AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - FRA:AWC - US0304201033 - Common Stock
122.75 EUR
-2.15 (-1.72%)
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 has a great profitability rating, there are quite some 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
In the past year AWC was profitable.
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
Looking at the Return On Assets, with a value of 3.19%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AWC has a better Return On Equity (10.14%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.47%, AWC belongs to the top 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 4.47%.
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
AWC's Profit Margin of 21.91% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
AWC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 36.48%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AWC'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), 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.
AWC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that AWC is in the distress zone and has some risk of bankruptcy.
AWC has a better Altman-Z score (1.05) than 100.00% of its industry peers.
AWC has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
AWC has a Debt to Equity ratio of 1.30. This is in the better half of the industry: AWC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.55
WACC8.13%
2.3 Liquidity
A Current Ratio of 0.35 indicates that AWC may have some problems paying its short term obligations.
AWC's Current ratio of 0.35 is fine compared to the rest of the industry. AWC outperforms 75.00% of its industry peers.
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.
With a decent Quick ratio value of 0.32, AWC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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.
AWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
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
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
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 Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
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
A Price/Earnings ratio of 26.06 indicates a quite expensive valuation of AWC.
Based on the Price/Earnings ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, AWC is valued at the same level.
With a Price/Forward Earnings ratio of 23.11, AWC is valued on the expensive side.
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 22.99, AWC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.11 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than AWC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.53 |
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.
The excellent profitability rating of AWC may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)3.26
EPS Next 2Y7.88%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.80, AWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 2Y7.88%
EPS Next 3Y7.5%
FRA:AWC (10/23/2025, 7:00:00 PM)
122.75
-2.15 (-1.72%)
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 Cap23.95B
Revenue(TTM)4.94B
Net Income(TTM)1.08B
Analysts55
Price Target122.38 (-0.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend2.59
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)0.03%
PT rev (3m)-2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.11 | ||
| P/S | 5.63 | ||
| P/FCF | N/A | ||
| P/OCF | 14.26 | ||
| P/B | 2.6 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 15.53 |
EPS(TTM)4.71
EY3.84%
EPS(NY)5.31
Fwd EY4.33%
FCF(TTM)-4.01
FCFYN/A
OCF(TTM)8.61
OCFY7.01%
SpS21.81
BVpS47.15
TBVpS42.07
PEG (NY)2.91
PEG (5Y)3.26
Graham Number70.69
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%
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-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
WACC8.13%
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)9.62%
EPS 3Y9.93%
EPS 5Y7.98%
EPS Q2Q%5.71%
EPS Next Y8.94%
EPS Next 2Y7.88%
EPS Next 3Y7.5%
EPS Next 5Y7.26%
Revenue 1Y (TTM)13.37%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%11.05%
Revenue Next Year9.05%
Revenue Next 2Y7.59%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
EBIT growth 1Y16.17%
EBIT growth 3Y12.83%
EBIT growth 5Y7.19%
EBIT Next Year63.83%
EBIT Next 3Y25.59%
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%
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 8.94% 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 56.23%.