Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
American States Water Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 8.97%.
The industry rank for American States Water Co's 3-Year RORE % or its related term are showing as below:
AWR's 3-Year RORE % is ranked better than 53.25% of 492
companies
in the Utilities - Regulated industry
Industry Median: 6.97
vs AWR: 8.97
American States Water Co (NYSE:AWR) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
American States Water Co 3-Year RORE % Related Terms
American States Water Co 3-Year RORE % 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.
For the Utilities - Regulated Water subindustry, American States Water Co's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American States Water Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where American States Water Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
American States Water Co (AWR) has a 3-Year RORE % of 8.97 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on American States Water Co and its competitors. According to the industry distribution chart, American States Water Co ranks #230 out of 492 companies in the Utilities - Regulated industry, placing it in the top 46.7%.
Is American States Water Co's 3-Year RORE % too high?
American States Water Co's current 3-Year RORE % is 8.97. The Utilities - Regulated industry median 3-Year RORE % is 6.97. American States Water Co's value of 8.97 is 28.7% above this industry median. Based on the distribution chart, American States Water Co ranks #230 out of 492 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, American States Water Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American States Water Co's 3-Year RORE % compare to CWT and HTO?
According to the Utilities - Regulated industry distribution chart, American States Water Co ranks #230 out of 492 companies for 3-Year RORE %. This puts American States Water Co in the upper half of its industry. The industry median 3-Year RORE % is 6.97. American States Water Co's value of 8.97 is 28.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Utilities - Regulated company?
The median 3-Year RORE % among Utilities - Regulated companies is 6.97, based on 492 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American States Water Co's current 3-Year RORE % of 8.97 is 28.7% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on American States Water Co and its competitors. For the Utilities - Regulated industry, the median 3-Year RORE % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American States Water Co's current 3-Year RORE % is 8.97. 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 $85.42, compared to a current price of $84.76 — trading 0.8% below its estimated fair value. The current 3-Year RORE % is 8.97 and 28.7% above the Utilities - Regulated industry median of 6.97. American States Water Co's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For American States Water Co (AWR), the current 3-Year RORE % is 8.97 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 $84.76 is trading 0.8% below its estimated GF Value™ of $85.42.
GuruFocus considers American States Water Co to be Fairly Valued.
Key valuation signals for AWR:
3-Year RORE %: 8.97
GF Value™: $85.42 vs. price of $84.76 (0.8% below fair value)
Industry Position: 28.7% above the Utilities - Regulated median (#230 of 492)
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.
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