AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - FRA:AWC - US0304201033 - Common Stock
113.35 EUR
-0.65 (-0.57%)
We assign a fundamental rating of 5 out of 10 to AWC. AWC was compared to 4 industry peers in the Water Utilities industry. While AWC belongs to the best of the industry regarding profitability, there are concerns on its financial health. AWC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AWC had positive earnings in the past year.
AWC had a positive operating cash flow in the past year.
AWC had positive earnings in each of the past 5 years.
In the past 5 years AWC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.19%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of AWC (10.14%) is better than 100.00% of its industry peers.
AWC has a better Return On Invested Capital (4.47%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AWC is in line with the industry average of 4.47%.
The last Return On Invested Capital (4.47%) for AWC is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.14% | ||
| ROIC | 4.47% |
ROA(3y)3.09%
ROA(5y)3.39%
ROE(3y)10.16%
ROE(5y)11.75%
ROIC(3y)4.11%
ROIC(5y)4.07%
1.3 Margins
Looking at the Profit Margin, with a value of 21.91%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AWC has grown nicely.
AWC has a better Operating Margin (36.48%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of AWC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.48% | ||
| PM (TTM) | 21.91% | ||
| GM | N/A |
OM growth 3Y6.42%
OM growth 5Y1.75%
PM growth 3Y-11.29%
PM growth 5Y5.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AWC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AWC has about the same amount of shares outstanding.
The number of shares outstanding for AWC has been increased compared to 5 years ago.
Compared to 1 year ago, AWC has a worse debt to assets ratio.
2.2 Solvency
AWC has an Altman-Z score of 0.99. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
AWC has a better Altman-Z score (0.99) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that AWC has dependencies on debt financing.
AWC has a better Debt to Equity ratio (1.30) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.62
WACC7.26%
2.3 Liquidity
AWC has a Current Ratio of 0.35. This is a bad value and indicates that AWC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.35, AWC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that AWC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.32, AWC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
AWC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.35%, which is quite good.
Measured over the past 5 years, AWC shows a small growth in Earnings Per Share. The EPS has been growing by 7.98% on average per year.
The Revenue has grown by 10.63% in the past year. This is quite good.
The Revenue has been growing slightly by 5.35% on average over the past years.
EPS 1Y (TTM)12.35%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.6%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
AWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.40% yearly.
EPS Next Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.18, the valuation of AWC can be described as rather expensive.
Based on the Price/Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
AWC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.19, AWC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
AWC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWC does not grow enough to justify the current Price/Earnings ratio.
AWC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)2.9
EPS Next 2Y7.88%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.61%.
AWC's Dividend Yield is a higher than the industry average which is at 4.95.
AWC's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
On average, the dividend of AWC grows each year by 9.01%, which is quite nice.
Dividend Growth(5Y)9.01%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
56.23% of the earnings are spent on dividend by AWC. This is a bit on the high side, but may be sustainable.
AWC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.23%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
FRA:AWC (11/7/2025, 7:00:00 PM)
113.35
-0.65 (-0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap22.11B
Revenue(TTM)4.68B
Net Income(TTM)1.08B
Analysts55
Price Target124.8 (10.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend2.6
Dividend Growth(5Y)9.01%
DP56.23%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.42%
Min EPS beat(2)-3.67%
Max EPS beat(2)-3.16%
EPS beat(4)1
Avg EPS beat(4)-1.34%
Min EPS beat(4)-4.7%
Max EPS beat(4)6.16%
EPS beat(8)3
Avg EPS beat(8)-0.26%
EPS beat(12)5
Avg EPS beat(12)0.5%
EPS beat(16)7
Avg EPS beat(16)-0.72%
Revenue beat(2)2
Avg Revenue beat(2)4.78%
Min Revenue beat(2)3.82%
Max Revenue beat(2)5.74%
Revenue beat(4)4
Avg Revenue beat(4)5.74%
Min Revenue beat(4)3.82%
Max Revenue beat(4)7.23%
Revenue beat(8)8
Avg Revenue beat(8)3.6%
Revenue beat(12)11
Avg Revenue beat(12)3.28%
Revenue beat(16)11
Avg Revenue beat(16)0.58%
PT rev (1m)2%
PT rev (3m)-1.03%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-1.24%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 21.19 | ||
| P/S | 5.16 | ||
| P/FCF | N/A | ||
| P/OCF | 13.08 | ||
| P/B | 2.39 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 14.72 |
EPS(TTM)4.89
EY4.31%
EPS(NY)5.35
Fwd EY4.72%
FCF(TTM)-4.04
FCFYN/A
OCF(TTM)8.67
OCFY7.65%
SpS21.96
BVpS47.47
TBVpS42.36
PEG (NY)2.59
PEG (5Y)2.9
Graham Number72.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.14% | ||
| ROCE | 6.03% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 4.65% | ||
| OM | 36.48% | ||
| PM (TTM) | 21.91% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.09%
ROA(5y)3.39%
ROE(3y)10.16%
ROE(5y)11.75%
ROIC(3y)4.11%
ROIC(5y)4.07%
ROICexc(3y)4.14%
ROICexc(5y)4.11%
ROICexgc(3y)4.32%
ROICexgc(5y)4.32%
ROCE(3y)5.41%
ROCE(5y)5.39%
ROICexgc growth 3Y4.46%
ROICexgc growth 5Y-0.91%
ROICexc growth 3Y4.79%
ROICexc growth 5Y-0.15%
OM growth 3Y6.42%
OM growth 5Y1.75%
PM growth 3Y-11.29%
PM growth 5Y5.46%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 338.63% | ||
| Cap/Sales | 57.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 0.99 |
F-Score6
WACC7.26%
ROIC/WACC0.62
Cap/Depr(3y)360.71%
Cap/Depr(5y)332.23%
Cap/Sales(3y)60.79%
Cap/Sales(5y)55.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.35%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.6%
EPS Next Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
EBIT growth 1Y16.17%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year63.83%
EBIT Next 3Y25.59%
EBIT Next 5Y17.25%
FCF growth 1Y-9.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.93%
OCF growth 3Y12.38%
OCF growth 5Y8.14%
AMERICAN WATER WORKS CO INC / AWC.DE FAQ
What is the fundamental rating for AWC stock?
ChartMill assigns a fundamental rating of 5 / 10 to AWC.DE.
What is the valuation status of AMERICAN WATER WORKS CO INC (AWC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN WATER WORKS CO INC (AWC.DE). This can be considered as Fairly Valued.
What is the profitability of AWC stock?
AMERICAN WATER WORKS CO INC (AWC.DE) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for AWC stock?
The Earnings per Share (EPS) of AMERICAN WATER WORKS CO INC (AWC.DE) is expected to grow by 8.94% in the next year.
Is the dividend of AMERICAN WATER WORKS CO INC sustainable?
The dividend rating of AMERICAN WATER WORKS CO INC (AWC.DE) is 4 / 10 and the dividend payout ratio is 56.23%.