American States Water Company Common Stock (AWR)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable demand, fair prices, and honest accounting. American States Water fits the first part: it provides regulated water to about 265,100 customers and electricity to about 24,900 customers, with 900 employees. Utility service territories are not glamorous, but they are predictable. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $181.3M, net income $43.3M, and diluted EPS $1.09. A year earlier, fiscal Q2 2025 had revenue $163.1M, net income $33.7M, and diluted EPS $0.87, so earnings are moving in the right direction. Fiscal Q1 2026 added revenue $169.2M, net income $29.9M, and diluted EPS $0.76. The returns are respectable: FairStock calculates ROE at 13.67%, though ROCE is only 5.26%, showing how much capital this business consumes. The balance sheet is not a fortress; debt-to-equity is 0.82 and Altman Z-Score is 1.66. Free cash flow is thin: trailing twelve-month FCF is $20.7M, a 0.6% FCF yield on a $3.3B market cap. Valuation asks a lot: at the 2026-10-13 close of $82.51, FairStock shows P/E 22.54, P/B 2.92, PEG 1.95, and EV/EBITDA 14.56. The Graham Number is $48.27, leaving a negative margin of safety of 70.93%. The 2.55% dividend yield and 0.56 beta are attractive for income, and Lynch calls it a STALWART on 8.6% profit growth and 2.5% revenue growth over five years. But a 50/100 FairStock score tells me the price already reflects much of the good news. I would need a wider discount or better cash generation to call it compelling.

In plain English: American States Water sells water and electricity to homes and businesses through regulated utility subsidiaries. The business looks steady and profitable, with demand that does not disappear, but it uses a fair amount of debt and does not generate much spare cash. At the recent price of $82.51, the shares look expensive compared with the company's earnings and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer