What Do Analysts Think About American States Water Company’s (AWR) Future?
American States Water Company (NYSE:AWR) is expected to deliver a low, single-digit 4.09% in earnings growth per share over the next three years. Presently, with an EPS of $1.858, we can expect an upcoming EPS of $1.934. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. Check out our latest analysis for American States Water
Exciting times ahead?
Analyst expectation from the stock’s 4 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $1.858 to $1.934 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 4.09% over the next few years. In the same period revenue is expected to increase from $443M to $517M and profits (net income) are predicted to escalate from $68M to $71M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. AWR delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For AWR, I’ve compiled three important factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for AWR’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AWR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
