AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
FRA:AWC - Deutsche Boerse Ag - US0304201033 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to AWC. AWC was compared to 4 industry peers in the Water Utilities industry. AWC has an excellent profitability rating, but there are concerns on its financial health. AWC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AWC was profitable.
In the past year AWC had a positive cash flow from operations.
AWC had positive earnings in each of the past 5 years.
In the past 5 years AWC always reported a positive cash flow from operatings.
1.2 Ratios
AWC has a Return On Assets of 3.23%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC has a Return On Equity of 10.17%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.34%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AWC had an Average Return On Invested Capital over the past 3 years of 4.11%. This is in line with the industry average of 4.34%.
The last Return On Invested Capital (4.34%) for AWC is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 10.17% | ||
| ROIC | 4.34% |
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
AWC has a Profit Margin of 22.24%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of AWC has grown nicely.
AWC's Operating Margin of 36.61% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
AWC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.61% | ||
| PM (TTM) | 22.24% | ||
| 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 AWC is destroying value.
AWC has about the same amout of shares outstanding than it did 1 year ago.
AWC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AWC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that AWC is in the distress zone and has some risk of bankruptcy.
AWC has a Altman-Z score of 1.09. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
AWC has a better Debt to Equity ratio (1.36) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.48
WACC9.11%
2.3 Liquidity
A Current Ratio of 0.49 indicates that AWC may have some problems paying its short term obligations.
AWC has a better Current ratio (0.49) than 75.00% of its industry peers.
AWC has a Quick Ratio of 0.49. This is a bad value and indicates that AWC is not financially healthy enough and could expect problems in meeting its short term obligations.
AWC's Quick ratio of 0.44 is fine compared to the rest of the industry. AWC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
AWC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.52%.
Measured over the past 5 years, AWC 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, AWC shows a quite strong growth in Revenue. The Revenue has grown by 11.79% in the last year.
AWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
EPS 1Y (TTM)6.52%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.68%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%12.96%
3.2 Future
The Earnings Per Share is expected to grow by 7.29% on average over the next years.
AWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.26% yearly.
EPS Next Y8.88%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
EPS Next 5Y7.29%
Revenue Next Year8.55%
Revenue Next 2Y7.33%
Revenue Next 3Y7.37%
Revenue Next 5Y7.26%
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
AWC is valuated quite expensively with a Price/Earnings ratio of 26.11.
100.00% of the companies in the same industry are more expensive than AWC, based on the Price/Earnings ratio.
AWC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.73 indicates a rather expensive valuation of AWC.
Based on the Price/Forward Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. AWC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 22.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWC indicates a rather cheap valuation: AWC is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWC does not grow enough to justify the current Price/Earnings ratio.
AWC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)3.27
EPS Next 2Y8.1%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.39%.
AWC's Dividend Yield is rather good when compared to the industry average which is at 2.39. AWC pays more dividend than 100.00% of the companies in the same industry.
AWC's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of AWC is nicely growing with an annual growth rate of 9.01%!
Dividend Growth(5Y)9.01%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
AWC pays out 55.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AWC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.65%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
FRA:AWC (7/1/2025, 7:00:00 PM)
120.1
+2.45 (+2.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.11%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap23.42B
Analysts55.65
Price Target126.68 (5.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend2.57
Dividend Growth(5Y)9.01%
DP55.65%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.25%
Min EPS beat(2)-3.67%
Max EPS beat(2)6.16%
EPS beat(4)1
Avg EPS beat(4)-1.74%
Min EPS beat(4)-4.73%
Max EPS beat(4)6.16%
EPS beat(8)4
Avg EPS beat(8)1.5%
EPS beat(12)6
Avg EPS beat(12)0.99%
EPS beat(16)8
Avg EPS beat(16)-0.24%
Revenue beat(2)2
Avg Revenue beat(2)6.49%
Min Revenue beat(2)5.74%
Max Revenue beat(2)7.23%
Revenue beat(4)4
Avg Revenue beat(4)5.3%
Min Revenue beat(4)2.04%
Max Revenue beat(4)7.23%
Revenue beat(8)8
Avg Revenue beat(8)4.06%
Revenue beat(12)10
Avg Revenue beat(12)2.48%
Revenue beat(16)10
Avg Revenue beat(16)0.22%
PT rev (1m)-1.69%
PT rev (3m)-1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.27%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-2.88%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 22.73 | ||
| P/S | 5.7 | ||
| P/FCF | N/A | ||
| P/OCF | 13.77 | ||
| P/B | 2.61 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)4.6
EY3.83%
EPS(NY)5.28
Fwd EY4.4%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.72
OCFY7.26%
SpS21.07
BVpS46.09
TBVpS41.08
PEG (NY)2.94
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 10.17% | ||
| ROCE | 5.74% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 4.52% | ||
| OM | 36.61% | ||
| PM (TTM) | 22.24% | ||
| 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 | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.55 | ||
| Cap/Depr | 342.53% | ||
| Cap/Sales | 58.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.09 |
F-Score6
WACC9.11%
ROIC/WACC0.48
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)6.52%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%9.68%
EPS Next Y8.88%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
EPS Next 5Y7.29%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%12.96%
Revenue Next Year8.55%
Revenue Next 2Y7.33%
Revenue Next 3Y7.37%
Revenue Next 5Y7.26%
EBIT growth 1Y14.85%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year66.78%
EBIT Next 3Y27.09%
EBIT Next 5Y18.33%
FCF growth 1Y30.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.94%
OCF growth 3Y12.38%
OCF growth 5Y8.14%