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American States Water Company (AWR)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$79.81 - $213.04$122.27
Multi-Stage$56.53 - $61.65$59.05
Blended Fair Value$90.66
Current Price$73.32
Upside23.65%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.43%7.63%1.741.591.471.341.231.111.010.950.870.85
YoY Growth--9.51%8.59%9.03%9.50%10.55%9.67%6.92%9.01%2.20%1.80%
Dividend Yield--2.22%2.22%1.65%1.51%1.62%1.36%1.44%1.79%1.96%2.16%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)130.14
(-) Cash Dividends Paid (M)72.73
(=) Cash Retained (M)57.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.0316.279.76
Cash Retained (M)57.4157.4157.41
(-) Cash Required (M)-26.03-16.27-9.76
(=) Excess Retained (M)31.3841.1447.65
(/) Shares Outstanding (M)38.4438.4438.44
(=) Excess Retained per Share0.821.071.24
LTM Dividend per Share1.891.891.89
(+) Excess Retained per Share0.821.071.24
(=) Adjusted Dividend2.712.963.13
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$79.81$122.27$213.04
Upside / Downside8.85%66.76%190.57%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)130.14138.59147.60157.20167.42178.30183.65
Payout Ratio55.89%62.71%69.53%76.35%83.18%90.00%92.50%
Projected Dividends (M)72.7386.91102.63120.03139.25160.47169.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)78.9379.6880.43
Year 2 PV (M)84.6486.2687.88
Year 3 PV (M)89.9092.4895.11
Year 4 PV (M)94.7298.36102.11
Year 5 PV (M)99.12103.91108.88
PV of Terminal Value (M)1,725.881,809.241,895.79
Equity Value (M)2,173.192,269.922,370.20
Shares Outstanding (M)38.4438.4438.44
Fair Value$56.53$59.05$61.65
Upside / Downside-22.90%-19.47%-15.91%

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