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AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis

NYSE:AWK - New York Stock Exchange, Inc. - US0304201033 - Common Stock - Currency: USD

140.48  -2.08 (-1.46%)

Fundamental Rating

3

Overall AWK gets a fundamental rating of 3 out of 10. We evaluated AWK against 14 industry peers in the Water Utilities industry. While AWK is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AWK is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

AWK had positive earnings in the past year.
In the past year AWK had a positive cash flow from operations.
AWK had positive earnings in each of the past 5 years.
Each year in the past 5 years AWK had a positive operating cash flow.
AWK Yearly Net Income VS EBIT VS OCF VS FCFAWK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

AWK has a Return On Assets of 3.23%. This is comparable to the rest of the industry: AWK outperforms 57.14% of its industry peers.
With a decent Return On Equity value of 10.17%, AWK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.34%, AWK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AWK is in line with the industry average of 5.08%.
The last Return On Invested Capital (4.34%) for AWK is above the 3 year average (4.11%), which is a sign of increasing profitability.
Industry RankSector 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%
AWK Yearly ROA, ROE, ROICAWK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

With a decent Profit Margin value of 22.24%, AWK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
AWK's Profit Margin has improved in the last couple of years.
AWK's Operating Margin of 36.61% is fine compared to the rest of the industry. AWK outperforms 71.43% of its industry peers.
AWK's Operating Margin has improved in the last couple of years.
Industry RankSector 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
AWK Yearly Profit, Operating, Gross MarginsAWK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWK is destroying value.
Compared to 1 year ago, AWK has about the same amount of shares outstanding.
AWK has more shares outstanding than it did 5 years ago.
AWK has a worse debt/assets ratio than last year.
AWK Yearly Shares OutstandingAWK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
AWK Yearly Total Debt VS Total AssetsAWK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

AWK has an Altman-Z score of 1.11. This is a bad value and indicates that AWK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.11, AWK is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.36 is on the high side and indicates that AWK has dependencies on debt financing.
AWK has a worse Debt to Equity ratio (1.36) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Altman-Z 1.11
ROIC/WACC0.47
WACC9.2%
AWK Yearly LT Debt VS Equity VS FCFAWK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.49 indicates that AWK may have some problems paying its short term obligations.
AWK has a Current ratio of 0.49. This is amonst the worse of the industry: AWK underperforms 85.71% of its industry peers.
AWK has a Quick Ratio of 0.49. This is a bad value and indicates that AWK is not financially healthy enough and could expect problems in meeting its short term obligations.
AWK has a worse Quick ratio (0.44) than 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.44
AWK Yearly Current Assets VS Current LiabilitesAWK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.52% over the past year.
The Earnings Per Share has been growing slightly by 7.98% on average over the past years.
The Revenue has grown by 11.79% in the past year. This is quite good.
Measured over the past years, AWK 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

The Earnings Per Share is expected to grow by 7.29% on average over the next years.
Based on estimates for the next years, AWK will show a small growth in Revenue. The Revenue will grow by 7.26% on average per year.
EPS Next Y8.88%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
EPS Next 5Y7.29%
Revenue Next Year8.55%
Revenue Next 2Y7.33%
Revenue Next 3Y7.37%
Revenue Next 5Y7.26%

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.
AWK Yearly Revenue VS EstimatesAWK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
AWK Yearly EPS VS EstimatesAWK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.06, the valuation of AWK can be described as expensive.
64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.21, AWK is valued at the same level.
AWK is valuated rather expensively with a Price/Forward Earnings ratio of 22.68.
64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.70. AWK is around the same levels.
Industry RankSector Rank
PE 26.06
Fwd PE 22.68
AWK Price Earnings VS Forward Price EarningsAWK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

64.29% of the companies in the same industry are more expensive than AWK, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.94
AWK Per share dataAWK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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 decent profitability rating of AWK may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)3.26
EPS Next 2Y8.1%
EPS Next 3Y7.49%

5

5. Dividend

5.1 Amount

AWK has a Yearly Dividend Yield of 2.39%.
AWK's Dividend Yield is slightly below the industry average, which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.42, AWK has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.39%

5.2 History

On average, the dividend of AWK grows each year by 9.01%, which is quite nice.
AWK has been paying a dividend for at least 10 years, so it has a reliable track record.
AWK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.01%
Div Incr Years11
Div Non Decr Years11
AWK Yearly Dividends per shareAWK Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

AWK pays out 55.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AWK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.65%
EPS Next 2Y8.1%
EPS Next 3Y7.49%
AWK Yearly Income VS Free CF VS DividendAWK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B
AWK Dividend Payout.AWK Dividend Payout, showing the Payout Ratio.AWK Dividend Payout.PayoutRetained Earnings

AMERICAN WATER WORKS CO INC

NYSE:AWK (7/2/2025, 3:53:09 PM)

140.48

-2.08 (-1.46%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners94.11%
Inst Owner Change1.25%
Ins Owners0.08%
Ins Owner Change4.96%
Market Cap27.40B
Analysts55.65
Price Target145.68 (3.7%)
Short Float %2.86%
Short Ratio4.42
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Yearly Dividend3
Dividend Growth(5Y)9.01%
DP55.65%
Div Incr Years11
Div Non Decr Years11
Ex-Date05-13 2025-05-13 (0.8275)
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)-0.45%
PT rev (3m)4.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.27%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-2.88%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)0.6%
Valuation
Industry RankSector Rank
PE 26.06
Fwd PE 22.68
P/S 5.69
P/FCF N/A
P/OCF 13.74
P/B 2.6
P/tB 2.92
EV/EBITDA 15.94
EPS(TTM)5.39
EY3.84%
EPS(NY)6.19
Fwd EY4.41%
FCF(TTM)-4.11
FCFYN/A
OCF(TTM)10.23
OCFY7.28%
SpS24.69
BVpS54.02
TBVpS48.15
PEG (NY)2.94
PEG (5Y)3.26
Profitability
Industry RankSector 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 RankSector 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
WACC9.2%
ROIC/WACC0.47
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 Y8.88%
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 Year8.55%
Revenue Next 2Y7.33%
Revenue Next 3Y7.37%
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%