AWR

American States Water

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Utilities

industry

Utilities - Regulated Water

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

American States Water operates regulated water utilities, generating predictable revenue through rate-based structures that allow it to earn an approved return on invested capital. Cash flow is driven by essential water service demand, which is non-discretionary and economically resilient. The moat comes from regulatory barriers, entrenched infrastructure, and localized monopoly positions that make competition impractical. Capital investments expand the rate base over time, supporting incremental earnings growth while maintaining steady operating margins within a controlled regulatory framework.

VALUATION

P/E

23.6

Market Cap ($M USD)

$3,114

Forward P/E

21.2

PEG

4.3

PRICE TO SALES

4.7

PRICE TO BOOK

3

EV / EBITDA

15.2

5-Year Average P/E

DIVIDEND

Yield

2.50%

Annual Payout

$2.02

Payout Ratio

57.50%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

8.50%

Financial Health & Profitability

Earnings Per Share

$3.37

Next Year EPS Growth Estimate

$3.75

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

12.40%

Operating Margin

30.90%

Debt-to-Equity

0.9

Piotroski F-Score

5

Altman Z-Score

2

Return on Invested Capital (ROIC)

8.40%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 23.6x earnings and 21.2x forward earnings, AWR is priced like a stable compounder, yet the 4.3 forward PEG screams overvaluation relative to its growth profile. The Altman Z-Score of 2 places it in a gray zone—not distressed, but hardly fortress-grade—while a Piotroski F-Score of 5 signals only middling financial strength. An ROIC of 8.40% against a 3 Price/Book suggests returns are respectable but not exceptional for the premium being paid. This is not a deep value setup; it’s a fully priced regulated utility with modest financial resilience and limited growth justification embedded in the multiple.

AI Exposure / Tech Reliance

As a regulated water utility, AWR operates in an industry largely insulated from AI disruption but unlikely to experience AI-driven revenue acceleration. Technology adoption will likely focus on operational efficiency and infrastructure monitoring rather than transformative growth. Its resilience lies in essential service demand, not technological leverage.

The Bull Case

A value or GARP investor could justify ownership based on the stability embedded in a regulated water utility model combined with an 8.40% ROIC and a 12.40% operating margin, which reflect disciplined capital deployment in a capital-intensive industry. Debt/Equity at 30.90% is conservative relative to many utilities, providing balance sheet flexibility, while a Current Ratio of 1.3 supports adequate short-term liquidity. Institutional ownership at 72.00% indicates serious capital backing the story, and a 0.9 yield paired with a 2.50% dividend per share suggests a shareholder-return framework that complements steady cash generation. The Piotroski F-Score of 5 is not elite, but it signals operational stability rather than deterioration, which, in a defensive sector, can be enough for long-duration investors seeking predictable compounding.

The Bear Case

The 4.3 PEG ratio is the most glaring red flag: investors are paying growth-stock multiples for what is fundamentally a low-growth regulated utility. A Short % of Float at 8.50% shows a meaningful cohort betting against the name, and the Altman Z-Score of 2 hints at moderate balance sheet vulnerability if capital markets tighten. Operating Margin at 12.40% is solid but not high enough to justify a 4.7 Price/Sales multiple in a slow-growth industry. Combine that with only a mid-tier Piotroski score of 5, and you have a company priced for safety and consistency but lacking the financial strength metrics that would make that premium unquestionably deserved.

Market Sentiment & Smart Money

Short Interest %

3.70%

Analyst Consensus

3.33

Average Analyst Price Target

$72.00

Institutional Ownership %

84.70%

1-Year Beta

-0.08

Insider Buying % (6 Mo)

0.80%%

Distance to 52-Week High

95.80%%

Distance to 52-Week Low

114.40%%