AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AWC - US0304201033 - Common Stock
112.15 EUR
+0.35 (+0.31%)
Taking everything into account, AWC scores 5 out of 10 in our fundamental rating. AWC was compared to 4 industry peers in the Water Utilities industry. While AWC belongs to the best of the industry regarding profitability, there are concerns on its financial health. AWC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AWC had positive earnings in the past year.
AWC had a positive operating cash flow in the past year.
In the past 5 years AWC has always been profitable.
Each year in the past 5 years AWC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AWC (3.20%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.20%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.57%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AWC is in line with the industry average of 4.57%.
The 3 year average ROIC (4.11%) for AWC 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
AWC has a Profit Margin of 21.93%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC's Profit Margin has improved in the last couple of years.
AWC has a Operating Margin of 36.96%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of AWC 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWC is destroying value.
Compared to 1 year ago, AWC has about the same amount of shares outstanding.
Compared to 5 years ago, AWC has more shares outstanding
Compared to 1 year ago, AWC has a worse debt to assets ratio.
2.2 Solvency
AWC has an Altman-Z score of 0.99. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AWC has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
AWC has a Debt to Equity ratio of 1.29. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.64
WACC7.11%
2.3 Liquidity
AWC has a Current Ratio of 0.42. This is a bad value and indicates that AWC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AWC (0.42) is better than 75.00% of its industry peers.
AWC has a Quick Ratio of 0.42. This is a bad value and indicates that AWC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AWC (0.39) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
AWC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.35%, which is quite good.
AWC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.98% yearly.
The Revenue has grown by 12.29% in the past year. This is quite good.
AWC 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
Based on estimates for the next years, AWC will show a small growth in Earnings Per Share. The EPS will grow by 7.48% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of AWC.
AWC's Price/Earnings ratio is rather cheap when compared to the industry. AWC is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AWC to the average of the S&P500 Index (26.31), we can say AWC is valued inline with the index average.
AWC is valuated rather expensively with a Price/Forward Earnings ratio of 21.03.
100.00% of the companies in the same industry are more expensive than AWC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, AWC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 21.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.37 |
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)2.57
PEG (5Y)2.88
EPS Next 2Y7.88%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, AWC has a reasonable but not impressive dividend return.
AWC's Dividend Yield is a higher than the industry average which is at 4.92.
Compared to an average S&P500 Dividend Yield of 2.32, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 55.85% 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.
DP55.85%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
FRA:AWC (11/28/2025, 7:00:00 PM)
112.15
+0.35 (+0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.88B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts55.45
Price Target124.04 (10.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend2.6
Dividend Growth(5Y)9.01%
DP55.85%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)1.35%
PT rev (3m)0.35%
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 | 22.98 | ||
| Fwd PE | 21.03 | ||
| P/S | 4.99 | ||
| P/FCF | N/A | ||
| P/OCF | 12.44 | ||
| P/B | 2.32 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 14.37 |
EPS(TTM)4.88
EY4.35%
EPS(NY)5.33
Fwd EY4.76%
FCF(TTM)-4.15
FCFYN/A
OCF(TTM)9.02
OCFY8.04%
SpS22.47
BVpS48.33
TBVpS43.23
PEG (NY)2.57
PEG (5Y)2.88
Graham Number72.85
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
WACC7.11%
ROIC/WACC0.64
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 / AWC.DE FAQ
What is the fundamental rating for AWC stock?
ChartMill assigns a fundamental rating of 5 / 10 to AWC.DE.
What is the valuation status of AMERICAN WATER WORKS CO INC (AWC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN WATER WORKS CO INC (AWC.DE). This can be considered as Fairly Valued.
What is the profitability of AWC stock?
AMERICAN WATER WORKS CO INC (AWC.DE) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for AWC stock?
The Earnings per Share (EPS) of AMERICAN WATER WORKS CO INC (AWC.DE) 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 (AWC.DE) is 4 / 10 and the dividend payout ratio is 55.85%.