AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
FRA:AWC - Deutsche Boerse Ag - US0304201033 - Common Stock - Currency: EUR
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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AWC has been profitable.
AWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AWC (3.20%) is better than 100.00% of its industry peers.
AWC's Return On Equity of 10.17% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.39%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC had an Average Return On Invested Capital over the past 3 years of 4.11%. This is in line with the industry average of 4.39%.
The last Return On Invested Capital (4.39%) for AWC is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 10.17% | ||
| ROIC | 4.39% |
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
AWC has a better Profit Margin (22.44%) than 100.00% of its industry peers.
AWC's Profit Margin has improved in the last couple of years.
AWC has a Operating Margin of 36.68%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.68% | ||
| PM (TTM) | 22.44% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AWC is destroying value.
The number of shares outstanding for AWC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AWC has more shares outstanding
AWC has a worse debt/assets ratio than last year.
2.2 Solvency
AWC has an Altman-Z score of 1.06. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.06, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external 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 | 1.06 |
ROIC/WACC0.58
WACC7.57%
2.3 Liquidity
AWC has a Current Ratio of 0.39. This is a bad value and indicates that AWC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.39, AWC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that AWC may have some problems paying its short term obligations.
AWC has a better Quick ratio (0.35) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.16% over the past year.
The Earnings Per Share has been growing slightly by 7.98% on average over the past years.
The Revenue has grown by 10.63% in the past year. This is quite good.
Measured over the past years, AWC shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
EPS 1Y (TTM)5.16%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%30.43%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%16.38%
3.2 Future
The Earnings Per Share is expected to grow by 7.23% 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 7.07% yearly.
EPS Next Y8.87%
EPS Next 2Y8.28%
EPS Next 3Y7.07%
EPS Next 5Y7.23%
Revenue Next Year7.9%
Revenue Next 2Y7.15%
Revenue Next 3Y7.44%
Revenue Next 5Y7.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.18, the valuation of AWC can be described as expensive.
AWC's Price/Earnings ratio is rather cheap when compared to the industry. AWC is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AWC is valued at the same level.
The Price/Forward Earnings ratio is 24.04, which indicates a rather expensive current valuation of AWC.
Based on the Price/Forward Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, AWC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWC indicates a rather cheap valuation: AWC is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16 |
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.
The excellent profitability rating of AWC may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)3.28
EPS Next 2Y8.28%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, AWC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.71, AWC pays a bit more dividend than its industry peers.
AWC's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of AWC is nicely growing with an annual growth rate of 9.01%!
Dividend Growth(5Y)9.01%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
55.66% of the earnings are spent on dividend by AWC. This is a bit on the high side, but may be sustainable.
The dividend of AWC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.66%
EPS Next 2Y8.28%
EPS Next 3Y7.07%
FRA:AWC (3/7/2025, 7:00:00 PM)
127.75
+1.55 (+1.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap24.90B
Analysts67.37
Price Target131.34 (2.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend2.77
Dividend Growth(5Y)9.01%
DP55.66%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.73%
Min EPS beat(2)-4.7%
Max EPS beat(2)6.16%
EPS beat(4)1
Avg EPS beat(4)-2.27%
Min EPS beat(4)-5.83%
Max EPS beat(4)6.16%
EPS beat(8)4
Avg EPS beat(8)1.67%
EPS beat(12)7
Avg EPS beat(12)2.32%
EPS beat(16)8
Avg EPS beat(16)-0.1%
Revenue beat(2)2
Avg Revenue beat(2)6.71%
Min Revenue beat(2)6.18%
Max Revenue beat(2)7.23%
Revenue beat(4)4
Avg Revenue beat(4)4.35%
Min Revenue beat(4)1.96%
Max Revenue beat(4)7.23%
Revenue beat(8)8
Avg Revenue beat(8)3.75%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)10
Avg Revenue beat(16)0.1%
PT rev (1m)0.12%
PT rev (3m)-5.17%
EPS NQ rev (1m)15.07%
EPS NQ rev (3m)106.7%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)3.7%
Revenue NQ rev (3m)3.7%
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 24.04 | ||
| P/S | 5.77 | ||
| P/FCF | N/A | ||
| P/OCF | 13.22 | ||
| P/B | 2.62 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 16 |
EPS(TTM)4.88
EY3.82%
EPS(NY)5.31
Fwd EY4.16%
FCF(TTM)-3.83
FCFYN/A
OCF(TTM)9.66
OCFY7.56%
SpS22.13
BVpS48.81
TBVpS43.41
PEG (NY)2.95
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 10.17% | ||
| ROCE | 5.79% | ||
| ROIC | 4.39% | ||
| ROICexc | 4.41% | ||
| ROICexgc | 4.58% | ||
| OM | 36.68% | ||
| PM (TTM) | 22.44% | ||
| 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%
ROICexcg growth 3Y4.46%
ROICexcg 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-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 362.44% | ||
| Cap/Sales | 60.97% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 81.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.06 |
F-Score7
WACC7.57%
ROIC/WACC0.58
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)5.16%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%30.43%
EPS Next Y8.87%
EPS Next 2Y8.28%
EPS Next 3Y7.07%
EPS Next 5Y7.23%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%16.38%
Revenue Next Year7.9%
Revenue Next 2Y7.15%
Revenue Next 3Y7.44%
Revenue Next 5Y7.07%
EBIT growth 1Y14.23%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year62.88%
EBIT Next 3Y25.51%
EBIT Next 5Y18.87%
FCF growth 1Y-15.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.12%
OCF growth 3Y12.38%
OCF growth 5Y8.14%