AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWK - US0304201033 - Common Stock
133.34 USD
-0.01 (-0.01%)
133.34 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AWK. AWK was compared to 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.
- AWK had positive earnings in each of the past 5 years.
- Each year in the past 5 years AWK had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AWK (3.20%) is better than 64.29% of its industry peers.
- AWK has a better Return On Equity (10.20%) than 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.57%, AWK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AWK is in line with the industry average of 4.99%.
- 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
- AWK has a Profit Margin of 21.93%. This is in the better half of the industry: AWK outperforms 64.29% of its industry peers.
- In the last couple of years the Profit Margin of AWK has grown nicely.
- Looking at the Operating Margin, with a value of 36.96%, AWK belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- AWK'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
- 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
- AWK has an Altman-Z score of 1.01. This is a bad value and indicates that AWK is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AWK (1.01) is comparable to the rest of the industry.
- AWK has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external 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 | 1.01 |
ROIC/WACC0.59
WACC7.69%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that AWK may have some problems paying 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.
- A Quick Ratio of 0.39 indicates that AWK may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.39, AWK is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.35% over the past year.
- The Earnings Per Share has been growing slightly by 7.98% on average over the past years.
- AWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.29%.
- 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
- Based on estimates for the next years, AWK will show a small growth in Earnings Per Share. The EPS will grow by 7.50% on average per year.
- Based on estimates for the next years, AWK will show a small growth in Revenue. The Revenue will grow by 7.90% on average per year.
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
- 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
- A Price/Earnings ratio of 23.64 indicates a rather expensive valuation of AWK.
- Compared to the rest of the industry, the Price/Earnings ratio of AWK is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, AWK is valued at the same level.
- The Price/Forward Earnings ratio is 21.66, 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 24.26, AWK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 21.66 |
4.2 Price Multiples
- 64.29% of the companies in the same industry are more expensive than AWK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.63 |
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)2.56
PEG (5Y)2.96
EPS Next 2Y7.77%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- AWK has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.99, AWK is paying slightly less dividend.
- AWK's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| 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 their dividend for at least 10 years, which is a reliable track record.
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.
- AWK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.85%
EPS Next 2Y7.77%
EPS Next 3Y7.52%
133.34
-0.01 (-0.01%)
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 Cap26.02B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts67.37
Price Target142.95 (7.21%)
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 | 23.64 | ||
| Fwd PE | 21.66 | ||
| P/S | 5.13 | ||
| P/FCF | N/A | ||
| P/OCF | 12.78 | ||
| P/B | 2.39 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 14.63 |
EPS(TTM)5.64
EY4.23%
EPS(NY)6.16
Fwd EY4.62%
FCF(TTM)-4.8
FCFYN/A
OCF(TTM)10.43
OCFY7.82%
SpS25.98
BVpS55.9
TBVpS50
PEG (NY)2.56
PEG (5Y)2.96
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 | 1.01 |
F-Score7
WACC7.69%
ROIC/WACC0.59
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 23.64 and the Price/Book (PB) ratio is 2.39.
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%.