Latest Ratios: P/E Ratio 24.7x · EV/EBITDA 16.6x · ROE 13.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $2.8B | $2.9B | $3.0B | $3.4B | $3.8B | $2.9B | $3.2B | $2.5B | $2.1B | $1.7B |
| Enterprise Value | $4.2B | $3.7B | $3.8B | $3.9B | $4.2B | $4.5B | $3.5B | $3.7B | $2.9B | $2.5B | $2.1B |
| P/E Ratio → | 24.70 | 21.51 | 24.52 | 23.93 | 43.86 | 40.56 | 34.12 | 38.00 | 38.75 | 30.80 | 28.12 |
| P/S Ratio | 4.96 | 4.26 | 4.91 | 5.01 | 6.97 | 7.67 | 6.02 | 6.76 | 5.67 | 4.84 | 3.84 |
| P/B Ratio | 3.08 | 2.68 | 3.17 | 3.84 | 4.83 | 5.58 | 4.58 | 5.32 | 2.95 | 4.03 | 2.05 |
| P/FCF | — | — | — | — | — | — | — | — | 242.45 | 67.89 | — |
| P/OCF | 14.20 | 12.20 | 14.70 | 44.05 | 29.10 | 33.12 | 24.08 | 27.40 | 18.10 | 14.76 | 17.27 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.66 | 6.44 | 6.52 | 8.46 | 8.93 | 7.15 | 7.81 | 6.61 | 5.71 | 4.78 |
| EV / EBITDA | 16.60 | 14.78 | 16.76 | 16.19 | 24.69 | 24.61 | 20.82 | 22.74 | 20.37 | 15.11 | 13.56 |
| EV / EBIT | 20.59 | 17.21 | 19.18 | 18.57 | 32.20 | 30.16 | 25.46 | 27.70 | 27.71 | 20.93 | 18.11 |
| EV / FCF | — | — | — | — | — | — | — | — | 282.58 | 79.99 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 50.8% | 50.8% | 75.9% | 75.5% | 74.9% | 75.7% | 75.5% | 74.6% | 75.1% | 76.5% | 76.4% |
| Operating Margin | 30.9% | 30.9% | 31.0% | 33.0% | 25.8% | 28.3% | 26.7% | 26.8% | 23.1% | 28.8% | 26.3% |
| Net Profit Margin | 19.8% | 19.8% | 20.0% | 21.0% | 15.9% | 18.9% | 17.7% | 17.8% | 14.6% | 15.7% | 13.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.3% | 13.3% | 14.1% | 16.8% | 11.2% | 14.2% | 13.9% | 11.7% | 9.3% | 10.3% | 7.4% |
| ROA | 5.0% | 5.0% | 5.0% | 5.8% | 4.0% | 5.1% | 5.0% | 5.4% | 4.4% | 4.8% | 4.2% |
| ROIC | 8.0% | 8.0% | 7.9% | 9.5% | 6.9% | 8.5% | 8.5% | 8.1% | 7.0% | 8.9% | 7.3% |
| ROCE | 8.5% | 8.5% | 8.6% | 10.6% | 7.5% | 8.2% | 8.2% | 8.8% | 7.7% | 10.0% | 9.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.90 | 0.90 | 1.02 | 1.18 | 1.04 | 0.92 | 0.91 | 0.83 | 0.50 | 0.72 | 0.50 |
| Debt / EBITDA | 3.74 | 3.74 | 4.10 | 3.82 | 4.36 | 3.48 | 3.50 | 3.07 | 2.94 | 2.29 | 2.67 |
| Net Debt / Equity | — | 0.88 | 0.99 | 1.16 | 1.03 | 0.91 | 0.86 | 0.83 | 0.49 | 0.72 | 0.50 |
| Net Debt / EBITDA | 3.66 | 3.66 | 3.99 | 3.77 | 4.33 | 3.45 | 3.28 | 3.06 | 2.89 | 2.29 | 2.67 |
| Debt / FCF | — | — | — | — | — | — | — | — | 40.12 | 12.10 | — |
| Interest Coverage | 4.63 | 4.63 | 3.97 | 4.89 | 4.78 | 6.46 | 6.09 | 5.43 | 4.44 | 5.32 | 5.24 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 0.82 | 1.24 | 0.38 | 0.89 | 1.33 | 1.06 | 0.90 | 0.99 | 0.94 |
| Quick Ratio | 1.23 | 1.23 | 0.76 | 1.13 | 0.34 | 0.81 | 1.25 | 1.00 | 0.86 | 0.96 | 0.91 |
| Cash Ratio | 0.11 | 0.11 | 0.09 | 0.08 | 0.02 | 0.03 | 0.31 | 0.01 | 0.05 | 0.00 | 0.00 |
| Asset Turnover | — | 0.24 | 0.24 | 0.27 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.31 | 0.30 |
| Inventory Turnover | 19.75 | 19.75 | 9.47 | 8.32 | 8.43 | 9.95 | 13.85 | 18.69 | 18.86 | 21.57 | 23.93 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.7% | 2.3% | 2.1% | 1.6% | 1.4% | 1.6% | 1.3% | 1.6% | 1.7% | 2.0% |
| Payout Ratio | 57.2% | 57.2% | 56.2% | 49.0% | 71.9% | 54.8% | 54.6% | 50.6% | 61.0% | 52.5% | 55.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 4.6% | 4.1% | 4.2% | 2.3% | 2.5% | 2.9% | 2.6% | 2.6% | 3.2% | 3.6% |
| FCF Yield | — | — | — | — | — | — | — | — | 0.4% | 1.5% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.3% | 2.7% | 2.3% | 2.1% | 1.6% | 1.4% | 1.6% | 1.3% | 1.6% | 1.7% | 2.0% |
| Shares Outstanding | — | $39M | $38M | $37M | $37M | $37M | $37M | $37M | $37M | $37M | $37M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AWR stock.
American States Water Company's current P/E ratio is 24.7x. The historical average is 25.3x. This places it at the 60th percentile of its historical range.
American States Water Company's current EV/EBITDA is 16.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
American States Water Company's return on equity (ROE) is 13.3%. The historical average is 10.0%.
Based on historical data, American States Water Company is trading at a P/E of 24.7x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American States Water Company's current dividend yield is 2.32% with a payout ratio of 57.2%.
American States Water Company has 50.8% gross margin and 30.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
American States Water Company's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
California wildfire and PFAS exposure
Metrics are mathematically derived from official filings.
Premium Pricing Reflects Safety Bid
AWR trades at 26.3x trailing earnings versus 23.3x for CWT, as per market data, with a 2.2% dividend yield that appears to price in a flight-to-safety premium beyond its growth profile.
The P/E premium over peers like CWT and MSEX suggests the market is paying for AWR's 70-year dividend streak and perceived regulatory stability, not just its rate base growth. With a forward P/E of 24.4x and a PEG of 3.4, the valuation implies expectations of sustained earnings growth that may be difficult to achieve given the CPUC's allowed ROE constraints. The dividend yield of 2.2% is below the peer average of 2.8%, indicating that income investors are accepting a lower yield in exchange for perceived safety, which could unwind if interest rates rise or regulatory outcomes disappoint.
Earned ROE Exceeds Authorized Levels
Q2 2026 ROE of 4.0% annualizes to roughly 16%, as per financial statements, well above the typical CPUC authorized ROE of 10-11%, suggesting AWR is earning above its allowed return.
The quarterly ROE figures, when annualized, indicate that AWR is earning returns significantly above the authorized ROE set by the CPUC, which may be unsustainable over the long term. This outperformance likely stems from the ASUS segment's non-regulated contracts and efficient cost management, but it also raises the risk of regulatory scrutiny or rate case adjustments. Investors should monitor whether the CPUC challenges these returns in future cost of capital proceedings, as a downward revision to the allowed ROE could compress earnings power.
Margin Expansion Signals Efficient Recovery
Operating margin improved to 35.3% in Q2 2026 from 31.3% a year earlier, as reported in financial statements, indicating effective cost recovery mechanisms and operational efficiency.
The expansion in operating margin suggests that AWR is benefiting from regulatory mechanisms like WRAM and MCBA that allow timely recovery of costs, as well as from the higher-margin ASUS segment. However, the fixed-price nature of ASUS contracts introduces risk of cost overruns, which could compress margins if inflation persists. The net margin of 23.9% in Q2 2026 is particularly strong, but investors should be cautious about extrapolating this level given the potential for regulatory lag and one-time items.
Deleveraging Trend Enhances Credit Profile
Debt-to-capital declined to 0.42 in Q2 2026 from 0.54 in Q1 2024, as per balance sheet data, while interest coverage improved to 4.84x, indicating a strengthening balance sheet.
The consistent reduction in leverage, coupled with improving interest coverage, suggests that AWR is deleveraging, which may be a deliberate strategy to maintain credit ratings and financial flexibility. However, the current ratio fell to 0.98 in Q2 2026, indicating potential short-term liquidity strain, which could be a concern if capital expenditures accelerate. The FFO-to-debt ratio of 6.3% is low compared to investment-grade norms, but this may be due to the capital-intensive nature of the business and the timing of rate recovery.
Dividend Coverage Remains Robust
Dividend payout ratio averaged 58% over the last four quarters, as per financial statements, with operating cash flow covering dividends by 3.0 times, indicating a sustainable dividend.
The payout ratio, while fluctuating seasonally, remains within a sustainable range, and the strong cash flow coverage suggests that AWR can continue its dividend growth streak without straining its balance sheet. However, the capital expenditure program consumes a significant portion of operating cash flow, and if capex increases or cash flows weaken, the dividend may become less secure. The company's ability to fund its growth internally is critical, and the negative free cash flow in recent quarters highlights the reliance on external financing.
Misapplied P/E Ignores Regulatory Lag
Comparing AWR's P/E to industrial companies obscures the impact of regulatory lag and the ASUS segment's fixed-price risk, as per financial analysis, which can distort earnings quality.
The most commonly misapplied ratio for AWR is the P/E ratio, which is often compared to the broader market or industrial companies. This comparison fails to account for the regulatory framework that caps returns and introduces timing lags between capital investment and rate recovery. Additionally, the ASUS segment's percentage-of-completion accounting can create lumpy earnings that do not reflect the underlying utility operations. Investors should instead focus on metrics like earned ROE relative to authorized ROE, and cash flow-based measures such as FFO-to-debt, to better assess AWR's financial health and valuation.