American States Water Company
$77.02
+0.98%American States Water Company, through its subsidiaries, provides water and electric services to residential, commercial, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. The company purchases, produces, distributes, and sells water, as well as distributes electricity. As of December 31, 2021, American States Water Company provided water service to 262,770 customers located throughout 10 counties in the State of California; and distributed electricity to 24,656 customers in San Bernardino County mountain communities in California. The company also provides water and/or wastewater services, including the operation, maintenance, and construction of facilities at the water and/or wastewater systems at various military installations. American States Water Company was incorporated in 1929 and is based in San Dimas, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 22.9).
Valuation inputs: P/E 22.9, earnings yield +4.4%, momentum +1.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.5%, ROIC +6.1%).
Profitability stack: net margin +19.8%, ROE +12.5%, ROIC +6.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +61.5%, momentum +1.0%, net margin +19.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
American States Water Company Market vs Earnings Trajectory
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American States Water Company Fair Value Envelope
American States Water Company Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
American States Water Company Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
American States Water Company Funding & Solvency Profile
Financial Health Analysis
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
American States Water Company Street Expectations Map
Wall Street analysts project that AWR stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 89.50, with estimates ranging from a low of 87.00 to a high of 92.00.
The consensus 1-year price target stands at 89.50, with estimates ranging from a low of 87.00 to a high of 92.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
American States Water Company Insider Positioning
During the last 12 months, insiders have purchased $139K and sold $189K worth of AWR shares, resulting in $50K of net selling activity.
3 Months
660
50.11K
2.0K
149.20K
-99K
-$99K
3-6 Months
138
10.14K
0
0.00
+10K
+$10K
6-9 Months
135
10.07K
528
40.08K
-30K
-$30K
9-12 Months
897
68.90K
0
0.00
+69K
+$69K
Top Buyers
Holloway Anne M
Director
$70K
Eichelberger Thomas A.
Director
$69K
Top Sellers
Rowley Paul J
Officer: Svp Of Operations
$99K
Holloway Anne M
Director
$90K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $50K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Recent Trend (3 Months)
Negative recent trend with net selling. Insiders have reduced positions in recent months, which could signal caution.
Insider Participation
2 insider buyers and 2 sellers. Equal participation suggests mixed or neutral insider views.
awr Dividend History
Learning Layer
Related Guides
Build conviction on AWR by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.