AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - FRA:AWC - US0304201033 - Common Stock
123.3 EUR
+0.65 (+0.53%)
Overall AWC gets a fundamental rating of 5 out of 10. We evaluated AWC against 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
In the past year AWC was profitable.
AWC had a positive operating cash flow in the past year.
AWC had positive earnings in each of the past 5 years.
Each year in the past 5 years AWC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.19%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC has a Return On Equity of 10.14%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
The Return On Invested Capital of AWC (4.47%) is better than 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 4.47%.
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
AWC has a Profit Margin of 21.91%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC's Profit Margin has improved in the last couple of years.
The Operating Margin of AWC (36.48%) is better 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AWC is destroying value.
Compared to 1 year ago, AWC has about the same amount of shares outstanding.
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.
AWC has a better Altman-Z score (1.06) than 100.00% of its industry peers.
AWC has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
AWC has a Debt to Equity ratio of 1.30. This is in the better half of the industry: AWC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.55
WACC8.13%
2.3 Liquidity
A Current Ratio of 0.35 indicates that AWC may have some problems paying its short term obligations.
With a decent Current ratio value of 0.35, AWC is doing good in 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.
The Quick ratio of AWC (0.32) is better than 75.00% of its industry peers.
| 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 9.62%, which is quite good.
The Earnings Per Share has been growing slightly by 7.98% on average over the past years.
Looking at the last year, AWC shows a quite strong growth in Revenue. The Revenue has grown by 13.37% 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)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
3.2 Future
Based on estimates for the next years, AWC will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
The Revenue is expected to grow by 6.40% on average over the next years.
EPS Next Y8.88%
EPS Next 2Y7.91%
EPS Next 3Y7.41%
EPS Next 5Y7.26%
Revenue Next Year8.83%
Revenue Next 2Y7.38%
Revenue Next 3Y7.06%
Revenue Next 5Y6.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.35, the valuation of AWC can be described as expensive.
Based on the Price/Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. AWC is around the same levels.
With a Price/Forward Earnings ratio of 23.34, AWC is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AWC indicates a rather cheap valuation: AWC is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AWC to the average of the S&P500 Index (22.94), we can say AWC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 23.34 |
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 | 15.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AWC may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)3.3
EPS Next 2Y7.91%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.31%.
AWC's Dividend Yield is a higher than the industry average which is at 4.80.
Compared to an average S&P500 Dividend Yield of 2.36, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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.
The dividend of AWC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.23%
EPS Next 2Y7.91%
EPS Next 3Y7.41%
FRA:AWC (10/17/2025, 7:00:00 PM)
123.3
+0.65 (+0.53%)
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 Cap24.06B
Analysts55
Price Target122.38 (-0.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend2.57
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)0.03%
PT rev (3m)-2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 23.34 | ||
| P/S | 5.69 | ||
| P/FCF | N/A | ||
| P/OCF | 14.41 | ||
| P/B | 2.63 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 15.64 |
EPS(TTM)4.68
EY3.8%
EPS(NY)5.28
Fwd EY4.29%
FCF(TTM)-3.98
FCFYN/A
OCF(TTM)8.56
OCFY6.94%
SpS21.69
BVpS46.87
TBVpS41.82
PEG (NY)2.97
PEG (5Y)3.3
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%
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-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 | 1.06 |
F-Score6
WACC8.13%
ROIC/WACC0.55
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)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
EPS Next Y8.88%
EPS Next 2Y7.91%
EPS Next 3Y7.41%
EPS Next 5Y7.26%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
Revenue Next Year8.83%
Revenue Next 2Y7.38%
Revenue Next 3Y7.06%
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%