AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWK - US0304201033 - Common Stock
128.15 USD
-0.31 (-0.24%)
128.15 USD
0 (0%)
AWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 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. While showing a medium growth rate, AWK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AWK had positive earnings in the past year.
In the past year AWK had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.20%, AWK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Equity value of 10.20%, AWK belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
AWK has a better Return On Invested Capital (4.57%) than 80.00% of its industry peers.
AWK had an Average Return On Invested Capital over the past 3 years of 4.11%. This is in line with the industry average of 4.77%.
The 3 year average ROIC (4.11%) for AWK 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
AWK's Profit Margin of 21.93% is fine compared to the rest of the industry. AWK outperforms 66.67% of its industry peers.
AWK's Profit Margin has improved in the last couple of years.
AWK has a Operating Margin of 36.96%. This is amongst the best in the industry. AWK outperforms 86.67% 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
AWK 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 AWK remains at a similar level compared to 1 year ago.
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
AWK has an Altman-Z score of 0.99. This is a bad value and indicates that AWK is not financially healthy and even has some risk of bankruptcy.
AWK has a Altman-Z score (0.99) 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.
With a Debt to Equity ratio value of 1.29, 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 | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.63
WACC7.29%
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.
AWK has a worse Current ratio (0.42) than 86.67% of its industry peers.
A Quick Ratio of 0.39 indicates that AWK may have some problems paying its short term obligations.
With a Quick ratio value of 0.39, AWK is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| 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
The Earnings Per Share is expected to grow by 7.48% on average over the next years.
AWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.90% yearly.
EPS Next Y9.26%
EPS Next 2Y7.8%
EPS Next 3Y7.52%
EPS Next 5Y7.48%
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
The Price/Earnings ratio is 22.72, which indicates a rather expensive current valuation of AWK.
AWK's Price/Earnings is on the same level as the industry average.
AWK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
The Price/Forward Earnings ratio is 20.81, which indicates a rather expensive current valuation of AWK.
AWK's Price/Forward Earnings is on the same level as the industry average.
AWK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWK is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.26 |
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)2.45
PEG (5Y)2.85
EPS Next 2Y7.8%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, AWK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, AWK is paying slightly less dividend.
AWK's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
On average, the dividend of AWK grows each year by 9.01%, which is quite nice.
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 2Y7.8%
EPS Next 3Y7.52%
128.15
-0.31 (-0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.56%
Inst Owner Change4.89%
Ins Owners0.08%
Ins Owner Change0.3%
Market Cap25.00B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts67.37
Price Target144.48 (12.74%)
Short Float %3.85%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend3
Dividend Growth(5Y)9.01%
DP55.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-0.52%
PT rev (3m)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.81 | ||
| P/S | 4.93 | ||
| P/FCF | N/A | ||
| P/OCF | 12.29 | ||
| P/B | 2.29 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)5.64
EY4.4%
EPS(NY)6.16
Fwd EY4.81%
FCF(TTM)-4.8
FCFYN/A
OCF(TTM)10.43
OCFY8.14%
SpS25.98
BVpS55.9
TBVpS50
PEG (NY)2.45
PEG (5Y)2.85
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 | 0.99 |
F-Score7
WACC7.29%
ROIC/WACC0.63
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 Y9.26%
EPS Next 2Y7.8%
EPS Next 3Y7.52%
EPS Next 5Y7.48%
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.
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 9.26% 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 55.85%.