American States Water Company

American States Water Company carries $930.6M in total debt against $22.2M in cash reserves — debt is roughly 42.0x the cash position. Managing this leverage effectively will be important for long-term financial stability. The company is burning cash, with free cash flow at -$20.6M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at 13.2%, which is decent for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. An ROA of 5.0% suggests reasonable efficiency in deploying the company's asset base. Revenue has grown from $491.5M (2022) to $658.1M (2025), reflecting a 34% increase over the period.

With a beta below 0.7, American States Water Company typically sees smaller price swings than the overall market, offering a degree of stability during turbulent periods. Debt significantly exceeds cash reserves, which means the company's financial flexibility could be constrained during economic downturns. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. These risk factors are not exhaustive — macroeconomic shifts, regulatory changes, and competitive dynamics can all influence American States Water Company's trajectory.