American States Water CoAWR +1.06%73 Interest Coverage is 4.24 as of Mar. 2026, which is 14% below its 10-year median of 4.92. GuruFocus rates AWR with a GF Score™ of 73/100 and a GF Value™ of $84.88 (Fairly Valued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, American States Water Co ranks better than 54.79% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. American States Water Co's
Operating Income
for the
three
months ended in Mar. 2026 was $51.4 Mil. American States Water Co's Interest Expense for the
three
months ended in Mar. 2026 was $-12.1 Mil.
American States Water Co's interest coverage for the quarter that ended in Mar. 2026 was 4.24.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for American States Water Co's Interest Coverage or its related term are showing as below:
AWR'
s Interest Coverage Range Over the Past 10 Years
Min: 3.66 Med: 4.92 Max: 6.15
Current: 4.47
AWR's Interest Coverage is ranked better than 54.79% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs AWR: 4.47
American States Water Co (NYSE:AWR) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
American States Water Co Interest Coverage Related Terms
American States Water Co Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
AWR vs CWT, HTO, MSEX: Interest Coverage Comparison
For the Utilities - Regulated Water subindustry, American States Water Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American States Water Co Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American States Water Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where American States Water Co's Interest Coverage falls into.
American States Water Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American States Water Co (AWR) has a Interest Coverage of 4.24 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American States Water Co and its competitors. This is 14% below median its historical median of 4.92. Over the past decade, American States Water Co's Interest Coverage has ranged from 3.66 to 6.15. According to the industry distribution chart, American States Water Co ranks #203 out of 449 companies in the Utilities - Regulated industry, placing it in the top 45.2%.
Is American States Water Co's Interest Coverage too high?
American States Water Co's current Interest Coverage of 4.24 is 14% below median its 10-year median of 4.92. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 6.15. The Utilities - Regulated industry median Interest Coverage is 3.78. American States Water Co's value of 4.24 is 12.2% above this industry median. Based on the distribution chart, American States Water Co ranks #203 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, American States Water Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American States Water Co's Interest Coverage compare to CWT and HTO?
According to the Utilities - Regulated industry distribution chart, American States Water Co ranks #203 out of 449 companies for Interest Coverage. This puts American States Water Co in the upper half of its industry. The industry median Interest Coverage is 3.78. American States Water Co's value of 4.24 is 12.2% above this benchmark. Historically, American States Water Co's own Interest Coverage has ranged from 3.66 to 6.15 over the past decade. While the company's 10-year median is 4.92 vs. the industry median of 3.78, American States Water Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American States Water Co's current Interest Coverage of 4.24 is 12.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American States Water Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American States Water Co's current Interest Coverage is 4.24, which is 14% below median its own 10-year median of 4.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American States Water Co stock overvalued right now?
Based on GuruFocus' analysis, American States Water Co (AWR) is currently considered Fairly Valued. The stock's GF Value™ is $84.88, compared to a current price of $79.87 — trading 5.9% below its estimated fair value. The current Interest Coverage is 4.24, which is 14% below median its 10-year median of 4.92 and 12.2% above the Utilities - Regulated industry median of 3.78. American States Water Co's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For American States Water Co (AWR), the current Interest Coverage is 4.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American States Water Co (AWR) Overvalued in 2026?
Based on GuruFocus' analysis, American States Water Co stock appears to be undervalued.
The current stock price of $79.87 is trading 5.9% below its estimated GF Value™ of $84.88.
GuruFocus considers American States Water Co to be Fairly Valued.
Key valuation signals for AWR:
Interest Coverage: 4.24 (14% below median its 10-year median of 4.92)
GF Value™: $84.88 vs. price of $79.87 (5.9% below fair value)
Industry Position: 12.2% above the Utilities - Regulated median (#203 of 449)
No single metric tells the full story. See the AWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American States Water Co is a water and utilities holding company based in California. The segments of the firm include water, electric, and contracted services. Within these segments, American States Water conducts water and electric operations through Golden State Water Company and Bear Valley Electric Service, Inc while contracted services through American States Utility Services and its subsidiaries. Golden State Water conducts its operations across various counties in California and is regulated by the California Public Utilities Commission. American States Utility Services has contracted with the U.S. government to provide water services to various military installations. The majority of the company's revenue is derived from water services to commercial and residential customers.
73GF Score
Get the complete analysis for AWR
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