AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
FRA:AWC - US0304201033 - Common Stock
121.95 EUR
+0.6 (+0.49%)
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 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.
In the past 5 years AWC always reported a positive cash flow from operatings.
1.2 Ratios
AWC has a Return On Assets of 3.19%. This is amongst the best in the industry. AWC outperforms 100.00% of its industry peers.
AWC has a better Return On Equity (10.14%) than 100.00% of its industry peers.
AWC's Return On Invested Capital of 4.47% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AWC is in line with the industry average of 4.47%.
The 3 year average ROIC (4.11%) for AWC is below the current ROIC(4.47%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 21.91%, 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 Profit Margin of AWC has grown nicely.
The Operating Margin of AWC (36.48%) is better than 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 | 36.48% | ||
| 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
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.
AWC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AWC is higher compared to a year ago.
2.2 Solvency
AWC has an Altman-Z score of 1.05. 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 1.05, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.30 is on the high side and indicates that AWC has dependencies on debt financing.
AWC has a better Debt to Equity ratio (1.30) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.59
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.35 indicates that AWC may have some problems paying its short term obligations.
With a decent Current ratio value of 0.35, AWC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AWC has a Quick Ratio of 0.35. 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 (0.32) is better than 66.67% 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.
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.
The Revenue has grown by 13.37% in the past year. This is quite good.
The Revenue has been growing slightly by 5.35% on average over the past years.
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, AWC 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, AWC 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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.06, the valuation of AWC can be described as expensive.
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 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.12 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 22.69. AWC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.12 |
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 | 15.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AWC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)3.26
EPS Next 2Y7.9%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, AWC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.81, 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 2.45, 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
56.23% of the earnings are spent on dividend by AWC. 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.
DP56.23%
EPS Next 2Y7.9%
EPS Next 3Y7.41%
FRA:AWC (9/5/2025, 7:00:00 PM)
121.95
+0.6 (+0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap23.79B
Analysts55.24
Price Target123.6 (1.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend2.57
Dividend Growth(5Y)9.01%
DP56.23%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-1.98%
PT rev (3m)-3.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.12 | ||
| P/S | 5.63 | ||
| P/FCF | N/A | ||
| P/OCF | 14.27 | ||
| P/B | 2.61 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)4.68
EY3.84%
EPS(NY)5.28
Fwd EY4.33%
FCF(TTM)-3.98
FCFYN/A
OCF(TTM)8.54
OCFY7.01%
SpS21.66
BVpS46.81
TBVpS41.76
PEG (NY)2.94
PEG (5Y)3.26
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 | 1.05 |
F-Score6
WACC7.56%
ROIC/WACC0.59
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%