American States Water CoAWR +1.06%73 ROA % is 4.40% as of Mar. 2026, which is 12% below its 10-year median of 5.02. 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 511 Utilities - Regulated companies, American States Water Co ranks better than 74.36% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. American States Water Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $119.8 Mil.
American States Water Co's average Total Assets over the quarter that ended in Mar. 2026 was $2,724.6 Mil. Therefore, American States Water Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.40%.
The historical rank and industry rank for American States Water Co's ROA % or its related term are showing as below:
AWR'
s ROA % Range Over the Past 10 Years
Min: 3.98 Med: 5.02 Max: 5.84
Current: 5.04
During the past 13 years, American States Water Co's highest ROA % was 5.84%. The lowest was 3.98%. And the median was 5.02%.
AWR's ROA % is ranked better than 74.36% of 511
companies
in the Utilities - Regulated industry
Industry Median: 3.02
vs AWR: 5.04
American States Water Co (NYSE:AWR) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Utilities - Regulated Water subindustry, American States Water Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American States Water Co's ROA % distribution charts can be found below:
* The bar in red indicates where American States Water Co's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
American States Water Co (AWR) has a ROA % of 4.40% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on American States Water Co and its competitors. This is 12% below median its historical median of 5.02. Over the past decade, American States Water Co's ROA % has ranged from 3.98 to 5.84. According to the industry distribution chart, American States Water Co ranks #131 out of 511 companies in the Utilities - Regulated industry, placing it in the top 25.6%.
Is American States Water Co's ROA % too high?
American States Water Co's current ROA % of 4.40% is 12% below median its 10-year median of 5.02. Over the past 10 years, this metric has ranged from a low of 3.98 to a high of 5.84. The Utilities - Regulated industry median ROA % is 3.02. American States Water Co's value of 4.40% is 45.7% above this industry median. Based on the distribution chart, American States Water Co ranks #131 out of 511 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 ROA % compare to CWT and HTO?
According to the Utilities - Regulated industry distribution chart, American States Water Co ranks #131 out of 511 companies for ROA %. This puts American States Water Co in the upper half of its industry. The industry median ROA % is 3.02. American States Water Co's value of 4.40% is 45.7% above this benchmark. Historically, American States Water Co's own ROA % has ranged from 3.98 to 5.84 over the past decade. While the company's 10-year median is 5.02 vs. the industry median of 3.02, 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 ROA % for an Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.02, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American States Water Co's current ROA % of 4.40% is 45.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on American States Water Co and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American States Water Co's current ROA % is 4.40%, which is 12% below median its own 10-year median of 5.02. 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 ROA % is 4.40%, which is 12% below median its 10-year median of 5.02 and 45.7% above the Utilities - Regulated industry median of 3.02. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For American States Water Co (AWR), the current ROA % is 4.40% 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:
ROA %: 4.40% (12% below median its 10-year median of 5.02)
GF Value™: $84.88 vs. price of $79.87 (5.9% below fair value)
Industry Position: 45.7% above the Utilities - Regulated median (#131 of 511)
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
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