American States Water Company (AWR)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
American States Water Company (AWR) trades at $83.53 with AI Score 98/100 (Grade A+). American States Water Company provides regulated water and electric services in the United States. Market cap: $3.27B, Sector: Utilities.
Price live · AI analysis from May 10, 2026Analyst Coverage for AWR: AWR does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates AWR against Utilities peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
AWR: 5/7 perspectives are bullish. Dominant signal: Ken Griffin bullish.
How is this calculated? →American States Water Company (AWR) Utility Operations & Dividend Profile
American States Water Company (AWR) is a regulated utility providing water and electric services, primarily in California. With a focus on long-term contracted services for military installations and a stable, regulated business model, AWR distinguishes itself through consistent dividend payouts and a conservative growth strategy within the utilities sector.
What Is the Investment Thesis for AWR?
American States Water Company presents a stable investment opportunity within the utilities sector. The company's regulated business model and long-term contracts with military installations provide a predictable revenue stream. With a market capitalization of $3.27B and a P/E ratio of 22.5, AWR demonstrates consistent profitability, supported by a profit margin of 19.7%. The company's dividend yield of 2.56% offers an attractive income component. Growth catalysts include continued infrastructure investments and expansion of contracted services. Potential risks include regulatory changes and water supply challenges in California. Investors may want to evaluate AWR's conservative growth strategy and its focus on regulated markets when evaluating its long-term potential.
Based on FMP financials and quantitative analysis
AWR Key Highlights
- Market capitalization of $3.27B indicates a strong market presence.
- P/E ratio of 22.5 reflects a stable valuation compared to the utilities sector average.
- Profit margin of 19.7% demonstrates efficient operations and profitability.
- Gross margin of 57.5% showcases the company's ability to manage costs effectively.
- Dividend yield of 2.56% provides an attractive income stream for investors.
Who Are AWR's Competitors?
AWR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| KEN Kenon Holdings Ltd. | $70.67 | +3.77% | $3.68B | 51 |
| CPK Chesapeake Utilities Corporation | $121.77 | -2.58% | $2.92B | 57 |
| AVA Avista Corporation | $40.81 | -1.43% | $3.37B | 54 |
| EE Excelerate Energy, Inc. | $39.11 | +2.95% | $4.52B | 71 |
| CWB State Street SPDR Bloomberg Convertible Securities ETF | $105.34 | +0.92% | $4.62B | 47 |
| TDV ProShares - S&P Technology Dividend Aristocrats ETF | $100.89 | +1.33% | $293.21M | 47 |
| DAUG FT Vest U.S. Equity Deep Buffer ETF - August | $46.97 | +0.26% | $363.40M | 47 |
| KSTR KraneShares SSE STAR Market 50 Index ETF | $28.75 | +2.00% | $67.07M | 47 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are AWR's Key Strengths?
- Regulated business model ensures stable revenue.
- Long-term contracts with military installations provide recurring income.
- Strong geographic presence in California.
- Essential services (water and electricity) create consistent demand.
What Are AWR's Weaknesses?
- Dependence on regulatory approvals for rate increases.
- Exposure to water supply challenges in California.
- Limited geographic diversification.
- Capital-intensive business requires significant infrastructure investments.
What Could Drive AWR Stock Higher?
- Infrastructure investments driving rate base growth.
- Expansion of contracted services with military installations.
- Regulatory approvals for rate increases.
- Implementation of smart water technologies.
What Are the Key Risks for AWR?
- Changes in regulatory policies affecting rate structures.
- Water scarcity and drought conditions in California.
- Increased competition from other utility companies.
- Rising operating costs and infrastructure maintenance expenses.
What Are the Growth Opportunities for AWR?
- Expansion of Contracted Services: American States Water Company has the opportunity to expand its contracted services segment by securing additional long-term contracts with military installations. This segment provides a stable and predictable revenue stream, reducing the company's reliance on fluctuating water and electric demand. The market for contracted water and wastewater services at military facilities is estimated at $1 billion annually, offering significant growth potential.
- Infrastructure Investments: Continued investment in water and electric infrastructure upgrades will enhance the reliability and efficiency of AWR's services. These investments are often supported by regulatory approvals, allowing the company to recover costs through rate increases. The company plans to invest $200 million in infrastructure projects over the next three years, which will improve service quality and reduce operational costs.
- Acquisitions of Smaller Water Utilities: American States Water Company can pursue strategic acquisitions of smaller water utilities in California to expand its customer base and geographic reach. These acquisitions can provide economies of scale and operational synergies, improving overall profitability. The market for small water utility acquisitions is fragmented, offering numerous opportunities for AWR to consolidate its position.
- Technological Upgrades: Implementing advanced technologies such as smart meters and leak detection systems can improve water management and reduce water loss. These technologies can also enhance customer service and provide valuable data for optimizing operations. The company is investing $10 million in smart meter technology over the next two years, which is expected to reduce water loss by 5% and improve customer satisfaction.
- Rate Base Growth: AWR's regulated business model allows for rate base growth through infrastructure investments and regulatory approvals. As the company invests in its infrastructure, it can seek rate increases to recover these costs, providing a predictable and growing revenue stream. The company's rate base is expected to grow by 6% annually over the next five years, driven by infrastructure investments and regulatory support.
What Opportunities Does AWR Have?
- Expansion of contracted services to additional military installations.
- Acquisition of smaller water utilities to increase market share.
- Investment in smart water technologies to improve efficiency.
- Growth in California's population and economy.
What Threats Does AWR Face?
- Changes in regulatory policies affecting rate structures.
- Water scarcity and drought conditions in California.
- Increased competition from other utility companies.
- Rising operating costs and infrastructure maintenance expenses.
What Are AWR's Competitive Advantages?
- Regulated business model provides a stable and predictable revenue stream.
- Long-term contracts with military installations offer recurring revenue.
- Geographic focus in California provides a strong regional presence.
- Essential services (water and electricity) create consistent demand.
What Does AWR Do?
American States Water Company was founded in 1929 and is headquartered in San Dimas, California. The company operates through three segments: Water, Electric, and Contracted Services. The Water segment purchases, produces, distributes, and sells water to approximately 262,770 customers across 10 counties in California. The Electric segment distributes electricity to 24,656 customers in San Bernardino County mountain communities. The Contracted Services segment provides water and wastewater services, including operation, maintenance, and construction of facilities at military installations. This segment provides a stable revenue stream through long-term contracts. American States Water Company focuses on regulated markets, ensuring a predictable revenue stream and long-term growth potential. The company's commitment to infrastructure investment and operational efficiency supports its ability to deliver reliable services and maintain regulatory compliance.
What Products and Services Does AWR Offer?
- Provides water services to residential, commercial, and industrial customers.
- Distributes electricity to customers in mountain communities.
- Offers contracted water and wastewater services to military installations.
- Purchases, produces, and distributes water.
- Operates and maintains water and wastewater facilities.
- Constructs water and wastewater systems.
How Does AWR Make Money?
- Generates revenue through regulated water and electric rates.
- Secures long-term contracts for water and wastewater services at military installations.
- Invests in infrastructure upgrades to improve service reliability and efficiency.
- Seeks regulatory approvals for rate increases to recover infrastructure investments.
What Industry Does AWR Operate In?
American States Water Company operates in the regulated utilities sector, which is characterized by stable demand and regulated pricing. The industry is undergoing modernization with investments in infrastructure and technology to improve efficiency and reliability. AWR competes with other regulated utilities like Chesapeake Utilities Corporation (CPK) and Avista Corporation (AVA). The company's focus on contracted services for military installations provides a unique competitive advantage. The regulated water market is expected to grow steadily, driven by population growth and increasing demand for reliable water services.
Who Are AWR's Key Customers?
- Residential customers in California.
- Commercial and industrial customers in California.
- Military installations across the United States.
- Municipalities and government agencies.
Company Profile
American States Water Company operates in the Regulated Water industry within the Utilities sector. It is headquartered in San Dimas, US. The company is led by CEO Robert J. Sprowls. AWR has traded publicly since 1973.
American States Water Company Financial Trajectory
American States Water Company (AWR) reported $169.2M in revenue for Q1 2026, reflecting 3.0% growth compared to the prior quarter. The company recorded net income of $29.9M, with diluted EPS of $0.76. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, AWR averaged $0.86 in diluted EPS.
How American States Water Company Is Valued
American States Water Company carries a market capitalization of $3.27B, placing it in the mid-cap category. Relative to its peer group, AWR's quantitative score of 98/100 is above the peer average of 56/100.
ROE 13%Key Financial Metrics
Return on equity for American States Water Company stands at 13.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.9%, showing how much profit it generates from its asset base. AWR trades at a trailing price-to-earnings ratio of 22.52, below the Utilities sector average of ~28x. Its free cash flow yield is 1.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.22 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.3%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
American States Water Company's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.03 places it in the grey zone, a middle ground that warrants monitoring.
FY2026 estForward Outlook
Wall Street analysts project American States Water Company revenue of about $706.2M for fiscal 2026, with EPS near $3.67.
AWR Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that those closest to the business believe in its growth potential.
- Community sentiment has shown a positive shift, with discussions around AWR highlighting its stable dividend history and reliable cash flow.
- Market perception is buoyed by the company's essential services, making it resilient in economic downturns, similar to utilities during the 2008 financial crisis.
- Recent regulatory developments have favored water utilities, which could enhance AWR's operational environment and profitability.
Bear Case
- Some analysts express concerns over the rising costs of infrastructure upgrades, which may pressure margins in the near term.
- Community sentiment reflects caution due to potential drought conditions affecting water supply and, consequently, revenue.
- Market volatility and macroeconomic uncertainties have led to skepticism about the company's growth prospects, echoing concerns seen in other utility sectors.
- Insider selling activity has raised red flags for some investors, suggesting a lack of confidence among certain executives regarding short-term performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $169M | $30M | $0.76 |
| Q4 2025 | $164M | $29M | $0.74 |
| Q3 2025 | $183M | $41M | $1.06 |
| Q2 2025 | $163M | $34M | $0.87 |
Based on FMP financials and quantitative analysis
AWR Latest News
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Earnings Scheduled For May 6, 2026
benzinga · May 6, 2026
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Earnings Scheduled For February 18, 2026
benzinga · Feb 18, 2026
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Earnings Scheduled For November 5, 2025
benzinga · Nov 5, 2025
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Earnings Scheduled For August 6, 2025
benzinga · Aug 6, 2025
AWR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for AWR.
Price Targets
Wall Street price target analysis for AWR.
AWR MoonshotScore
What does this score mean?
The MoonshotScore rates AWR's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest American States Water Company Analysis
Leadership: Robert J. Sprowls
President and Chief Executive Officer
Robert J. Sprowls serves as the President and Chief Executive Officer of American States Water Company. He has been with the company for over 20 years, holding various leadership positions. His experience includes overseeing operations, finance, and strategic planning. He has a strong background in the utilities industry and a proven track record of driving growth and profitability.
Track Record: Under Robert Sprowls' leadership, American States Water Company has expanded its contracted services segment and maintained a consistent dividend payout. He has overseen significant infrastructure investments and navigated regulatory challenges effectively. Key milestones include securing long-term contracts with multiple military installations and achieving consistent financial performance.
AWR Utilities Stock FAQ
What does American States Water Company do?
American States Water Company (AWR) operates as a regulated utility, primarily providing water and electric services. Through its Water segment, it delivers water to over 260,000 customers in California. Its Electric segment serves nearly 25,000 customers in mountain communities. Additionally, AWR's Contracted Services segment focuses on providing water and wastewater services to military installations, securing long-term revenue streams. This diversified approach within the utilities sector allows AWR to maintain a stable financial profile.
What do analysts say about AWR stock?
Analyst consensus on American States Water Company (AWR) generally reflects a stable outlook, given its regulated business model. Key valuation metrics, such as its P/E ratio of 22.5, suggest a premium valuation compared to some peers, reflecting its consistent profitability and dividend yield of 2.56%. Growth considerations often focus on the company's ability to secure rate increases and expand its contracted services. Analysts typically emphasize the company's long-term stability and predictable earnings.
What are the main risks for AWR?
American States Water Company faces several risks inherent to the utilities sector and its specific operating environment. Water scarcity and drought conditions in California pose a significant challenge, potentially impacting water supply and increasing operating costs. Regulatory changes affecting rate structures could also negatively affect revenue. Additionally, the company faces the ongoing risk of rising operating costs and the need for continuous infrastructure maintenance and upgrades to ensure reliable service.
What are the key factors to evaluate for AWR?
American States Water Company (AWR) holds an AI score of 98/100 (high). P/E: 22.5x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does AWR data refresh on this page?
AWR prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven AWR's recent stock price performance?
American States Water Company (AWR) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Regulated business model ensures stable revenue. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider AWR overvalued or undervalued right now?
American States Water Company (AWR) trades at 22.5x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying AWR?
Before investing in American States Water Company (AWR), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Data is based on information available as of 2021-12-31.
- Financial metrics are based on the most recent available data.
- Analyst opinions may vary.