AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AWC - US0304201033 - Common Stock
111.6 EUR
+1.1 (+1%)
We assign a fundamental rating of 5 out of 10 to AWC. AWC was compared to 4 industry peers in the Water Utilities industry. AWC has an excellent profitability rating, but there are 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.
- In the past 5 years AWC has always been profitable.
- Each year in the past 5 years AWC had a positive operating cash flow.
1.2 Ratios
- AWC's Return On Assets of 3.20% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
- AWC has a Return On Equity of 10.20%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
- The Return On Invested Capital of AWC (4.57%) is better than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AWC is in line with the industry average of 4.57%.
- The 3 year average ROIC (4.11%) for AWC is below the current ROIC(4.57%), indicating increased profibility in the last year.
| 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's Profit Margin of 21.93% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of AWC has grown nicely.
- AWC has a better Operating Margin (36.96%) than 100.00% of its industry peers.
- 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.
- 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
- Based on the Altman-Z score of 1.00, we must say that AWC is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AWC (1.00) 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.
- The Debt to Equity ratio of AWC (1.29) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.58
WACC7.91%
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.
- AWC has a Quick Ratio of 0.42. 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 has a Quick ratio of 0.39. This is in the better half of the industry: AWC outperforms 75.00% of its industry peers.
| 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.
- The Revenue has grown by 12.29% 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)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 7.50% on average over the next years.
- The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y9.24%
EPS Next 2Y7.77%
EPS Next 3Y7.52%
EPS Next 5Y7.5%
Revenue Next Year10.09%
Revenue Next 2Y8.36%
Revenue Next 3Y7.69%
Revenue Next 5Y7.9%
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. Valuation
4.1 Price/Earnings Ratio
- AWC is valuated rather expensively with a Price/Earnings ratio of 23.20.
- 100.00% of the companies in the same industry are more expensive than AWC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AWC to the average of the S&P500 Index (26.94), we can say AWC is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.26, which indicates a rather expensive current valuation of AWC.
- 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.
- AWC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 21.26 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than AWC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.46 |
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)2.51
PEG (5Y)2.91
EPS Next 2Y7.77%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- AWC has a Yearly Dividend Yield of 2.48%.
- Compared to an average industry Dividend Yield of 2.44, AWC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, AWC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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
- 55.85% 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.
DP55.85%
EPS Next 2Y7.77%
EPS Next 3Y7.52%
FRA:AWC (1/20/2026, 7:00:00 PM)
111.6
+1.1 (+1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners98.62%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.78B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts67.37
Price Target125.36 (12.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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)0.19%
PT rev (3m)2.43%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 21.26 | ||
| P/S | 5.04 | ||
| P/FCF | N/A | ||
| P/OCF | 12.55 | ||
| P/B | 2.34 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 14.46 |
EPS(TTM)4.81
EY4.31%
EPS(NY)5.25
Fwd EY4.7%
FCF(TTM)-4.09
FCFYN/A
OCF(TTM)8.89
OCFY7.97%
SpS22.16
BVpS47.66
TBVpS42.63
PEG (NY)2.51
PEG (5Y)2.91
Graham Number71.82
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 |
F-Score7
WACC7.91%
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)12.35%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.6%
EPS Next Y9.24%
EPS Next 2Y7.77%
EPS Next 3Y7.52%
EPS Next 5Y7.5%
Revenue 1Y (TTM)12.29%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
Revenue Next Year10.09%
Revenue Next 2Y8.36%
Revenue Next 3Y7.69%
Revenue Next 5Y7.9%
EBIT growth 1Y15.89%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year68.74%
EBIT Next 3Y30.3%
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 for AWC 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.
What is the valuation of AMERICAN WATER WORKS CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN WATER WORKS CO INC (AWC.DE) is 23.2 and the Price/Book (PB) ratio is 2.34.
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 9.24% in the next year.