AVA

Avista

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Utilities

industry

Utilities - Diversified

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Avista operates as a regulated electric and natural gas utility, generating revenue through state-approved rate structures that provide predictable cash flows tied to infrastructure investment. Its moat is rooted in regulated monopoly territories, where high capital requirements and regulatory barriers prevent new entrants. Cash generation comes from long-lived transmission, distribution, and generation assets that earn authorized returns on invested capital. The durability of the model depends less on competitive advantage and more on regulatory relationships and disciplined capital allocation, making financial stability and balance sheet strength the true drivers of shareholder value.

VALUATION

P/E

17.6

Market Cap ($M USD)

$3,455

Forward P/E

14.8

PEG

2.3

PRICE TO SALES

1.7

PRICE TO BOOK

1.3

EV / EBITDA

10.3

5-Year Average P/E

DIVIDEND

Yield

4.70%

Annual Payout

$1.96

Payout Ratio

82.40%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

3.10%

Financial Health & Profitability

Earnings Per Share

$2.38

Next Year EPS Growth Estimate

$2.83

Next Year Revenue Growth Estimate

3.90%

Return on Equity (ROE)

7.10%

Operating Margin

18.00%

Debt-to-Equity

1.2

Piotroski F-Score

4

Altman Z-Score

0.9

Return on Invested Capital (ROIC)

5.40%%

Current Ratio

0.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 17.6x earnings and 14.8x forward earnings, AVA trades like a stable regulated utility, not a distressed balance sheet story—yet the 0.9 Altman Z-Score is flashing financial stress risk. The 2.3 forward PEG suggests growth is not compelling relative to valuation, particularly with Return on Equity at just 3.90% and ROIC at 5.40%, both weak for capital-intensive utilities. The market appears to be pricing in earnings stability rather than growth acceleration, but the sub-1.0 Z-Score and a thin 7.10% operating margin imply limited margin for error. This is not a deep value mispricing; it is a statistically fragile utility priced at a modest premium to its balance sheet strength.

AI Exposure / Tech Reliance

As a diversified utility, AVA operates in a sector that benefits from grid modernization and AI-driven demand growth, particularly as electrification and data center loads increase. Utilities are natural beneficiaries of AI indirectly through higher electricity demand, not through software-driven margin expansion. However, with a 7.10% operating margin and 5.40% ROIC, the company lacks clear evidence of superior capital deployment into next-generation infrastructure.

The Bull Case

A value-oriented investor could argue the stock offers steady, regulated cash flows at a reasonable 14.8 forward P/E with a 1.3 price-to-book ratio, suggesting limited valuation excess. Institutional ownership at 38.60% indicates credible capital backing, while a 3.10% short float shows no aggressive bearish positioning. The 5.40% ROIC exceeding the 0.8 current ratio constraints suggests the company is still generating returns above short-term liquidity pressure, and a Piotroski F-Score of 4 signals operational stability rather than collapse. With a 4.70% dividend and a payout ratio of 1.96, income-focused investors may see dependable yield as the primary attraction in a defensive sector.

The Bear Case

The balance sheet is the central concern: an Altman Z-Score of 0.9 is firmly in distress territory, and a current ratio of 0.8 signals tight liquidity. While Debt/Equity at 18.00% appears modest, the weak 3.90% ROE and 7.10% operating margin suggest the capital structure is not producing strong shareholder returns. A forward PEG of 2.3 implies growth expectations are expensive relative to earnings expansion, and with EPS Next Year estimated at $2.38 versus current EPS of 10.3, earnings visibility looks inconsistent. Add a mediocre Piotroski F-Score of 4, and this becomes a low-quality balance sheet story dressed up as a safe utility.

Market Sentiment & Smart Money

Short Interest %

6.60%

Analyst Consensus

3.43

Average Analyst Price Target

$38.60

Institutional Ownership %

88.40%

1-Year Beta

0.05

Insider Buying % (6 Mo)

0.90%%

Distance to 52-Week High

96.30%%

Distance to 52-Week Low

117.90%%