American States Water Company (AWR - Free Report) announced that its unit American States Utility Services Inc. (‘ASUS’) has received a contract worth $510 million to operate and maintain the water distribution and wastewater collection systems at Eglin Air Force Base, Florida.
Contract Details
Per the contract, American States Water Company unit will be required to provide fresh water and wastewater collection facilities to the Air Force base for the next 50 years.
ASUS was selected through a competitive bid for this defense contract. Appreciating its knowledge and expertise in maintenance and construction management services for water and wastewater systems located in military bases throughout the country, this company was found suitable among the six bidders.
Existing Defense Contract of ASUS
ASUS through its subsidiaries already has five, 50-year firm, fixed-price defense service contracts from the various United States military bases. The inclusion of this new defense contract will further enhance the earnings visibility of this water utility company.
Contracted Services segment of American States Water Company made up nearly 20% of its total revenues in 2015, signing of the new defense contact will certainly increase the contribution of this segment in the total mix.
Our View
American States Water Company’s strength lies in its expanding customer base, extensive water rights and strong credit ratings. Plus the long term defense service contracts will boost the topline of this water utility company. In addition, organic growth initiatives and consistent dividend payment makes this stock attractive.
American States Water Company currently has a Zacks Rank#3(Hold). Some better-ranked stocks in the water space are American Water Works Company, Inc. (AWK - Free Report) , Connecticut Water Service Inc. and California Water Service Group (CWT - Free Report) , all three currently carrying a Zacks Rank #2 (Buy).
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American States Water Company (AWR - Free Report) announced that its unit American States Utility Services Inc. (‘ASUS’) has received a contract worth $510 million to operate and maintain the water distribution and wastewater collection systems at Eglin Air Force Base, Florida.
Contract Details
Per the contract, American States Water Company unit will be required to provide fresh water and wastewater collection facilities to the Air Force base for the next 50 years.
ASUS was selected through a competitive bid for this defense contract. Appreciating its knowledge and expertise in maintenance and construction management services for water and wastewater systems located in military bases throughout the country, this company was found suitable among the six bidders.
Existing Defense Contract of ASUS
ASUS through its subsidiaries already has five, 50-year firm, fixed-price defense service contracts from the various United States military bases. The inclusion of this new defense contract will further enhance the earnings visibility of this water utility company.
Contracted Services segment of American States Water Company made up nearly 20% of its total revenues in 2015, signing of the new defense contact will certainly increase the contribution of this segment in the total mix.
Our View
American States Water Company’s strength lies in its expanding customer base, extensive water rights and strong credit ratings. Plus the long term defense service contracts will boost the topline of this water utility company. In addition, organic growth initiatives and consistent dividend payment makes this stock attractive.
American States Water Company currently has a Zacks Rank#3(Hold). Some better-ranked stocks in the water space are American Water Works Company, Inc. (AWK - Free Report) , Connecticut Water Service Inc. and California Water Service Group (CWT - Free Report) , all three currently carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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