📊 AWR Key Takeaways
Investment Thesis
American States Water demonstrates solid operational profitability with 30.9% operating margins and stable net margins of 19.8%, supported by strong interest coverage of 7.8x indicating manageable debt levels. However, concerning negative free cash flow of -7.1M despite $229.7M operating cash flow signals that capital expenditures exceed operational returns, which is unsustainable long-term despite the company's regulated utility status providing revenue stability.
AWR Strengths
- High operating margin of 30.9% and net margin of 19.8% demonstrate efficient operations in regulated water utility sector
- Strong interest coverage ratio of 7.8x indicates solid debt service capability with moderate leverage at 0.75x debt-to-equity
- Substantial operating cash flow of $229.7M provides base capital for infrastructure reinvestment typical in utilities sector
- 12.5% ROE and 4.8% ROA reflect reasonable returns on deployed capital for regulated utility
AWR Risks
- Negative free cash flow of -7.1M is concerning; CapEx of $236.8M exceeds operating cash flow, requiring debt financing or rate increases
- Extremely high revenue growth of 381.3% YoY appears anomalous and requires investigation into acquisition activity or accounting changes rather than organic growth
- Low cash position of only $18.8M relative to $2.7B total assets and $782.7M long-term debt limits financial flexibility for emergencies
- Deteriorating capital efficiency: rising CapEx requirements without corresponding FCF growth threatens dividend sustainability and equity returns
Key Metrics to Watch
- Free cash flow trend and sustainability of capital expenditure levels relative to operating cash generation
- Source and sustainability of 381% revenue growth - verify if organic or acquisition-driven
- Debt levels and refinancing needs given low cash reserves relative to debt burden
- Regulatory rate approval timelines to ensure CapEx investments generate authorized returns
AWR Financial Metrics
💡 AI Analyst Insight
AMERICAN STATES WATER CO presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AWR Profitability Ratios
AWR vs Default Sector
How AMERICAN STATES WATER CO compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AWR Balance Sheet & Liquidity
AWR 5-Year Financial Trend
5-Year Trend Summary: AMERICAN STATES WATER CO's revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.36 reflects profitable operations.
AWR Growth Metrics (YoY)
AWR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $161.8M | $23.1M | $0.95 |
| Q2 2025 | $155.3M | $23.1M | $0.85 |
| Q1 2025 | $135.3M | $23.1M | $0.62 |
| Q3 2024 | $151.7M | $23.1M | $0.85 |
| Q2 2024 | $155.3M | $23.1M | $0.85 |
| Q1 2024 | $135.3M | $23.1M | $0.62 |
| Q3 2023 | $135.0M | $14.2M | $0.69 |
| Q2 2023 | $122.6M | $14.2M | $0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AWR Capital Allocation
AWR SEC Filings
Access official SEC EDGAR filings for AMERICAN STATES WATER CO (CIK: 0001056903)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AWR
What is the AI rating for AWR?
AMERICAN STATES WATER CO (AWR) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AWR's key strengths?
High operating margin of 30.9% and net margin of 19.8% demonstrate efficient operations in regulated water utility sector. Strong interest coverage ratio of 7.8x indicates solid debt service capability with moderate leverage at 0.75x debt-to-equity.
What are the risks of investing in AWR?
Negative free cash flow of -7.1M is concerning; CapEx of $236.8M exceeds operating cash flow, requiring debt financing or rate increases. Extremely high revenue growth of 381.3% YoY appears anomalous and requires investigation into acquisition activity or accounting changes rather than organic growth.
What is AWR's revenue and growth?
AMERICAN STATES WATER CO reported revenue of $658.1M.
Does AWR pay dividends?
AMERICAN STATES WATER CO pays dividends, with $74.7M distributed to shareholders in the trailing twelve months.
Where can I find AWR SEC filings?
Official SEC filings for AMERICAN STATES WATER CO (CIK: 0001056903) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AWR's EPS?
AMERICAN STATES WATER CO has a diluted EPS of $3.37.
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.