American States Water Company (AWR) AI Stock Analysis

American States Water Company, through its subsidiaries, delivers water and electric services to residential, commercial, industrial, and other customers across the United States. The company operates through three primary segments: Water, Electric, and Contracted Services. It is involved in the purchasing, production, distribution, and sale of water, as well as the distribution of electricity. By December 31, 2021, the company provided water services to 262,770 customers across 10 counties in California and distributed electricity to 24,656 customers in San Bernardino County mountain communities. Its Contracted Services segment provides water and wastewater services.

Between FY2020 and FY2025, American States Water delivered a five-year revenue compound annual growth rate of 6.2%. Revenue rose from $498.9M in FY2021 to $658.1M in FY2025, reflecting a 10.5% increase in FY2025. Gross margin contracted to 50.8% in FY2025 from 75.9% in FY2024, while operating margin remained stable at 30.9%. Net income grew to $130.4M with EPS of $3.37 in FY2025. For the trailing twelve months ending June 30, 2026, revenue stood at $697.5M and EPS was $3.65. In the latest quarter, quarterly revenue grew 11.2% year-over-year, and quarterly earnings expanded 25.8%.

As of June 30, 2026, American States Water held $21.7M in cash and short-term investments against $798.5M in total debt, resulting in net debt of $776.8M. Shareholders' equity was $1.12B, producing a debt-to-equity ratio of 0.71 and a current ratio of 0.98. In FY2025, the company generated $229.7M in operating cash flow while allocating $236.8M to capital expenditures, leading to free cash flow of -$7.1M. Cash distributions included $74.7M in dividends paid, supported by $67.1M from share issuance.

American States Water trades at an enterprise value of $4.20B and a market cap of $3.31B. Its trailing price-to-earnings ratio is 22.9x, and its forward ratio is 22.1x, both higher than the median of its US-listed Utilities peers of 20.6x and 17.2x. The company's price-to-sales of 4.7x and EV-to-EBITDA of 14.7x also exceed the peer medians of 2.4x and 12.1x. Over the past year, AWR returned 13.8% compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock advanced 3.5%, trailing the S&P 500 return of 83.0%.

The company pays a forward annual dividend of $2.18 per share, which translates to a 2.61% dividend yield. Dividends have been paid for 42 consecutive years, with an annualized 5-year dividend growth rate of 8.7%. The payout ratio stands at 56.4% on a quarterly payment schedule, with the most recent ex-dividend date on August 17, 2026.

Covering analysts hold 2 Hold ratings and 1 Sell rating, with no Buy or Strong Buy recommendations. The mean price target is $84.00, representing a 0.7% premium over the last close of $83.45. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $3.68 on revenue of $708.8M. Over the last four quarters, the company beat EPS estimates in 3 periods. The next earnings date is November 4, 2026.

This page is an AI-written research summary of American States Water Company (AWR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AWR income statement, AWR balance sheet, AWR key metrics, AWR analyst forecast, AWR chart. See the AWR stock overview for the latest quote and news.