AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
FRA:AWC - Deutsche Boerse Ag - US0304201033 - Common Stock - Currency: EUR
Overall AWC gets a fundamental rating of 5 out of 10. We evaluated AWC against 4 industry peers in the Water Utilities industry. AWC scores excellent on profitability, but there are concerns on its financial health. AWC has a correct valuation and a medium 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.
Each year in the past 5 years AWC has been profitable.
AWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.23%, AWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.17%, AWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 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
With an excellent Profit Margin value of 22.24%, 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 (36.61%) is better than 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
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.
The number of shares outstanding for AWC has been increased compared to 5 years ago.
Compared to 1 year ago, AWC has a worse debt to assets ratio.
2.2 Solvency
AWC has an Altman-Z score of 1.10. This is a bad value and indicates that AWC is not financially healthy and even has some risk of bankruptcy.
AWC has a better Altman-Z score (1.10) than 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.
Looking at the Debt to Equity ratio, with a value of 1.36, AWC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.56
WACC7.81%
2.3 Liquidity
A Current Ratio of 0.49 indicates that AWC may have some problems paying its short term obligations.
With a decent Current ratio value of 0.49, AWC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that AWC may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.44, AWC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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.
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
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.
AWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.26% yearly.
EPS Next Y9.01%
EPS Next 2Y7.83%
EPS Next 3Y7.55%
EPS Next 5Y7.29%
Revenue Next Year9.11%
Revenue Next 2Y7.86%
Revenue Next 3Y8.03%
Revenue Next 5Y7.26%
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.
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
The Price/Earnings ratio is 25.98, which means the current valuation is very expensive for AWC.
Based on the Price/Earnings ratio, AWC is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. AWC is around the same levels.
The Price/Forward Earnings ratio is 22.73, which indicates a rather expensive current valuation of AWC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AWC indicates a rather cheap valuation: AWC is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.67. AWC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 22.73 |
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 | 15.76 |
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)2.88
PEG (5Y)3.25
EPS Next 2Y7.83%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, 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 2.30, AWC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
55.65% 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.
DP55.65%
EPS Next 2Y7.83%
EPS Next 3Y7.55%
FRA:AWC (7/25/2025, 7:00:00 PM)
119.5
-0.3 (-0.25%)
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 Cap23.30B
Analysts55.45
Price Target126.1 (5.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend2.56
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)-0.46%
PT rev (3m)0.05%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 22.73 | ||
| P/S | 5.67 | ||
| P/FCF | N/A | ||
| P/OCF | 13.7 | ||
| P/B | 2.59 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 15.76 |
EPS(TTM)4.6
EY3.85%
EPS(NY)5.26
Fwd EY4.4%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.72
OCFY7.3%
SpS21.06
BVpS46.07
TBVpS41.07
PEG (NY)2.88
PEG (5Y)3.25
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 | 1.1 |
F-Score6
WACC7.81%
ROIC/WACC0.56
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 Y9.01%
EPS Next 2Y7.83%
EPS Next 3Y7.55%
EPS Next 5Y7.29%
Revenue 1Y (TTM)11.79%
Revenue growth 3Y6.02%
Revenue growth 5Y5.35%
Sales Q2Q%12.96%
Revenue Next Year9.11%
Revenue Next 2Y7.86%
Revenue Next 3Y8.03%
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%