utilities
- Reliable operating cash flow of $179M providing financial stability
- Manageable leverage with debt/equity of 0.91x and interest coverage of 5.1x
- Stable profitability with an 18.0% operating margin and 9.8% net margin
- Manageable leverage with 0.93x debt-to-equity and strong 13.4x interest coverage
- Positive operating cash flow of $469.00M supports ongoing operations despite heavy investment needs
AVA Stock Risks: Avista Corp. Investment Risks
- Extremely low return on equity (3.3%) and assets (1.1%) indicating capital inefficiency
- Minimal free cash flow of only $29M relative to $8.4B asset base limits growth and dividend flexibility
- Very low cash balance ($18M) relative to long-term debt ($2.5B) and capital intensity
- Flat net income growth (0.0% YoY) despite revenue growth suggests operational headwinds
- Current ratio of 0.90x indicates potential liquidity constraints
- Negative free cash flow of -$101.00M indicates capital intensity is currently outpacing internal cash generation
- Weak liquidity with a 0.83x current ratio, 0.56x quick ratio, and only $19.00M of cash
- Limited growth quality as revenue rose just 1.3% while net income was flat year over year
Key Metrics to Watch
- Free cash flow generation and FCF margin trends
- Return on equity progression toward utility sector benchmarks
- Debt-to-equity ratio and absolute debt levels given weak FCF coverage
- Operating cash flow sustainability and capital expenditure requirements
- Revenue growth acceleration and operating leverage improvement
- Free cash flow and operating cash flow relative to capital expenditures
- Net income and ROE improvement alongside liquidity levels
Avista Corp. (AVA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AVA Profit Margin, ROE & Profitability Analysis
AVA vs Utilities Sector: How Avista Corp. Compares
How Avista Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avista Corp. Stock Overvalued? AVA Valuation Analysis 2026
Based on fundamental analysis, Avista Corp. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avista Corp. Balance Sheet: AVA Debt, Cash & Liquidity
AVA Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
AVA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $570.0M | $79.0M | $0.98 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avista Corp. Dividends, Buybacks & Capital Allocation
AVA SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVA's key strengths?
Claude: Strong operating margins of 23.5% typical of regulated utilities. Reliable operating cash flow of $179M providing financial stability. ChatGPT: Stable profitability with an 18.0% operating margin and 9.8% net margin. Manageable leverage with 0.93x debt-to-equity and strong 13.4x interest coverage.
What are the risks of investing in AVA?
Claude: Extremely low return on equity (3.3%) and assets (1.1%) indicating capital inefficiency. Minimal free cash flow of only $29M relative to $8.4B asset base limits growth and dividend flexibility. ChatGPT: Negative free cash flow of -$101.00M indicates capital intensity is currently outpacing internal cash generation. Weak liquidity with a 0.83x current ratio, 0.56x quick ratio, and only $19.00M of cash.
What is AVA's revenue and growth?
Avista Corp. reported revenue of $570.0M.
Does AVA pay dividends?
Avista Corp. pays dividends, with $41.0M 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 $1.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AVA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Avista Corp. has a HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AVA stock overvalued or undervalued?
Valuation metrics for AVA: ROE of 3.3% (sector avg: 10%), net margin of 16.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AVA stock in 2026?
Our dual AI analysis gives Avista Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AVA's free cash flow?
Avista Corp.'s operating cash flow is $179.0M, with capital expenditures of $150.0M. FCF margin is 5.1%.
How does AVA compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 16.1% (avg: 12%), ROE 3.3% (avg: 10%), current ratio 0.90 (avg: 0.8).