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.*
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 yearNeutral
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 yearsNeutral
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 yearsCautious
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
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STOCKThis 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.