YORWThe York Water Company
Is the business good?
The checks split: earnings fully cash-backed (1.4×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is YORW?
The York Water Company earns 5.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.0 points below what the capital costs: growth destroys value
- Operating margin
- 37%
Operating margin · Utilities - Regulated Water median 29% · 12 months to Q2 2026
- Cash conversion
- 1.39×
Cash conversion · 1.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +10%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 45% |
| FY2021 | 42% |
| FY2022 | 41% |
| FY2023 | 42% |
| FY2024 | 37% |
| FY2025 | 36% |
Details›
- Operating margin12 months to Q2 2026
- 37%
- Net margin12 months to Q2 2026
- 29%
- Free cash flow margin
- −17%
- Revenue, trailing twelve months
- $83M
- Free cash flow, trailing twelve months
- −$14M
- Net income, trailing twelve months
- $24M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.