Aqua America, Inc. [NYSE:WTR]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Aqua America, Inc. [WTR] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give WTR an Outperform rating. The average 12-month price forecast for this stock is $37.94, with the high estimate being $43.00, the low estimate being $34.00 and the median estimate amounting to $37.50. This is compared to its latest closing price of $33.56.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Aqua America, Inc. [WTR] is sitting at 2.20. This is compared to 1 month ago, when its average rating was 2.20.
For the quarter ending in Sep-18 Aqua America, Inc. [WTR] generated $0.23 billion in sales. That’s 5.68% lower than the average estimate of $0.24 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 26 Feb (In 47 Days).
Fundamental Analysis of Aqua America, Inc. [WTR]
Now let’s turn to look at profitability: with a current Operating Margin for Aqua America, Inc. [WTR] sitting at +40.64 and its Gross Margin at +47.63, this company’s Net Margin is now 29.80%. These measurements indicate that Aqua America, Inc. [WTR] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 8.38, and its Return on Invested Capital has reached 7.70%. Its Return on Equity is 12.59, and its Return on Assets is 3.76. These metrics suggest that this Aqua America, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Aqua America, Inc. [WTR] has generated a Total Debt to Total Equity ratio of 109.66. Similarly, its Total Debt to Total Capital is 52.30, while its Total Debt to Total Assets stands at 33.29. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 102.56, and its Long-Term Debt to Total Capital is 48.92. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 17.38 and its Total Debt to EBITDA Value is 4.61. The Enterprise Value to Sales for this firm is now 9.69, and its Total Debt to Enterprise Value stands at 0.24. Aqua America, Inc. [WTR] has a Price to Book Ratio of 3.56, a Price to Cash Flow Ratio of 18.33 and P/E Ratio of 23.70. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Aqua America, Inc. [WTR] earns $529,101 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.26 and its Total Asset Turnover is 0.13. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.41 and its Current Ratio is 0.46. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Aqua America, Inc. [WTR] has 177.92M shares outstanding, amounting to a total market cap of $5.90B. Its stock price has been found in the range of 32.09 to 38.24. At its current price, it has moved by -13.34% from its 52-week high, and it has moved 3.27% from its 52-week low.
This stock’s Beta value is currently 0.49, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 44.84. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Aqua America, Inc. [WTR] a Reliable Buy?
Shares of Aqua America, Inc. [WTR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.