AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - FRA:AWC - US0304201033 - Common Stock
117.65 EUR
-0.95 (-0.8%)
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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AWC was profitable.
In the past year AWC had a positive cash flow from operations.
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
AWC has a better Return On Assets (3.19%) than 100.00% of its industry peers.
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.
AWC has a better Return On Invested Capital (4.47%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWC is in line with the industry average of 4.47%.
The 3 year average ROIC (4.11%) for AWC is below the current ROIC(4.47%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 21.91%, AWC belongs to the best 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's Operating Margin of 36.48% is amongst the best of the industry. AWC outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWC is destroying value.
Compared to 1 year ago, AWC has about the same amount of shares outstanding.
AWC has more shares outstanding than it did 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 1.03. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
AWC's Altman-Z score of 1.03 is amongst the best of the industry. AWC outperforms 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 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 | 1.03 |
ROIC/WACC0.61
WACC7.35%
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.
AWC's Current ratio of 0.35 is fine compared to the rest of the industry. AWC outperforms 75.00% of its industry peers.
AWC has a Quick 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.
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
The Earnings Per Share has grown by an nice 9.62% 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 13.37% in the past year. This is quite good.
AWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
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
AWC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
Based on estimates for the next years, AWC will show a small growth in Revenue. The Revenue will grow by 6.40% on average per year.
EPS Next Y8.86%
EPS Next 2Y7.9%
EPS Next 3Y7.41%
EPS Next 5Y7.26%
Revenue Next Year8.72%
Revenue Next 2Y7.39%
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.
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
The Price/Earnings ratio is 25.30, which means the current valuation is very expensive for AWC.
Based on the Price/Earnings ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.27. AWC is around the same levels.
Based on the Price/Forward Earnings ratio of 22.43, the valuation of AWC can be described as rather expensive.
AWC's Price/Forward Earnings ratio is rather cheap when compared to the industry. AWC is 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/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.43 |
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 | 15.23 |
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)2.85
PEG (5Y)3.17
EPS Next 2Y7.9%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 4.83, AWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
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 2Y7.9%
EPS Next 3Y7.41%
FRA:AWC (9/15/2025, 7:00:00 PM)
117.65
-0.95 (-0.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap22.95B
Analysts55.24
Price Target122.35 (3.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend2.56
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)-2.23%
PT rev (3m)-4.32%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.43 | ||
| P/S | 5.46 | ||
| P/FCF | N/A | ||
| P/OCF | 13.85 | ||
| P/B | 2.53 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)4.65
EY3.95%
EPS(NY)5.24
Fwd EY4.46%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)8.49
OCFY7.22%
SpS21.53
BVpS46.53
TBVpS41.52
PEG (NY)2.85
PEG (5Y)3.17
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 | 1.03 |
F-Score6
WACC7.35%
ROIC/WACC0.61
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 Y8.86%
EPS Next 2Y7.9%
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 Year8.72%
Revenue Next 2Y7.39%
Revenue Next 3Y7.06%
Revenue Next 5Y6.4%
EBIT growth 1Y16.17%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year64.18%
EBIT Next 3Y26.02%
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%