The Prudent Investor

A Quick Look at York Water
January 18, 2007, 7:56 am
Filed under: Water Utilities

The eighth company to be examined is York Water (NASDAQ:YORK), with a market cap of 185 Million.

Yahoo Finance offers the following description:

The York Water Company engages in the impounding, purification, and distribution of water in York County, Pennsylvania, the United States. The company has two reservoirs, Lake Williams and Lake Redman, which together hold up to 2.23 billion gallons of water. It supplies water for residential, commercial, industrial, and other purposes. As of June 30, 2006, the company served approximately 165,000 people in 34 municipalities within York County.

With a current price of $17.99, the company exhibits a P/E of 31.8, about the industry average. The PEG of 7.9 is the highest of the group and is very troublesome. Of equally troublesome significance is the P/S of 6.7, the second highest of the comparison group. Quarterly Revenue Growth lags the industry at 6.4%, and the the Dividend Yield 2.5% does not give me adequate comfort.

I think that I can stop the comparison here. The PEG and P/S numbers remove this from consideration because I do not see anything to compensate for them. This company will not survive to the next round.


1 Comment so far
Leave a comment

This is very nice and informative post. I have bookmarked your site in order to find out your post in the future.

Comment by Best Home

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: