AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWK - US0304201033 - Common Stock
132.45 USD
+1.19 (+0.91%)
132.5 USD
+0.05 (+0.04%)
AWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. While AWK belongs to the best of the industry regarding profitability, 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.
- AWK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AWK's Return On Assets of 3.20% is fine compared to the rest of the industry. AWK outperforms 64.29% of its industry peers.
- The Return On Equity of AWK (10.20%) is better than 85.71% of its industry peers.
- AWK's Return On Invested Capital of 4.57% is fine compared to the rest of the industry. AWK outperforms 78.57% 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 4.89%.
- The last Return On Invested Capital (4.57%) for AWK is above the 3 year average (4.11%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 21.93%, AWK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- AWK's Profit Margin has improved in the last couple of years.
- AWK's Operating Margin of 36.96% is amongst the best of the industry. AWK outperforms 85.71% of its industry peers.
- In the last couple of years the Operating Margin of AWK has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AWK is destroying value.
- AWK has about the same amout of shares outstanding than it did 1 year ago.
- AWK has more shares outstanding than it did 5 years ago.
- AWK 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 AWK is in the distress zone and has some risk of bankruptcy.
- AWK has a Altman-Z score (1.00) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.29 is on the high side and indicates that AWK has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.29, AWK is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.6
WACC7.62%
2.3 Liquidity
- AWK has a Current Ratio of 0.42. This is a bad value and indicates that AWK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.42, AWK is doing worse than 85.71% of the companies in the same industry.
- AWK has a Quick Ratio of 0.42. 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's Quick ratio of 0.39 is on the low side compared to the rest of the industry. AWK is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- AWK 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.
- The Revenue has grown by 12.29% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.35% on average over the past years.
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
- AWK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.50% yearly.
- AWK 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 2Y7.77%
EPS Next 3Y7.52%
EPS Next 5Y7.5%
Revenue Next Year10.7%
Revenue Next 2Y8.73%
Revenue Next 3Y8.1%
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
- With a Price/Earnings ratio of 23.48, AWK is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as AWK.
- AWK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.52, which indicates a rather expensive current valuation of AWK.
- 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 24.12, AWK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AWK is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.48 |
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 decent profitability rating of AWK may justify a higher PE ratio.
PEG (NY)2.54
PEG (5Y)2.94
EPS Next 2Y7.77%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.56%, AWK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.99, AWK is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.91, AWK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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
- 55.85% of the earnings are spent on dividend by AWK. This is a bit on the high side, but may be sustainable.
- The dividend of AWK 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%
132.45
+1.19 (+0.91%)
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 Change0.02%
Ins Owners0.08%
Ins Owner Change0.09%
Market Cap25.84B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts67.37
Price Target142.95 (7.93%)
Short Float %4.49%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend3
Dividend Growth(5Y)9.01%
DP55.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-10 2026-02-10 (0.8275)
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)-1.06%
PT rev (3m)-0.38%
EPS NQ rev (1m)0.12%
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%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.52 | ||
| P/S | 5.1 | ||
| P/FCF | N/A | ||
| P/OCF | 12.7 | ||
| P/B | 2.37 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)5.64
EY4.26%
EPS(NY)6.16
Fwd EY4.65%
FCF(TTM)-4.8
FCFYN/A
OCF(TTM)10.43
OCFY7.87%
SpS25.98
BVpS55.9
TBVpS50
PEG (NY)2.54
PEG (5Y)2.94
Graham Number84.22
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
WACC7.62%
ROIC/WACC0.6
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 Year10.7%
Revenue Next 2Y8.73%
Revenue Next 3Y8.1%
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 / 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.
Can you provide the valuation status for AMERICAN WATER WORKS CO INC?
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 are the PE and PB ratios of AMERICAN WATER WORKS CO INC (AWK) stock?
The Price/Earnings (PE) ratio for AMERICAN WATER WORKS CO INC (AWK) is 23.48 and the Price/Book (PB) ratio is 2.37.
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 55.85%.