AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWK - US0304201033 - Common Stock
130.97 USD
+0.22 (+0.17%)
130.97 USD
0 (0%)
Overall AWK gets a fundamental rating of 4 out of 10. We evaluated AWK 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.
In the past year AWK had a positive cash flow from operations.
Each year in the past 5 years AWK has been profitable.
AWK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AWK has a Return On Assets of 3.20%. This is in the better half of the industry: AWK outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 10.20%, AWK belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Invested Capital of AWK (4.57%) is better than 80.00% 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 4.77%.
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 66.67% 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 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.
The number of shares outstanding for AWK remains at a similar level compared to 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
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's Altman-Z score of 1.00 is in line compared to the rest of the industry. AWK outperforms 53.33% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AWK has dependencies on debt financing.
The Debt to Equity ratio of AWK (1.29) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.63
WACC7.21%
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.
The Current ratio of AWK (0.42) is worse than 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.
AWK has a Quick ratio of 0.39. This is amonst the worse of the industry: AWK underperforms 86.67% 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.
AWK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.98% yearly.
AWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.29%.
AWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
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 7.48% yearly.
The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.48%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
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 23.22 indicates a rather expensive valuation of AWK.
60.00% of the companies in the same industry are cheaper than AWK, based on the Price/Earnings ratio.
AWK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.37.
The Price/Forward Earnings ratio is 21.23, which indicates a rather expensive current valuation of AWK.
Based on the Price/Forward Earnings ratio, AWK is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, AWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.23 |
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 | 14.45 |
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)2.59
PEG (5Y)2.91
EPS Next 2Y7.88%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
AWK has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
AWK's Dividend Yield is slightly below the industry average, which is at 3.47.
AWK's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of AWK is nicely growing with an annual growth rate of 9.01%!
AWK has been paying a dividend for at least 10 years, so it has 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 2Y7.88%
EPS Next 3Y7.54%
130.97
+0.22 (+0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change4.85%
Ins Owners0.08%
Ins Owner Change0.3%
Market Cap25.55B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts55.45
Price Target144.48 (10.32%)
Short Float %3.85%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)-4.34%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.23 | ||
| P/S | 5.04 | ||
| P/FCF | N/A | ||
| P/OCF | 12.56 | ||
| P/B | 2.34 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)5.64
EY4.31%
EPS(NY)6.17
Fwd EY4.71%
FCF(TTM)-4.8
FCFYN/A
OCF(TTM)10.43
OCFY7.96%
SpS25.98
BVpS55.9
TBVpS50
PEG (NY)2.59
PEG (5Y)2.91
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
WACC7.21%
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 5Y7.48%
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 5Y7.9%
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%.