Previous Close | $77.16 |
AI Value | $22.87 |
Upside potential | -70% |
American States Water Company (AWR) is a publicly traded water and electric utility holding company, primarily serving customers in California through its subsidiaries, Golden State Water Company and American States Utility Services. The company operates in a regulated industry, providing essential water and wastewater services to residential, commercial, and industrial customers. AWR's market position is strengthened by its monopoly-like status in its service territories, as utilities are typically granted exclusive rights to operate in specific regions. The company's core business is highly defensive, given the inelastic demand for water services, which provides stable revenue streams. AWR's competitive advantages include its regulated rate structure, which ensures predictable cash flows, and its focus on operational efficiency and infrastructure investment.
Investments in water infrastructure resilience and efficiency, though limited by the regulated nature of the industry.
AWR offers a stable, dividend-paying investment with low volatility due to its regulated utility business. However, growth is constrained by the slow-moving nature of rate approvals and California's regulatory environment. The stock is suitable for income-focused investors seeking defensive exposure, though upside potential is limited compared to higher-growth sectors. Key risks include regulatory hurdles and climate-related operational challenges.
SEC filings (10-K, 10-Q), California Public Utilities Commission (CPUC) documents, company investor presentations.
Historical valuation data is not available at this time.