AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - FRA:AWC - US0304201033 - Common Stock
114.2 EUR
+1.2 (+1.06%)
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 has a great profitability rating, there are quite some 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.
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
Looking at the Return On Assets, with a value of 3.20%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 10.20%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC's Return On Invested Capital of 4.57% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
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 4.57%.
The last Return On Invested Capital (4.57%) 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 | 10.2% | ||
| ROIC | 4.57% |
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 Profit Margin of 21.93%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of AWC has grown nicely.
With an excellent Operating Margin value of 36.96%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.96% | ||
| PM (TTM) | 21.93% | ||
| 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.
The number of shares outstanding for AWC remains at a similar level compared to 1 year ago.
AWC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AWC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that AWC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AWC (1.01) is better than 100.00% of its industry peers.
AWC has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.29, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.64
WACC7.17%
2.3 Liquidity
A Current Ratio of 0.42 indicates that AWC may have some problems paying its short term obligations.
AWC's Current ratio of 0.42 is fine compared to the rest of the industry. AWC outperforms 75.00% of its industry peers.
A Quick Ratio of 0.39 indicates that AWC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.39, 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 | 0.42 | ||
| Quick Ratio | 0.39 |
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.
Looking at the last year, AWC shows a quite strong growth in Revenue. The Revenue has grown by 12.29% in the last year.
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)12.35%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.6%
Revenue 1Y (TTM)12.29%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
3.2 Future
The Earnings Per Share is expected to grow by 7.31% on average over the next years.
The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.31%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
Revenue Next 5Y7.87%
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 23.45, 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 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.46 indicates a rather expensive valuation of AWC.
Based on the Price/Forward Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AWC to the average of the S&P500 Index (34.98), we can say AWC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.56 |
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)2.62
PEG (5Y)2.94
EPS Next 2Y7.88%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, AWC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.90, AWC pays a bit more dividend than its industry peers.
AWC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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
AWC pays out 55.85% of its income as dividend. 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.
DP55.85%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
FRA:AWC (11/17/2025, 7:00:00 PM)
114.2
+1.2 (+1.06%)
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 Cap22.28B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts55.45
Price Target125.82 (10.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend2.58
Dividend Growth(5Y)9.01%
DP55.85%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.43%
Min EPS beat(2)-3.16%
Max EPS beat(2)2.31%
EPS beat(4)2
Avg EPS beat(4)0.41%
Min EPS beat(4)-3.67%
Max EPS beat(4)6.16%
EPS beat(8)3
Avg EPS beat(8)-0.48%
EPS beat(12)5
Avg EPS beat(12)0.14%
EPS beat(16)8
Avg EPS beat(16)-0.52%
Revenue beat(2)2
Avg Revenue beat(2)5.06%
Min Revenue beat(2)3.82%
Max Revenue beat(2)6.3%
Revenue beat(4)4
Avg Revenue beat(4)5.77%
Min Revenue beat(4)3.82%
Max Revenue beat(4)7.23%
Revenue beat(8)8
Avg Revenue beat(8)4.18%
Revenue beat(12)11
Avg Revenue beat(12)3.8%
Revenue beat(16)12
Avg Revenue beat(16)1.68%
PT rev (1m)2.8%
PT rev (3m)0.54%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 21.46 | ||
| P/S | 5.09 | ||
| P/FCF | N/A | ||
| P/OCF | 12.69 | ||
| P/B | 2.37 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 14.56 |
EPS(TTM)4.87
EY4.26%
EPS(NY)5.32
Fwd EY4.66%
FCF(TTM)-4.14
FCFYN/A
OCF(TTM)9
OCFY7.88%
SpS22.42
BVpS48.22
TBVpS43.13
PEG (NY)2.62
PEG (5Y)2.94
Graham Number72.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 10.2% | ||
| ROCE | 6.03% | ||
| ROIC | 4.57% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 4.76% | ||
| OM | 36.96% | ||
| PM (TTM) | 21.93% | ||
| 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-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 341.61% | ||
| Cap/Sales | 58.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.01 |
F-Score7
WACC7.17%
ROIC/WACC0.64
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 Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.31%
Revenue 1Y (TTM)12.29%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
Revenue Next 5Y7.87%
EBIT growth 1Y15.89%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year63.83%
EBIT Next 3Y25.59%
EBIT Next 5Y18.89%
FCF growth 1Y-18.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.34%
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 8.96% 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 55.85%.