Summary
- American States Water Company remains a Hold despite improved valuation, reflecting limited upside and persistent risk factors.
- AWR’s fundamentals are strong—an A/A+ rating, solid EPS growth, and a 71-year dividend streak—but regulatory and geographic risks weigh on premium.
- Recent CPUC rate case outcomes were better, yet ongoing California exposure and rejected decoupling mechanisms temper forward confidence.
- AWR’s risk/…
Summary
- American States Water Company remains a Hold despite improved valuation, reflecting limited upside and persistent risk factors.
- AWR’s fundamentals are strong—an A/A+ rating, solid EPS growth, and a 71-year dividend streak—but regulatory and geographic risks weigh on premium.
- Recent CPUC rate case outcomes were better, yet ongoing California exposure and rejected decoupling mechanisms temper forward confidence.
- AWR’s risk/reward is unattractive above $71/share; other water utilities offer better yield, rate environments, and comparable safety.
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In this article, I’ll be looking to update my thesis on American States Water Company (AWR), a water company that I last covered over 2 years ago. At the time, I considered the company a
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