AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
FRA:AWC - Deutsche Boerse Ag - US0304201033 - Common Stock - Currency: EUR
AWC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AWC had positive earnings in the past year.
In the past year AWC had a positive cash flow from operations.
Each year in the past 5 years AWC has been profitable.
In the past 5 years AWC always reported a positive cash flow from operatings.
1.2 Ratios
AWC's Return On Assets of 3.23% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
AWC's Return On Equity of 10.17% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
AWC has a better Return On Invested Capital (4.34%) than 100.00% of its industry peers.
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 3 year average ROIC (4.11%) for AWC is below the current ROIC(4.34%), indicating increased profibility in the last year.
| 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
The Profit Margin of AWC (22.24%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of AWC has grown nicely.
With an excellent Operating Margin value of 36.61%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AWC has grown nicely.
| 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
AWC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AWC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AWC has more shares outstanding
AWC has a worse debt/assets ratio than last year.
2.2 Solvency
AWC has an Altman-Z score of 1.11. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
AWC's Altman-Z score of 1.11 is amongst the best of 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.
The Debt to Equity ratio of AWC (1.36) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.55
WACC7.91%
2.3 Liquidity
AWC has a Current 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 has a Current ratio of 0.49. This is in the better half of the industry: AWC outperforms 75.00% of its industry peers.
A Quick Ratio of 0.44 indicates that AWC may have some problems paying its short term obligations.
The Quick ratio of AWC (0.44) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.52% over the past year.
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.
AWC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.79%.
Measured over the past years, AWC shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
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
Based on estimates for the next years, AWC will show a small growth in Earnings Per Share. The EPS will grow by 7.29% on average per year.
The Revenue is expected to grow by 6.99% on average over the next years.
EPS Next Y8.74%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
EPS Next 5Y7.29%
Revenue Next Year9.85%
Revenue Next 2Y8.04%
Revenue Next 3Y8.46%
Revenue Next 5Y6.99%
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
With a Price/Earnings ratio of 26.42, AWC can be considered very expensive at the moment.
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.
The average S&P500 Price/Earnings ratio is at 26.25. AWC is around the same levels.
A Price/Forward Earnings ratio of 22.98 indicates a rather expensive valuation of AWC.
AWC's Price/Forward 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/Forward Earnings ratio of AWC to the average of the S&P500 Index (22.15), we can say AWC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 22.98 |
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 | 15.93 |
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 excellent profitability rating of AWC may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)3.31
EPS Next 2Y8.1%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, AWC pays a better dividend. On top of this AWC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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.
AWC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.65%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
FRA:AWC (5/30/2025, 7:00:00 PM)
125.5
+1.65 (+1.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap24.47B
Analysts55.65
Price Target128.85 (2.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend2.65
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)2.24%
PT rev (3m)-1.78%
EPS NQ rev (1m)3.83%
EPS NQ rev (3m)22.07%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)4.52%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 22.98 | ||
| P/S | 5.76 | ||
| P/FCF | N/A | ||
| P/OCF | 13.92 | ||
| P/B | 2.63 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 15.93 |
EPS(TTM)4.75
EY3.78%
EPS(NY)5.46
Fwd EY4.35%
FCF(TTM)-3.62
FCFYN/A
OCF(TTM)9.02
OCFY7.19%
SpS21.78
BVpS47.64
TBVpS42.47
PEG (NY)3.02
PEG (5Y)3.31
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 | 1.11 |
F-Score6
WACC7.91%
ROIC/WACC0.55
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 Y8.74%
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 Year9.85%
Revenue Next 2Y8.04%
Revenue Next 3Y8.46%
Revenue Next 5Y6.99%
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%