NYSE:WTR
$16.92
(3/15 6:40PM)
+0.2%
| Open | $16.91 |
Mkt Cap | $2.3 Billion |
| High | $17 |
52Wk High | $20.37 |
| Low | $16.75 |
52Wk Low | $15.39 |
| Volume | 367,123 |
Avg Vol 10D | 718,000 |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
WTR Revenue
As a value investing shop, we are interested in seeing how WTR's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 6.12x and the low end of the range at 4.07x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for WTR of 3.44x is well below its normal historic Price to Sales levels. At a price of $16.88, WTR is 33% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
WTR Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently WTR is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for WTR, the current level of Cash Earnings compared to its historical levels helps identify where WTR is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 19.40 and a historical low Cash Earnings per share ratio of 12.89, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for WTR? From the Ockham perspective, we are looking specifically at WTR to see if the market is recognizing the huge disparity between WTR's past stock price to Cash Earnings ratio to today's levels. At a difference of 35% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at WTR. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
WTR Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from WTR against the historic high and low levels over an available data range. Because WTR has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In WTR’s case, the estimated annual dividend is $0.58 producing a current dividend yield of 3.44%. The highest dividend yield from WTR in recent history was 4.18% while the lowest dividend yield was 1.37%. If you are looking for some “bang for your buck” then a dividend yield of 23.96% above the historical median should be enticing. WTR receives a positive boost in our view because as you know, equity at its core is simply a claim on future dividends.
Aqua America Inc (WTR) Discussed on CNBC's Mad Money
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Pull the trigger. Michael in illinois. Michael. >> caller: big boo-yah, jim. >> caller: hey, my stock is a water utility. It's AQUA AMERICA. Symbol wtr. >> man, this stock has done nothing. It has done nothing at all. I would rather invest in a very low-risk cd than this. There will be a better return. I don't want you to own this it has been a disappointment and a disappointment for years. Let's go to john in new york. >> caller: hey, jim.
“… isk cd than this. There will be a better return. I don't want you to own this it has been a disappointment and a disappointment for years. Let's go to john in new york. >> caller: hey, jim. …”
Aqua America Inc (WTR) Discussed on Fox Business's Happy Hour
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
For this show for this segment, to be honest with you you said we weren't taking not stimulus money. We are not doing it with free money is e-mail you sent to me. Tell me is that the case. AQUA AMERICA are you getting money direct from the >> we're getting it through tax advantage, and 85% of the money is going through wall street and putting out equity and doing it the old fashion capitalistic way. You are getting tax you are getting if you call tree money through defered taxes. Cody: nick, speak to that a little bit. The term tax subsidy, tax breaks and tax incentives, it getting kicked around as if it is not direct welfare
“… g it through tax advantage, and 85% of the money is going through wall street and putting out equity and doing it the old fashion capitalistic way. You are getting tax you are getting if you call tree money through defered taxes. Cody: nick, speak to that a little bit. The term tax subsidy, tax breaks and tax incentives, it getting kicked around as if it is not direct welfare …”
Aqua America Inc (WTR) Discussed on CNBC's Fast Money
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Inflation hopefully every time. And that's for a lot of our growth comes from. We grow 11% on the top line. Not many companies are saying that today. They're showing bottom line growth through cost cutting. We're showing our bottom line growth through top line growth. >> got to leave it there. From AQUA AMERICA. Is this an interesting stock?2 are there other water company out there to go for bigger play like a general electric? From this network. Not a set-up, by the way. Sfwh the water trade has been hot over the last couple years. There is no substitute for water. People have said it is the petroleum of the next century. You have to be selective. I've gotten burned doing these water trades so i've stepped to the side on them. >>> going to move on for this week and this week only. "fast money" is taking a momentary break to give you plays that could last for five years.
“… line growth. >> got to leave it there. From AQUA AMERICA. Is this an interesting stock?2 are there other water company out there to go for bigger play like a general electric? From this network. Not a set-up, by the way. Sfwh the water trade has been hot over the last couple years. There is no substitute for water. People have said it is the petroleum of the next century. You have to be selective. I've gotten burned doing these water trades so i've stepped to the side on them. >>> going to move on for this week and this week only. "fast money" is taking a momentary break to give you plays that could last for five years. …”
Aqua America Inc (WTR) Discussed on CNBC's Fast Money
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Said it was putting out a value >> they're putting out to eat healthier and value message. Losing weight by eating whole foods. >> that is the health care eat healthy. Diabetes. >> let's move. On AQUA AMERICA drinking water in 13 states reported a 15% drop money going toward is water where you want to be? Joining us on the fast line. Nicholas, it is great to have you with us. >> how are you? >> i'm great. A big drive in your business is customers. You've seen that number drop. You've been very aquisitive. How has that combatted the loss in customers you've seen and have these actually added to your bottom line? >> we increased customers. Mainly through acquisition. There are 50 oors small water company out there. And our competition are some of
“… p money going toward is water where you want to be? Joining us on the fast line. Nicholas, it is great to have you with us. >> how are you? >> i'm great. A big drive in your business is customers. You've seen that number drop. You've been very aquisitive. How has that combatted the loss in customers you've seen and have these actually added to your bottom line? >> we increased customers. Mainly through acquisition. There are 50 oors small water company out there. And our competition are some of …”
Aqua America Inc (WTR) Discussed on CNBC's Closing Bell
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Themselves more than it looks like they're betting on the down >> all right, jon, thanks very good to see you as always. Coming up on "fast money" all the after-hours action on tech giant cisco plus the update from john chambers' conference call. Plus, time to invest in water? Declaring a 7% increase in its dividend yesterday, the ceo of AQUA AMERICA joins "fast money" to discuss the future of the industry. Caruso-cabrera down at the breaking news desk. Michelle, what's up? >> we've got breaking news related to the victims of bernie madoff, bob. They're going to find it probably easier to get some of their money back due to a new change announced by irving picard, who's in charge of liquidating madoff's assets and trying to get the money back to them. Here's the story. If you gave, say, $500,000 to madoff years ago and it built up to $10 million and you put in a claim for $10 million, irving picard has always said, actually, you're only getting back $500,000. And people have disputed that. What he said in the past was i'll give you the 500 grand if you give up your claims for the
“… me to invest in water? Declaring a 7% increase in its dividend yesterday, the ceo of AQUA AMERICA joins "fast money" to discuss the future of the industry. Caruso-cabrera down at the breaking news desk. Michelle, what's up? >> we've got breaking news related to the victims of bernie madoff, bob. They're going to find it probably easier to get some of their money back due to a new change announced by irving picard, who's in charge of liquidating madoff's assets and trying to get the money back to them. Here's the story. If you gave, say, $500,000 to madoff years ago and it built up to $10 million and you put in a claim for $10 million, irving picard has always said, actually, you're only getting back $500,000. And people have disputed that. What he said in the past was i'll give you the 500 grand if you give up your claims for the …”
Aqua America Inc (WTR) Discussed on CNBC's Mad Money
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Charitable trust, stacy in colorado. >> caller: happy monday. >> happy monday to you, states. >> caller: i'm looking to invest in a utility stock and the one i've been looking at is alpha america, wtr. >> keep looking. Not that great growth, not that great yield. What we want out of a utility stock is what we can get from dominion resources at 5.5% or con ed, which is getting a
“… t yield. What we want out of a utility stock is what we can get from dominion resources at 5.5% or con ed, which is getting a …”
Aqua America Inc (WTR) Discussed on CNBC's Squawk On The Street
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
Want to call, the epa says they need $2 50 million by the time your 20th anniversary rolls around again, private estimates up to $1 trillion. Helps them. >> now, aqua, wtr, AQUA AMERICA is a utility? Doing that instead of the desalination? Other ways to do it. >> exactly. >> what is your 20-year trade? >> we want to be in front of big
“… o it. >> exactly. >> what is your 20-year trade? >> we want to be in front of big …”
Aqua America Inc (WTR) Discussed on CNBC's Squawk On The Street
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
And those are water stocks. People are locked n. >> water, h 2 o. You can do without oil, but you cannot do without water, you got a locked in audience, gender, everything and AQUA AMERICA, we like that stock. California service water, we love that stock also. You know, convoluted, they help with the budget. Obama allocates 6 billion toward
“… also. You know, convoluted, they help with the budget. Obama allocates 6 billion toward …”
Aqua America Inc (WTR) Discussed on CNBC's Squawk On The Street
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
>>> now, to a stock that's bucking the bear, or maybe it's drowning the bear. It at least got it wet. AQUA AMERICA, water, it is a water utility company serving about 3 million customers. Over the last week, the stock is up 8%, near its 62-week high set in november. Probably because I finally paid my bill. Here is nick debenedictis, chairman and ceo of AQUA AMERICA. Thanks very much for being with >> good morning, mark. Thank you for paying your bill finally rchl it was overdue.
“… n november. Probably because I finally paid my bill. Here is nick debenedictis, chairman and ceo of AQUA AMERICA. Thanks very much for being with >> good morning, mark. Thank you for paying your bill finally rchl it was overdue. …”
Aqua America Inc (WTR) Discussed on CNBC's Squawk On The Street
Aqua America Inc is in the news. Find out how this impacts WTR trading on Ockham Research.
>> up next, tim geithner's big what's at stake for the treasury secretary as he rolls out his plan to save the banks? Find out what's being heard on k >> then AQUA AMERICA. This is a water utility. Its stock at a one-year high. The ceo with us to talk about whether it will keep running. Plus the financial services industry talking about the toxic bank plan.
“… ut whether it will keep running. Plus the financial services industry talking about the toxic bank plan. …”