American States Water Company AWR

Competitive advantage analysis · utilities

Regulated Utilities
Overall moat score
67/100
Moderate

About American States Water Company

American States Water Company, through its subsidiaries, engages in the provision of water and electric services to residential, commercial, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. The company purchases, produces, distributes, and sells water, as well as distributes electricity. It provides water service to approximately 265,100 customers; and distributes … Full AWR analysis →

Competitive advantage assessment

Key strengths

  • Earning the Allowed ROE Return on equity is strong vs peers (score 0.92), suggesting rate-base growth is translating into earnings.
  • Best-in-Class Cost Discipline Operational cost discipline is strong (score 0.69), supporting margin quality.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Regulatory Franchise

Moderate
72

Where AWR ranks in Utilities - Regulated Water

American States Water Company ranks #4 of 15 scored companies in Utilities - Regulated Water by moat score — the top 27%. The widest moat in the group is American Water Works Company, I (AWK) at 72/100.

Moat scores for companies ranked near AWR in Utilities - Regulated Water
# Company Moat score Rating
1 American Water Works Company, I AWK 72/100 Moderate
2 Artesian Resources Corporation ARTNA 70/100 Moderate
3 Essential Utilities, Inc. WTRG 69/100 Moderate
4 American States Water Company AWR 67/100 Moderate
5 Middlesex Water Company MSEX 63/100 Moderate
6 The York Water Company YORW 62/100 Moderate
7 Companhia de saneamento Basico SBS 58/100 Moderate
8 Pure Cycle Corporation PCYO 52/100 Moderate
9 California Water Service Group CWT 49/100 Developing

See every Regulated Utilities company ranked by moat score →

How AWR scores on the Regulated Utilities defenses

Regulatory Franchise

Score 72 · 25% of the moat score

The franchise is the moat, granted rather than earned: an exclusive right to serve a territory in exchange for regulated prices and an obligation to supply.

Rate-Base Return Quality

Score 78 · 20% of the moat score

A utility earns an allowed return on the capital invested in its network, the rate base.

Dividend Sustainability

Score 42 · 18% of the moat score

Utilities are owned largely for income, and the dividend is only as safe as the operating cash flow behind it.

Capital Structure Discipline

Score 72 · 17% of the moat score

Regulated utilities carry more debt than almost any other sector, which suits how predictable their revenue is but makes credit quality a core competitive asset.

Operational Efficiency

Score 65 · 12% of the moat score

Efficiency is unusually consequential under regulation.

Essential Service Resilience

Score 71 · 8% of the moat score

Electricity, gas and water are bought in a recession at close to the volume bought in an expansion, which is why utility revenue barely tracks the economic cycle.

How each Regulated Utilities defense is measured, in full →

Understanding AWR's moat

What is American States Water Company's moat score?

American States Water Company (AWR) scores 66 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #4 of 15 scored companies in Utilities - Regulated Water, the top 27%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 14 companies in Utilities - Regulated Water. Its strongest defense is Rate-Base Return Quality (78/100) and its weakest is Dividend Sustainability (42/100).

How does American States Water Company compare with other Utilities - Regulated Water companies?

American States Water Company ranks #4 of 15 scored companies in Utilities - Regulated Water by moat score. The widest moat in Utilities - Regulated Water is American Water Works Company, I (AWK) at 72/100. The companies ranked closest are Essential Utilities, Inc. (WTRG) at 69 just above it and Middlesex Water Company (MSEX) at 63 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Regulated Utilities in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 14 companies in Utilities - Regulated Water. The defenses are then weighted to produce the overall score out of 100.

Why is American States Water Company scored with the Regulated Utilities template?

A regulated utility is a legal monopoly whose prices are set by a regulator rather than by a market. It cannot raise prices at will and it cannot be undercut, so most of the usual questions about competitive advantage barely apply. What matters is the quality of the regulatory bargain: whether the company earns the return it is allowed, funds its capital programme cheaply, and sustains the dividend investors own it for.

Which competitive defenses are measured for American States Water Company?

The Regulated Utilities template measures 6 defenses, and AWR scores: Regulatory Franchise (72), Rate-Base Return Quality (78), Dividend Sustainability (42), Capital Structure Discipline (72), Operational Efficiency (65), Essential Service Resilience (71). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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