AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - NYSE:AWK - US0304201033 - Common Stock
129.77 USD
-0.24 (-0.18%)
129.51 USD
-0.26 (-0.2%)
Overall AWK gets a fundamental rating of 4 out of 10. We evaluated AWK against 15 industry peers in the Water Utilities industry. While AWK has a great profitability rating, there are quite some 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
Looking at the Return On Assets, with a value of 3.20%, AWK is in line with its industry, outperforming 60.00% of the companies in the same industry.
AWK's Return On Equity of 10.20% is amongst the best of the industry. AWK outperforms 86.67% of its industry peers.
With a decent Return On Invested Capital value of 4.57%, AWK is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AWK is in line with the industry average of 4.87%.
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
The Profit Margin of AWK (21.93%) is better than 66.67% of its industry peers.
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 86.67% of its industry peers.
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.
The number of shares outstanding for AWK has been increased compared to 5 years ago.
AWK has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.99, AWK perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
AWK has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
AWK has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: AWK underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.63
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.42 indicates that AWK may have some problems paying its short term obligations.
AWK's Current ratio of 0.42 is on the low side compared to the rest of the industry. AWK is outperformed by 86.67% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.39, AWK is doing worse than 86.67% 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.
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 12.29% in the last year.
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 7.31% on average per year.
AWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.31%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
Revenue Next 5Y7.87%
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.
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
AWK is valuated rather expensively with a Price/Earnings ratio of 23.01.
Compared to the rest of the industry, the Price/Earnings ratio of AWK indicates a slightly more expensive valuation: AWK is more expensive than 60.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. AWK is around the same levels.
A Price/Forward Earnings ratio of 21.04 indicates a rather expensive 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 34.43, AWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 21.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AWK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)2.88
EPS Next 2Y7.88%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
AWK has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 3.40, AWK is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, AWK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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
AWK pays out 55.85% 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.
DP55.85%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
129.77
-0.24 (-0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change-0.96%
Ins Owners0.08%
Ins Owner Change1.11%
Market Cap25.32B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts55.45
Price Target145.23 (11.91%)
Short Float %3.55%
Short Ratio5.96
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-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)1.21%
PT rev (3m)0.34%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 21.04 | ||
| P/S | 4.99 | ||
| P/FCF | N/A | ||
| P/OCF | 12.44 | ||
| P/B | 2.32 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.64
EY4.35%
EPS(NY)6.17
Fwd EY4.75%
FCF(TTM)-4.8
FCFYN/A
OCF(TTM)10.43
OCFY8.04%
SpS25.99
BVpS55.9
TBVpS50.01
PEG (NY)2.57
PEG (5Y)2.88
Graham Number84.23
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
WACC7.25%
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 Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.31%
Revenue 1Y (TTM)12.29%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%9.67%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
Revenue Next 5Y7.87%
EBIT growth 1Y15.89%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year63.83%
EBIT Next 3Y25.59%
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 8.96% 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%.