Avista Corp (AVA) stock analysis

P/E below its 5-year median

Avista's P/E of 13.5 is below its own 5-year median of 17.1.

P/E below the industry

Avista's P/E of 13.5 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA below its 5-year median

Avista's EV/EBITDA of 5.7 is below its 5-year median of 6.0.

P/B below the industry

Avista's price-to-book of 1.19 is below the Combination Electric and Gas, and Other Utility median of 1.74.

Trading below fair value

The share price of $40.34 is below our fair value estimate of $57.32.

Margin of safety over 20%

The price is 29.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 30.7% over the last twelve months, against a 5-year average of 8.3% a year.

Growing slower than the industry

Revenue grew -1.4% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance raised

Avista raised its 2028 Expected base annual capital expenditures outlook on Aug 1, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.0% over the last twelve months and averaged 7.1% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.7%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Avista's return on equity of 9.0% is below the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 8.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.8% over the last twelve months, against a 5-year average of 9.6%.

Net margin above the industry

Avista's net margin of 12.8% is above the Combination Electric and Gas, and Other Utility median of 12.7%.

Low debt

Debt is 11.7% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 109% five years ago to 11.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 154% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Avista paid dividends worth 4.9% of the share price over the last twelve months.

Yield above Treasuries

The 4.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Avista yields 4.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 66.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.