AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - NYSE:AWK - US0304201033 - Common Stock
130.49 USD
-4.32 (-3.2%)
AWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Water Utilities industry. AWK scores excellent on profitability, but there are concerns on its financial health. AWK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AWK had positive earnings in the past year.
AWK had a positive operating cash flow in the past year.
In the past 5 years AWK has always been profitable.
Each year in the past 5 years AWK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.19%, AWK perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Return On Equity of AWK (10.14%) is better than 86.67% of its industry peers.
AWK has a Return On Invested Capital of 4.47%. This is in the better half of the industry: AWK outperforms 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWK is in line with the industry average of 4.85%.
The 3 year average ROIC (4.11%) for AWK 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 a decent Profit Margin value of 21.91%, AWK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AWK's Profit Margin has improved in the last couple of years.
The Operating Margin of AWK (36.48%) is better than 80.00% of its industry peers.
AWK's Operating Margin has improved in the last couple of years.
| 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), AWK is destroying value.
Compared to 1 year ago, AWK has about the same amount of shares outstanding.
AWK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AWK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that AWK is in the distress zone and has some risk of bankruptcy.
AWK has a Altman-Z score of 1.01. This is comparable to the rest of the industry: AWK outperforms 46.67% of its industry peers.
AWK has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.30, AWK is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.58
WACC7.74%
2.3 Liquidity
AWK has a Current Ratio of 0.35. This is a bad value and indicates that AWK is not financially healthy enough and could expect problems in meeting its short term obligations.
AWK has a Current ratio of 0.35. This is amonst the worse of the industry: AWK underperforms 93.33% of its industry peers.
A Quick Ratio of 0.32 indicates that AWK may have some problems paying its short term obligations.
AWK has a Quick ratio of 0.32. This is amonst the worse of the industry: AWK underperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
AWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.62%, which is quite good.
Measured over the past 5 years, AWK shows a small growth in Earnings Per Share. The EPS has been growing by 7.98% on average per year.
Looking at the last year, AWK shows a quite strong growth in Revenue. The Revenue has grown by 13.37% in the last year.
AWK 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
Based on estimates for the next years, AWK 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 Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
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.
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
AWK is valuated rather expensively with a Price/Earnings ratio of 23.86.
The rest of the industry has a similar Price/Earnings ratio as AWK.
Compared to an average S&P500 Price/Earnings ratio of 27.00, AWK is valued at the same level.
AWK is valuated rather expensively with a Price/Forward Earnings ratio of 21.16.
The rest of the industry has a similar Price/Forward Earnings ratio as AWK.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, AWK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWK indicates a somewhat cheap valuation: AWK is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWK does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AWK may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)2.99
EPS Next 2Y7.88%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
AWK has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
AWK's Dividend Yield is comparable with the industry average which is at 3.16.
Compared to an average S&P500 Dividend Yield of 2.31, AWK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of AWK is nicely growing with an annual growth rate of 9.01%!
AWK has paid a dividend for at least 10 years, which is a reliable track record.
AWK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.01%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
AWK pays out 56.23% of its income as dividend. This is a bit on the high side, but may be sustainable.
AWK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.23%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
NYSE:AWK (10/29/2025, 3:47:03 PM)
130.49
-4.32 (-3.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change0.05%
Ins Owners0.08%
Ins Owner Change1.11%
Market Cap25.46B
Revenue(TTM)4.94B
Net Income(TTM)1.08B
Analysts55
Price Target143.49 (9.96%)
Short Float %3.55%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend3
Dividend Growth(5Y)9.01%
DP56.23%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-0.38%
PT rev (3m)-1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.16 | ||
| P/S | 5.15 | ||
| P/FCF | N/A | ||
| P/OCF | 13.06 | ||
| P/B | 2.38 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 14.96 |
EPS(TTM)5.47
EY4.19%
EPS(NY)6.17
Fwd EY4.73%
FCF(TTM)-4.65
FCFYN/A
OCF(TTM)9.99
OCFY7.66%
SpS25.33
BVpS54.75
TBVpS48.85
PEG (NY)2.67
PEG (5Y)2.99
Graham Number82.09
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%
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-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 | 1.01 |
F-Score6
WACC7.74%
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)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
EPS Next Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
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%
AMERICAN WATER WORKS CO INC / AWK FAQ
Can you provide the ChartMill fundamental rating for AMERICAN WATER WORKS CO INC?
ChartMill assigns a fundamental rating of 4 / 10 to AWK.
What is the valuation status for AWK stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN WATER WORKS CO INC (AWK). This can be considered as Overvalued.
What is the profitability of AWK stock?
AMERICAN WATER WORKS CO INC (AWK) has a profitability rating of 7 / 10.
What is the earnings growth outlook for AMERICAN WATER WORKS CO INC?
The Earnings per Share (EPS) of AMERICAN WATER WORKS CO INC (AWK) is expected to grow by 8.94% in the next year.
Is the dividend of AMERICAN WATER WORKS CO INC sustainable?
The dividend rating of AMERICAN WATER WORKS CO INC (AWK) is 5 / 10 and the dividend payout ratio is 56.23%.