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YORW:NASDAQThe York Water Company Analysis

Data as of 2026-05-12 - not real-time

$29.56

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

The York Water Company (YORW) is trading at $29.56, which sits below its 20‑day, 50‑day and 200‑day moving averages (29.72, 30.71 and 31.56 respectively), signaling a bearish price trend despite a modestly bullish MACD histogram. The RSI of 44 indicates neutral momentum, and decreasing volume suggests waning short‑term buying interest. Valuation metrics show a trailing P/E of 20.1, slightly below the industry average of 21.9, yet a discounted cash‑flow model places fair value near $9.85, implying the stock is markedly overvalued at current levels.
Fundamentally, the company reports 8.8% revenue growth and a solid gross margin of 72.7%, but its free cash flow is negative (-$28.9M) and debt‑to‑equity stands at 98%, raising concerns about dividend sustainability despite a 3.09% yield and a 60.8% payout ratio. Recent material news includes the acquisition of a small wastewater system (141 customers) and a proposed public offering of common stock, which could introduce dilution and affect capital structure.*

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Price below key moving averages indicating bearish bias
  • Decreasing trading volume and pending dilution from stock offering
  • Neutral RSI and modest bullish MACD histogram

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • Significant overvaluation relative to DCF fair value
  • High debt levels and negative free cash flow challenging dividend sustainability
  • Modest revenue growth and small acquisition adding limited upside

Long Term

> 3 years
Cautious
Model confidence: 7/10

Key Factors

  • DCF valuation suggests price is far above intrinsic value
  • Elevated debt‑to‑equity ratio and potential dilution risk
  • Dividend yield attractive but may be unsustainable given cash flow constraints

Key Metrics & Analysis

Financial Health

Revenue Growth8.80%
Profit Margin26.84%
P/E Ratio20.1
ROE8.95%
ROA2.66%
Debt/Equity98.15
P/B Ratio1.8
Op. Cash Flow$29.2M
Free Cash Flow$-28939000
Industry P/E21.9

Technical Analysis

TrendBearish
RSI44.1
Support$28.26
Resistance$31.56
MA 20$29.72
MA 50$30.71
MA 200$31.56
MACDBullish
VolumeDecreasing
Fear & Greed Index88.61

Valuation

Fair Value$9.85
Target Price$30.00
Upside/Downside1.49%
GradeOvervalued
TypeValue
Dividend Yield3.09%

Risk Assessment

Beta0.15
Volatility21.37%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.