AMERICAN WATER WORKS CO INC (AWC.DE) Fundamental Analysis & Valuation
FRA:AWC • US0304201033
Current stock price
This AWC.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AWC.DE Profitability Analysis
1.1 Basic Checks
- AWC had positive earnings in the past year.
- In the past year AWC had a positive cash flow from operations.
- In the past 5 years AWC has always been profitable.
- AWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 3.13%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of AWC (10.25%) is better than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AWC is in line with the industry average of 4.52%.
- The 3 year average ROIC (4.34%) for AWC is below the current ROIC(4.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 10.25% | ||
| ROIC | 4.52% |
1.3 Margins
- With an excellent Profit Margin value of 21.61%, 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 36.56% is amongst the best of 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 | 36.56% | ||
| PM (TTM) | 21.61% | ||
| GM | N/A |
2. AWC.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWC is destroying value.
- AWC has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for AWC has been increased compared to 5 years ago.
- AWC has a worse debt/assets ratio than last year.
2.2 Solvency
- AWC has an Altman-Z score of 0.95. 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 (0.95) than 100.00% of its industry peers.
- AWC has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
- AWC's Debt to Equity ratio of 1.33 is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
2.3 Liquidity
- AWC has a Current Ratio of 0.46. 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 Current ratio of AWC (0.46) is better than 75.00% of its industry peers.
- AWC has a Quick Ratio of 0.46. 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 (0.44) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.44 |
3. AWC.DE Growth Analysis
3.1 Past
- AWC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.81%.
- Measured over the past 5 years, AWC shows a small growth in Earnings Per Share. The EPS has been growing by 7.74% on average per year.
- The Revenue has grown by 9.74% in the past year. This is quite good.
- The Revenue has been growing slightly by 6.36% on average over the past years.
3.2 Future
- The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
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 accelerating.
4. AWC.DE Valuation Analysis
4.1 Price/Earnings Ratio
- AWC is valuated rather expensively with a Price/Earnings ratio of 22.99.
- 100.00% of the companies in the same industry are more expensive than AWC, based on the Price/Earnings ratio.
- AWC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.53.
- With a Price/Forward Earnings ratio of 21.11, 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.
- When comparing the Price/Forward Earnings ratio of AWC to the average of the S&P500 Index (37.95), we can say AWC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 21.11 |
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 | 14.26 |
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.
5. AWC.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.38%, AWC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.42, AWC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AWC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
- On average, the dividend of AWC grows each year by 8.59%, which is quite nice.
5.3 Sustainability
- 56.98% 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.
AWC.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:AWC (4/16/2026, 7:00:00 PM)
110.35
-0.25 (-0.23%)
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 21.11 | ||
| P/S | 4.94 | ||
| P/FCF | N/A | ||
| P/OCF | 12.33 | ||
| P/B | 2.34 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 14.26 |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 10.25% | ||
| ROCE | 6.12% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.71% | ||
| OM | 36.56% | ||
| PM (TTM) | 21.61% | ||
| GM | N/A | ||
| FCFM | N/A |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 349.66% | ||
| Cap/Sales | 60.82% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 74.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.95 |
AMERICAN WATER WORKS CO INC / AWC.DE Fundamental Analysis FAQ
What is the fundamental rating for AWC stock?
ChartMill assigns a fundamental rating of 5 / 10 to AWC.DE.
Can you provide the valuation status for AMERICAN WATER WORKS CO INC?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN WATER WORKS CO INC (AWC.DE). This can be considered as Fairly Valued.
How profitable is AMERICAN WATER WORKS CO INC (AWC.DE) stock?
AMERICAN WATER WORKS CO INC (AWC.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of AMERICAN WATER WORKS CO INC (AWC.DE) stock?
The Price/Earnings (PE) ratio for AMERICAN WATER WORKS CO INC (AWC.DE) is 22.99 and the Price/Book (PB) ratio is 2.34.
How sustainable is the dividend of AMERICAN WATER WORKS CO INC (AWC.DE) stock?
The dividend rating of AMERICAN WATER WORKS CO INC (AWC.DE) is 5 / 10 and the dividend payout ratio is 56.98%.