York Water: An Investment Opportunity in a High-Valuation Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Market Valuation Warning: The Shiller P/E ratio of the S&P 500 reached 42.84 in June 2026, just 3.5% away from the all-time high of 44.19, indicating significant valuation risks, as historical data shows that ratios above 30 are typically unsustainable, suggesting a potential market correction of 20% or more in the near future.
- Stability of York Water: Operating as a water utility in South-Central Pennsylvania, York Water benefits from stable demand and a monopoly position in its service area, ensuring predictable cash flows that are less susceptible to competitive pressures, thereby enhancing its business stability.
- Infrastructure Investment and Revenue Growth: The Pennsylvania Public Utility Commission approved a rate increase for York Water to support $145 million in infrastructure investments, expected to boost annual revenue by $18.85 million, translating to a 24% increase from the $77.5 million reported in 2025, further strengthening its financial position.
- Historic Dividend Record: York Water has paid continuous dividends since 1816, boasting a 210-year payout history that far exceeds any public company in the U.S., with a current dividend yield of 3.00%, making it an attractive investment option in a high-valuation market.
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Analyst Views on YORW
About YORW
The York Water Company is a provider of water and wastewater utility services. The Company's primary business is to impound, purify to meet or exceed safe drinking water standards and distribute water. The Company also owns and operates three wastewater collection systems and twelve wastewater collection and treatment systems. The Company operates within its franchised water and wastewater territory, which covers portions of 58 municipalities within four counties in south-central Pennsylvania. The Company is regulated by the Pennsylvania Public Utility Commission (PPUC) for both water and wastewater in the areas of billing, payment procedures, dispute processing, terminations, service territory, debt and equity financing and rate setting. Water service is supplied through its own distribution system. The Company obtains the bulk of its water supply for its primary system for York and Adams Counties from both the South Branch and East Branch of the Codorus Creek.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
York Water: An Investment Opportunity in a High-Valuation Market
- Market Valuation Warning: The Shiller P/E ratio of the S&P 500 reached 42.84 in June 2026, just 3.5% away from the all-time high of 44.19, indicating significant valuation risks, as historical data shows that ratios above 30 are typically unsustainable, suggesting a potential market correction of 20% or more in the near future.
- Stability of York Water: Operating as a water utility in South-Central Pennsylvania, York Water benefits from stable demand and a monopoly position in its service area, ensuring predictable cash flows that are less susceptible to competitive pressures, thereby enhancing its business stability.
- Infrastructure Investment and Revenue Growth: The Pennsylvania Public Utility Commission approved a rate increase for York Water to support $145 million in infrastructure investments, expected to boost annual revenue by $18.85 million, translating to a 24% increase from the $77.5 million reported in 2025, further strengthening its financial position.
- Historic Dividend Record: York Water has paid continuous dividends since 1816, boasting a 210-year payout history that far exceeds any public company in the U.S., with a current dividend yield of 3.00%, making it an attractive investment option in a high-valuation market.
See More
Investment Opportunity in Water Utility Amid Second-Priciest Stock Market
- Valuation Warning: The current Shiller P/E ratio of the S&P 500 stands at 42.84, just 3.5% shy of the all-time high of 44.19, with historical data indicating that ratios above 30 are unsustainable, suggesting a potential market correction of 20% or more in the near future.
- Utility Company Advantage: York Water, operating as a water utility in South-Central Pennsylvania, is well-positioned to thrive amid market volatility due to its stable cash flow and monopoly status, especially after receiving PPUC approval to raise rates, which is expected to boost annual revenue by $18.85 million, a 24% increase.
- Dividend History: With a continuous dividend payout since 1816, York Water boasts a 210-year dividend history, earning it the title of
See More
York Water Q1 Earnings Miss Expectations
- Earnings Performance: York Water's Q1 GAAP EPS of $0.33 fell short by $0.08, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Growth Lags: The company reported Q1 revenue of $20.07 million, an 8.7% year-over-year increase, yet it missed market expectations by $0.83 million, suggesting that revenue growth is not keeping pace in a competitive market.
- Historical Dividend Record: York Water has maintained dividends since 1816, totaling 210 years, and while the current earnings report is disappointing, its consistent dividend policy may still attract income-seeking investors.
- Industry Context: As the Colorado River crisis deepens, Western states are looking into desalination deals, presenting potential new market opportunities for York Water, although its current financial shortcomings may limit its expansion capabilities.
See More
York Water Co. Reports Increased Q1 Profit
- Profit Growth: York Water Co. reported a first-quarter net profit of $4.81 million, translating to earnings per share of $0.33, which marks a significant increase from last year's $3.64 million and $0.25 per share, indicating robust performance in water management.
- Revenue Increase: The company's revenue rose by 8.7% year-over-year to $20.07 million, up from $18.46 million last year, reflecting an expansion in customer base and service offerings.
- Market Positioning: The dual growth in revenue and profit further solidifies York Water's market position in the water industry, enhancing its capacity for future investments and expansions.
- Financial Health: The sustained profit and revenue growth provide a stronger financial foundation for the company, enabling it to pursue more capital expenditures and strategic investments to address industry challenges and seize market opportunities.
See More
York Water Company Reports Q1 2026 Financial Results
- Revenue Growth: York Water Company reported operating revenues of $20.074 million for Q1 2026, an increase of $1.618 million compared to Q1 2025, primarily driven by rate increases effective March 1, 2026, despite the reset of the Distribution System Improvement Charge to zero, indicating positive performance in expanding the customer base.
- Net Income Increase: The company achieved a net income of $4.814 million in the first quarter, up $1.176 million year-over-year, with basic and diluted earnings per share at $0.33, reflecting effective management in tax deductions and revenue growth.
- Capital Investment: In Q1 2026, York Water invested $9.8 million in infrastructure improvements and enterprise software upgrades, with an additional $38.1 million planned for the year to ensure a safe and reliable drinking water supply, supporting the growing customer demand.
- Acquisition Expansion: The company also acquired two wastewater systems for $470,000, including CMV Sewage Co. in York County and Pine Run Retirement Community in Adams County, further enhancing its competitive position and service capabilities in the water utility market.
See More
York Water: Wall Street's Greatest Dividend Stock
- Dividend Yield Advantage: York Water's dividend yield stands at 3.1%, which may seem modest, but its uninterrupted dividend payments since 1816 highlight its strong income stability and appeal in the market.
- Market Performance Review: Over the past five years, York Water's stock has plummeted by 44%, nearing a 50% decline from its peak, reflecting the market's indifference towards utilities, especially amid a tech stock rally that has diminished interest in traditional utilities.
- Regulatory Support and Revenue Growth: The Pennsylvania Public Utility Commission's approval for York Water to raise rates is expected to boost annual revenue by $18.85 million, or 24%, providing robust support for the company's future cash flow and profitability.
- Valuation Attractiveness: York Water is currently trading at less than 18 times earnings, significantly below the industry average, and represents a 44% discount to its average forward P/E ratio over the past five years, presenting a compelling investment opportunity at this price level.
See More
York Water: An Investment Opportunity in a High-Valuation Market
- Market Valuation Warning: The Shiller P/E ratio of the S&P 500 reached 42.84 in June 2026, just 3.5% away from the all-time high of 44.19, indicating significant valuation risks, as historical data shows that ratios above 30 are typically unsustainable, suggesting a potential market correction of 20% or more in the near future.
- Stability of York Water: Operating as a water utility in South-Central Pennsylvania, York Water benefits from stable demand and a monopoly position in its service area, ensuring predictable cash flows that are less susceptible to competitive pressures, thereby enhancing its business stability.
- Infrastructure Investment and Revenue Growth: The Pennsylvania Public Utility Commission approved a rate increase for York Water to support $145 million in infrastructure investments, expected to boost annual revenue by $18.85 million, translating to a 24% increase from the $77.5 million reported in 2025, further strengthening its financial position.
- Historic Dividend Record: York Water has paid continuous dividends since 1816, boasting a 210-year payout history that far exceeds any public company in the U.S., with a current dividend yield of 3.00%, making it an attractive investment option in a high-valuation market.
See More
Investment Opportunity in Water Utility Amid Second-Priciest Stock Market
- Valuation Warning: The current Shiller P/E ratio of the S&P 500 stands at 42.84, just 3.5% shy of the all-time high of 44.19, with historical data indicating that ratios above 30 are unsustainable, suggesting a potential market correction of 20% or more in the near future.
- Utility Company Advantage: York Water, operating as a water utility in South-Central Pennsylvania, is well-positioned to thrive amid market volatility due to its stable cash flow and monopoly status, especially after receiving PPUC approval to raise rates, which is expected to boost annual revenue by $18.85 million, a 24% increase.
- Dividend History: With a continuous dividend payout since 1816, York Water boasts a 210-year dividend history, earning it the title of
See More
York Water Q1 Earnings Miss Expectations
- Earnings Performance: York Water's Q1 GAAP EPS of $0.33 fell short by $0.08, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Growth Lags: The company reported Q1 revenue of $20.07 million, an 8.7% year-over-year increase, yet it missed market expectations by $0.83 million, suggesting that revenue growth is not keeping pace in a competitive market.
- Historical Dividend Record: York Water has maintained dividends since 1816, totaling 210 years, and while the current earnings report is disappointing, its consistent dividend policy may still attract income-seeking investors.
- Industry Context: As the Colorado River crisis deepens, Western states are looking into desalination deals, presenting potential new market opportunities for York Water, although its current financial shortcomings may limit its expansion capabilities.
See More
York Water Co. Reports Increased Q1 Profit
- Profit Growth: York Water Co. reported a first-quarter net profit of $4.81 million, translating to earnings per share of $0.33, which marks a significant increase from last year's $3.64 million and $0.25 per share, indicating robust performance in water management.
- Revenue Increase: The company's revenue rose by 8.7% year-over-year to $20.07 million, up from $18.46 million last year, reflecting an expansion in customer base and service offerings.
- Market Positioning: The dual growth in revenue and profit further solidifies York Water's market position in the water industry, enhancing its capacity for future investments and expansions.
- Financial Health: The sustained profit and revenue growth provide a stronger financial foundation for the company, enabling it to pursue more capital expenditures and strategic investments to address industry challenges and seize market opportunities.
See More
York Water Company Reports Q1 2026 Financial Results
- Revenue Growth: York Water Company reported operating revenues of $20.074 million for Q1 2026, an increase of $1.618 million compared to Q1 2025, primarily driven by rate increases effective March 1, 2026, despite the reset of the Distribution System Improvement Charge to zero, indicating positive performance in expanding the customer base.
- Net Income Increase: The company achieved a net income of $4.814 million in the first quarter, up $1.176 million year-over-year, with basic and diluted earnings per share at $0.33, reflecting effective management in tax deductions and revenue growth.
- Capital Investment: In Q1 2026, York Water invested $9.8 million in infrastructure improvements and enterprise software upgrades, with an additional $38.1 million planned for the year to ensure a safe and reliable drinking water supply, supporting the growing customer demand.
- Acquisition Expansion: The company also acquired two wastewater systems for $470,000, including CMV Sewage Co. in York County and Pine Run Retirement Community in Adams County, further enhancing its competitive position and service capabilities in the water utility market.
See More
York Water: Wall Street's Greatest Dividend Stock
- Dividend Yield Advantage: York Water's dividend yield stands at 3.1%, which may seem modest, but its uninterrupted dividend payments since 1816 highlight its strong income stability and appeal in the market.
- Market Performance Review: Over the past five years, York Water's stock has plummeted by 44%, nearing a 50% decline from its peak, reflecting the market's indifference towards utilities, especially amid a tech stock rally that has diminished interest in traditional utilities.
- Regulatory Support and Revenue Growth: The Pennsylvania Public Utility Commission's approval for York Water to raise rates is expected to boost annual revenue by $18.85 million, or 24%, providing robust support for the company's future cash flow and profitability.
- Valuation Attractiveness: York Water is currently trading at less than 18 times earnings, significantly below the industry average, and represents a 44% discount to its average forward P/E ratio over the past five years, presenting a compelling investment opportunity at this price level.
See More
