Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 5 Mar, 25 | YORW | Buy | USD 33.56 | USD 35.57 | USD 37.59 | 30 days | 12.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
The York Water Company impounds, purifies, and distributes drinking water. It owns and operates three wastewater collection systems; ten wastewater collection and treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which hold approximately 2.2 billion gallons of water. The company also operates a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns satellite groundwater systems in York, Adams, and Lancaster Counties, as well as two impounding dams on primary system located in York and Springfield Townships. It serves customers in the fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries in 56 municipalities within four counties in south-central Pennsylvania. The York Water Company was incorporated in 1816 and is based in York, Pennsylvania.
Revenue Growth – Operating revenues increased by $3.93 million, from $71.03 million in 2023 to $74.96 million in 2024, driven by rate adjustments and an expanding customer base.
Higher Capital Investments – The Company invested $48.2 million in infrastructure improvements, including 50,200 feet of pipeline replacement, ensuring long-term operational efficiency and service reliability.
Net Income Decline – York Water’s net income fell by $3.43 million, from $23.76 million in 2023 to $20.33 million in 2024, primarily due to increased operational expenses and lower AFUDC.
Earnings Per Share (EPS) Reduction – Basic and Diluted EPS decreased by $0.24, from $1.66 in 2023 to $1.42 in 2024, reflecting reduced profitability despite revenue growth.
Key investment risks for York Water Company include regulatory changes affecting water rates, rising operational and maintenance costs, higher interest expenses on debt, declining AFUDC contributions, and the capital-intensive nature of infrastructure upgrades, which may impact profitability and cash flow.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 33.56 | 29.53 | 35.57 | 37.59 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Technical Observation (on the daily chart):
YORW is showing signs of a potential trend reversal after a prolonged downtrend, with the 21-day MA crossing above the 50-day MA, indicating short-term bullish momentum. RSI is nearing overbought levels at 68.70, suggesting possible consolidation or a pullback. Increased volume supports the recent price recovery, with key support around USD 30.00 and resistance near USD 34.00-USD 35.00. If momentum holds, further upside is possible, but caution is needed due to potential overbought conditions.
York Water Company demonstrated resilience in 2024, achieving revenue growth of USD 3.93 million to USD 74.96 million, driven by rate adjustments, infrastructure charges, and an expanding customer base. While net income declined due to increased operational costs and lower AFUDC, the Company maintained its commitment to long-term growth, investing USD 48.2 million in infrastructure, including pipeline replacements and wastewater system improvements. Additionally, dividends per share rose by 4%, reflecting confidence in financial stability. With planned investments of USD 46 million in 2025 and USD 48.5 million in 2026, York Water is positioning itself for sustained expansion, ensuring reliable service and enhanced shareholder value.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to The York Water Company (NASDAQ: YORW) at the closing market price of USD 33.56 as of March 04,2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Regulated Water
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| YORW The York Water Company |
-1.01 2.78% | 35.27 | 21.34 | 21.14 | 6.87 | 2.21 | 9.41 | 15.25 |
| AWK American Water Works |
-4.6 3.08% | 144.66 | 25.99 | 22.88 | 5.65 | 2.46 | 8.59 | 15.26 |
| SBS Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR |
0.32 1.67% | 19.53 | 14.15 | 9.14 | 0.43 | 1.66 | 0.57 | 1.61 |
| WTRG Essential Utilities Inc |
-1.21 2.94% | 39.98 | 20.76 | 18.42 | 4.45 | 1.69 | 7.39 | 16.08 |
| STRNY Severn Trent PLC PK |
-1.25 3.38% | 35.72 | 63.51 | 19.92 | 4.38 | 9.15 | 8.76 | 19.74 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 04,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
