AMERICAN WATER WORKS CO INC (AWC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AWC - US0304201033 - Common Stock
112.2 EUR
-2 (-1.75%)
Overall AWC gets a fundamental rating of 5 out of 10. We evaluated AWC 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.
In the past year AWC had a positive cash flow from operations.
AWC had positive earnings in each of the past 5 years.
Each year in the past 5 years AWC had a positive operating cash flow.
1.2 Ratios
AWC has a Return On Assets of 3.20%. This is amongst the best in the industry. AWC outperforms 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.
AWC's Return On Invested Capital of 4.57% is amongst the best of the industry. AWC outperforms 100.00% of its industry peers.
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
The Profit Margin of AWC (21.93%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of AWC has grown nicely.
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
Based on the Altman-Z score of 1.00, we must say that AWC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AWC (1.00) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that AWC has dependencies on debt financing.
AWC has a better Debt to Equity ratio (1.29) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.62
WACC7.38%
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.
AWC has a Current ratio of 0.42. This is in the better half of the industry: AWC outperforms 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
The Earnings Per Share has grown by an nice 12.35% over the past year.
The Earnings Per Share has been growing slightly by 7.98% on average over the past years.
AWC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.29%.
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)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
AWC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.31% yearly.
The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
EPS Next 5Y7.31%
Revenue Next Year9.7%
Revenue Next 2Y7.76%
Revenue Next 3Y7.34%
Revenue Next 5Y7.87%
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
Based on the Price/Earnings ratio of 23.04, the valuation of AWC can be described as rather expensive.
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 26.15, AWC is valued at the same level.
A Price/Forward Earnings ratio of 21.06 indicates a rather expensive valuation of AWC.
Based on the Price/Forward Earnings ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AWC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AWC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.38 |
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)2.57
PEG (5Y)2.89
EPS Next 2Y7.88%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
AWC has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.93, AWC pays a bit more dividend than its industry peers.
AWC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of AWC grows each year by 9.01%, which is quite nice.
Dividend Growth(5Y)9.01%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
55.85% of the earnings are spent on dividend by AWC. 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.
DP55.85%
EPS Next 2Y7.88%
EPS Next 3Y7.54%
FRA:AWC (11/26/2025, 7:00:00 PM)
112.2
-2 (-1.75%)
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 Cap21.89B
Revenue(TTM)5.07B
Net Income(TTM)1.11B
Analysts55.45
Price Target124.04 (10.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend2.61
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)-1.04%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 21.06 | ||
| P/S | 5 | ||
| P/FCF | N/A | ||
| P/OCF | 12.45 | ||
| P/B | 2.32 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)4.87
EY4.34%
EPS(NY)5.33
Fwd EY4.75%
FCF(TTM)-4.15
FCFYN/A
OCF(TTM)9.01
OCFY8.03%
SpS22.45
BVpS48.29
TBVpS43.19
PEG (NY)2.57
PEG (5Y)2.89
Graham Number72.74
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 | 1 |
F-Score7
WACC7.38%
ROIC/WACC0.62
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 5Y7.31%
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 5Y7.87%
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%.