Aqua America Stock Analysis, Valuation (NYSE:WTR)
Take a look at Amigobulls Aqua America stock analysis video. This is our analyst opinion covering the buy and sell arguments for WTR stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Aqua America Inc Stock Rating 3.1/5
Amigobulls WTR stock analysis takes into account various financial ratios like relative valuation, Aqua America revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Aqua America dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Aqua America valuation analysis. Aqua America stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy WTR stock?
- The TTM operating margin was good at 40.09 for Aqua America.
- Net margins stood at a healthy 30% (average) for Aqua America in the Trailing Twelve Months.
- Aqua America's return on invested capital of 6.1 is good.
- The LTM ROE of 12.6 for Aqua America is attractive.
Should you sell WTR stock?
- The WTR stock currently trades at a PE of 26.6, which is expensive, compared to the sector average of 20.1.
- The company is trading at a price to sales multiple of 8.1, which is higher in comparison to the Utilities sector average of 2.1, making WTR stock expensive.
- The company has a negative free cash flow margin of -14.1.
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Amigobulls Aqua America stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of WTR stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Aqua America revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Aqua America stock.