Avista Corporation (AVA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Avista Corporation (AVA) Utility Operations & Dividend Profile

Avista Corporation (AVA) is a diversified utility company delivering electricity and natural gas in the Northwestern U.S. and Alaska. With a focus on regulated operations, Avista serves over 778,000 customers through its Avista Utilities and AEL&P segments, emphasizing reliable service and strategic investments in energy infrastructure.

What Is the Investment Thesis for AVA?

Avista Corporation presents a stable investment opportunity within the utilities sector, driven by its regulated business model and consistent dividend yield of 4.81%. The company's diversified operations across electricity and natural gas, coupled with its presence in multiple states, provide a degree of resilience against regional economic fluctuations. Key growth catalysts include infrastructure investments and regulatory approvals for rate adjustments. However, potential risks include regulatory challenges, fluctuations in energy prices, and the impact of environmental regulations. With a P/E ratio of 13.36 and a profit margin of 10.7%, Avista demonstrates reasonable profitability within the utility sector. Investors should monitor regulatory developments and operational efficiency to assess the company's long-term value.

Based on FMP financials and quantitative analysis

AVA Key Highlights

Market capitalization of $3.11B, reflecting a substantial presence in the utility sector.

• P/E ratio of 13.36, indicating a potentially reasonable valuation compared to earnings.
• Dividend yield of 4.81%, offering a significant income stream for investors.
• Profit margin of 10.7%, showcasing the company's ability to generate profit from its operations.
• Beta of 0.21, suggesting lower volatility compared to the broader market, typical for utility stocks.

Who Are AVA's Competitors?

AVA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AVA's Key Strengths?

Regulated utility operations provide stable cash flow.

• Diversified energy generation sources.
• Established infrastructure network.
• Geographic presence in multiple states.

What Are AVA's Weaknesses?

Exposure to regulatory risks.

• Dependence on weather conditions.
• Capital-intensive operations.
• Vulnerability to fluctuations in energy prices.

What Could Drive AVA Stock Higher?

Regulatory approvals for rate adjustments in Washington, Idaho, and Oregon.

• Investments in renewable energy projects to meet state mandates.
• Infrastructure modernization projects to improve grid reliability.
• Expansion of electric vehicle charging infrastructure.

What Are the Key Risks for AVA?

Financial-distress signal — its Altman Z-Score of 0.86 sits in the distress zone (elevated bankruptcy risk).

• Changes in regulatory policies impacting rate structures and investment returns.
• Fluctuations in natural gas and electricity prices.
• Environmental regulations increasing compliance costs.
• Economic downturns reducing energy demand.
• Wildfires impacting infrastructure and operations.

What Are the Growth Opportunities for AVA?

• Expansion of Renewable Energy Portfolio: Avista can capitalize on the growing demand for renewable energy by investing in new wind, solar, and hydroelectric projects. The market for renewable energy is projected to grow significantly, driven by government incentives and corporate sustainability goals. By expanding its renewable energy portfolio, Avista can attract environmentally conscious customers and reduce its carbon footprint. Timeline: Ongoing.
• Infrastructure Modernization: Upgrading existing infrastructure, including transmission lines and distribution networks, presents a significant growth opportunity. Modernizing infrastructure improves reliability, reduces energy losses, and enhances grid resilience. This can lead to increased efficiency and cost savings. The market for grid modernization is substantial, driven by the need to replace aging infrastructure and integrate new technologies. Timeline: Ongoing.
• Strategic Acquisitions: Avista can pursue strategic acquisitions of smaller utility companies or energy-related businesses to expand its geographic footprint and service offerings. Acquisitions can provide access to new markets, customers, and technologies. Careful due diligence and integration are essential for successful acquisitions. Timeline: Ongoing.
• Smart Grid Technologies: Implementing smart grid technologies, such as advanced metering infrastructure (AMI) and demand response programs, can improve energy efficiency and customer engagement. Smart grids enable real-time monitoring of energy consumption, allowing customers to better manage their energy usage and reduce costs. The market for smart grid technologies is growing rapidly, driven by the need to improve grid reliability and efficiency. Timeline: Ongoing.
• Electric Vehicle (EV) Infrastructure: Investing in EV charging infrastructure can capitalize on the growing adoption of electric vehicles. As more consumers switch to EVs, the demand for charging stations will increase. Avista can partner with businesses and municipalities to install charging stations in strategic locations. This can generate new revenue streams and support the transition to a cleaner transportation system. Timeline: Ongoing.

What Are AVA's Competitive Advantages?

• Regulated utility status provides a barrier to entry.
• Geographic presence in key markets.
• Diversified energy generation sources.
• Established infrastructure network.

What Does AVA Do?

Avista Corporation, incorporated in 1889 and headquartered in Spokane, Washington, operates as an electric and natural gas utility company. The company's history is rooted in the development of hydroelectric power in the Pacific Northwest. It has evolved from a local energy provider to a diversified utility serving customers across multiple states. Avista operates through two primary segments: Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, as well as natural gas distribution services, to customers in eastern Washington, northern Idaho, northeastern and southwestern Oregon, and generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services to approximately 17,400 customers in Juneau, Alaska. Avista generates electricity through a mix of hydroelectric, thermal, and wind facilities, reflecting a commitment to diverse energy sources. As of February 2022, Avista served 406,000 electric customers and 372,000 natural gas customers. In addition to its utility operations, Avista engages in venture fund investments, real estate investments, and other strategic investments to diversify its portfolio and enhance long-term growth.

What Products and Services Does AVA Offer?

• Provides electric distribution and transmission services.
• Offers natural gas distribution services.
• Generates electricity through hydroelectric, thermal, and wind facilities.
• Engages in the wholesale purchase and sale of electricity and natural gas.
• Offers electric services to customers in Juneau, Alaska.
• Invests in venture funds, real estate, and other strategic opportunities.

How Does AVA Make Money?

• Regulated utility operations provide a stable revenue stream.
• Electricity generation and distribution.
• Natural gas distribution.
• Wholesale energy trading.

What Industry Does AVA Operate In?

Avista Corporation operates within the diversified utilities industry, which is characterized by stable demand and regulated pricing. The industry is undergoing a transition towards cleaner energy sources, driven by environmental regulations and consumer preferences. Companies like Avista are investing in renewable energy infrastructure to meet these demands. The competitive landscape includes other regional utilities such as Northwestern Energy Group Inc (NWE) and ALLETE, Inc (ALE), each vying for market share within their respective service territories. The industry is also influenced by factors such as interest rates, economic growth, and regulatory policies.

Who Are AVA's Key Customers?

• Residential customers.
• Commercial customers.
• Industrial customers.
• Customers in eastern Washington, northern Idaho, northeastern and southwestern Oregon, and Juneau, Alaska.

Company Profile

Avista Corporation operates in the Diversified Utilities industry within the Utilities sector. It is headquartered in Spokane, US. The company is led by CEO Heather Lynn Rosentrater. AVA has traded publicly since 1981.

Avista Corporation Financial Trajectory

Avista Corporation (AVA) reported $413.0M in revenue for Jun 2026, a decline of 27.5% compared to the prior quarter. The company recorded net income of $35.0M, with diluted EPS of $0.42. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, AVA averaged $0.69 in diluted EPS.

How Avista Corporation Is Valued

Avista Corporation carries a market capitalization of $3.11B, placing it in the mid-cap category. Analyst price targets span from $37.00 to $39.00, with a consensus of $38.00. At the current price of $37.13, that implies approximately 2% upside potential. Relative to its peer group, AVA's quantitative score of 52/100 is below the peer average of 69/100.

Return on equity for Avista Corporation stands at 7.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.5%, showing how much profit it generates from its asset base. AVA trades at a trailing price-to-earnings ratio of 13.36, below the Utilities sector average of ~16.60x. Its free cash flow yield is 11.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.90 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.9%, the inverse of the P/E and a quick read on earnings relative to price.

Avista Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.86 places it in the distress zone, a signal of elevated financial risk.

Avista Corporation has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 17.8% above estimates on average.

Wall Street analysts project Avista Corporation revenue of about $1.99B for fiscal 2026, with EPS near $2.60. The estimate reflects 3 contributing analysts.

Over the past six months, Avista Corporation insiders filed 28 SEC Form 4 transactions — 8 sales and 20 purchases. On net that is roughly 26K shares acquired (about $1.1M) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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