AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis
USA - NYSE:AWK - US0304201033 - Common Stock
135.419 USD
+0.03 (+0.02%)
We assign a fundamental rating of 4 out of 10 to AWK. AWK was compared to 14 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.
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 has a Return On Assets of 3.19%. This is comparable to the rest of the industry: AWK outperforms 57.14% of its industry peers.
Looking at the Return On Equity, with a value of 10.14%, AWK belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
AWK has a Return On Invested Capital of 4.47%. This is in the better half of the industry: AWK outperforms 71.43% 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 4.98%.
The last Return On Invested Capital (4.47%) for AWK is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.14% | ||
| ROIC | 4.47% |
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 21.91%. 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 36.48%, AWK is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
AWK's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.48% | ||
| PM (TTM) | 21.91% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWK is destroying value.
AWK has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AWK has more shares outstanding
The debt/assets ratio for AWK is higher compared to a year ago.
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.
AWK has a Altman-Z score (1.01) which is in line with its industry peers.
AWK has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AWK (1.30) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.6
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.35 indicates that AWK may have some problems paying its short term obligations.
AWK has a Current ratio of 0.35. This is amonst the worse of the industry: AWK underperforms 92.86% of its industry peers.
AWK has a Quick Ratio of 0.35. 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 Quick ratio of AWK (0.32) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.62% over the past year.
AWK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.98% yearly.
Looking at the last year, AWK shows a quite strong growth in Revenue. The Revenue has grown by 13.37% in the last year.
Measured over the past years, AWK shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
EPS 1Y (TTM)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
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 7.26% on average per year.
Based on estimates for the next years, AWK will show a small growth in Revenue. The Revenue will grow by 6.40% on average per year.
EPS Next Y8.86%
EPS Next 2Y7.9%
EPS Next 3Y7.41%
EPS Next 5Y7.26%
Revenue Next Year8.72%
Revenue Next 2Y7.39%
Revenue Next 3Y7.06%
Revenue Next 5Y6.4%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AWK is valuated rather expensively with a Price/Earnings ratio of 24.76.
64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Earnings ratio.
AWK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.94, AWK is valued on the expensive side.
64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Forward Earnings ratio.
AWK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 21.94 |
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 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.01 |
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)2.79
PEG (5Y)3.1
EPS Next 2Y7.9%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
AWK has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
AWK's Dividend Yield is slightly below the industry average, which is at 3.37.
AWK's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
56.23% 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.
DP56.23%
EPS Next 2Y7.9%
EPS Next 3Y7.41%
NYSE:AWK (9/19/2025, 10:17:09 AM)
135.419
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change-1.73%
Ins Owners0.08%
Ins Owner Change1.13%
Market Cap26.42B
Analysts55.24
Price Target144.05 (6.37%)
Short Float %4.33%
Short Ratio6.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend3
Dividend Growth(5Y)9.01%
DP56.23%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.42%
Min EPS beat(2)-3.67%
Max EPS beat(2)-3.16%
EPS beat(4)1
Avg EPS beat(4)-1.34%
Min EPS beat(4)-4.7%
Max EPS beat(4)6.16%
EPS beat(8)3
Avg EPS beat(8)-0.26%
EPS beat(12)5
Avg EPS beat(12)0.5%
EPS beat(16)7
Avg EPS beat(16)-0.72%
Revenue beat(2)2
Avg Revenue beat(2)4.78%
Min Revenue beat(2)3.82%
Max Revenue beat(2)5.74%
Revenue beat(4)4
Avg Revenue beat(4)5.74%
Min Revenue beat(4)3.82%
Max Revenue beat(4)7.23%
Revenue beat(8)8
Avg Revenue beat(8)3.6%
Revenue beat(12)11
Avg Revenue beat(12)3.28%
Revenue beat(16)11
Avg Revenue beat(16)0.58%
PT rev (1m)-0.48%
PT rev (3m)-1.12%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 21.94 | ||
| P/S | 5.35 | ||
| P/FCF | N/A | ||
| P/OCF | 13.55 | ||
| P/B | 2.47 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 15.01 |
EPS(TTM)5.47
EY4.04%
EPS(NY)6.17
Fwd EY4.56%
FCF(TTM)-4.65
FCFYN/A
OCF(TTM)9.99
OCFY7.38%
SpS25.33
BVpS54.75
TBVpS48.85
PEG (NY)2.79
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.14% | ||
| ROCE | 6.03% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 4.65% | ||
| OM | 36.48% | ||
| PM (TTM) | 21.91% | ||
| 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%
ROICexcg growth 3Y4.46%
ROICexcg 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-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 338.63% | ||
| Cap/Sales | 57.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.01 |
F-Score6
WACC7.4%
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)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
EPS Next Y8.86%
EPS Next 2Y7.9%
EPS Next 3Y7.41%
EPS Next 5Y7.26%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
Revenue Next Year8.72%
Revenue Next 2Y7.39%
Revenue Next 3Y7.06%
Revenue Next 5Y6.4%
EBIT growth 1Y16.17%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year64.18%
EBIT Next 3Y26.02%
EBIT Next 5Y17.25%
FCF growth 1Y-9.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.93%
OCF growth 3Y12.38%
OCF growth 5Y8.14%