I don't know, but here are the stats (from yahoo):
forward PE looks ok, put PEG is much higher then Cramer says he likes.
Forward P/E (fye Dec 31, 2014)1: 17.24
PEG Ratio (5 yr expected)1: 2.31
Return on equity only 8.6%.
Current Ratio very risky at 0.50, too much debt, poor balance sheet.
Divy is nice at 2.5% and the payout ratio at 60% is a little high but not too bad.
IBD rates the stock at 70. Mostly this high on stock momentum.
I like the idea that the world needs water and the infrastructure companies will do well in order to keep are supply, but Ive seen these stocks get crushed before in a stock market correction. Is this the time for the water stocks to shine? Maybe, but be cautious.
I bought AWR yesterday on the 3% pullback, hoping for a bounce, maybe today. It's cheaper than AWK
and WTR. Fast Money picked WTR, Cramer picked AWK. Sectors usually move together. I would feel
safer in AWK though, it doesn't drop as much as the other two.
The Cramer pump really only effects speculative stocks, beaten down, or highly shorted stocks, although getting a "buy, buy, buy" from him is always a good thing. AWK is a best in breed, and great core holding for any portfolio. A lot of investors are looking for an alternative to a money market fund that pays close to zero, and AWK is about as perfect for conservative investors as it gets. Look at the five year chart, pretty incredible upward growth with little volatility. I usually add on the dips in AWK if you are lucky to get one, they do not happen often. Anyway, my point is this is not a trading stock that gets pumped or dumped-- just a best in breed company with awesome growth drivers, smart management, and respectable dividend. Even on a valuation basis it is not that expensive compared to some of the other blue chips out there. Not very often you find companies that fill the bill of buy, hold, and forget, until you need your money years down the road-- but AWK does just that.
I agree with everything you said. This wasn't by any means a bargain to get in, but the fact is that it grows steadily and offers a decent dividend. I plan on keeping this forever, unless it ever becomes absurdly overvalued of course.
I am also thinking that growth might be possible because of future environmental issues with water. Perhaps the idea of "blue gold" is hype, but because water is such a critical commodity is exactly why I invested here.