AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:AWC • US0304201033
107.6 EUR
-0.1 (-0.09%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, AWC scores 5 out of 10 in our fundamental rating. 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 correct valuation and a medium 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.
- 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
- 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.
- 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.
- AWC has a better Return On Invested Capital (4.57%) 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 4.57%.
- 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.
- Looking at the Operating Margin, with a value of 36.96%, AWC belongs to the top 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
- 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.
- The debt/assets ratio for AWC is higher compared to a year ago.
2.2 Solvency
- AWC has an Altman-Z score of 0.99. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AWC (0.99) is better than 100.00% of its industry peers.
- A Debt/Equity ratio of 1.29 is on the high side and indicates that AWC has dependencies on debt 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 | 0.99 |
ROIC/WACC0.58
WACC7.89%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that AWC may have some problems paying its short term obligations.
- AWC has a better Current ratio (0.42) than 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.
- With a decent Quick ratio value of 0.39, AWC is doing good in 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.
- 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 12.29% in the last year.
- AWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
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.
- AWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.90% yearly.
EPS Next Y9.24%
EPS Next 2Y7.86%
EPS Next 3Y7.52%
EPS Next 5Y7.5%
Revenue Next Year10.35%
Revenue Next 2Y8.89%
Revenue Next 3Y8.24%
Revenue Next 5Y7.9%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 22.75, AWC is valued on the expensive side.
- Based on the Price/Earnings ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- AWC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 20.80, the valuation of AWC can be described as rather expensive.
- 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 (25.57), we can say AWC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 20.8 |
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 | 14.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AWC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)2.85
EPS Next 2Y7.86%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.57%, AWC has a reasonable but not impressive dividend return.
- AWC's Dividend Yield is a higher than the industry average which is at 2.46.
- AWC's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 2Y7.86%
EPS Next 3Y7.52%
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 22.75 and the Price/Book (PB) ratio is 2.29.
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.