AMERICAN WATER WORKS CO INC (AWK) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AWK • US0304201033

129.13 USD
+0.13 (+0.1%)
At close: Jan 30, 2026
129.131 USD
0 (0%)
After Hours: 1/30/2026, 5:05:00 PM
Fundamental Rating

4

Overall AWK gets a fundamental rating of 4 out of 10. We evaluated AWK against 14 industry peers in the Water Utilities industry. While AWK belongs to the best of the industry regarding profitability, 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

7

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.
  • Each year in the past 5 years AWK has been profitable.
  • In the past 5 years AWK always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

  • The Return On Assets of AWK (3.20%) is better than 64.29% of its industry peers.
  • With an excellent Return On Equity value of 10.20%, AWK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • AWK has a Return On Invested Capital of 4.57%. This is in the better half of the industry: AWK outperforms 71.43% of its industry peers.
  • AWK had an Average Return On Invested Capital over the past 3 years of 4.11%. This is in line with the industry average of 4.99%.
  • The last Return On Invested Capital (4.57%) for AWK is above the 3 year average (4.11%), which is a sign of increasing profitability.
Industry RankSector 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%
AWK Yearly ROA, ROE, ROICAWK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 21.93%, AWK is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AWK has grown nicely.
  • With an excellent Operating Margin value of 36.96%, AWK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AWK has grown nicely.
Industry RankSector 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
AWK Yearly Profit, Operating, Gross MarginsAWK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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0

2. Health

2.1 Basic Checks

  • AWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • AWK has about the same amout of shares outstanding than it did 1 year ago.
  • AWK has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AWK is higher compared to a year ago.
AWK Yearly Shares OutstandingAWK Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of 0.99, we must say that AWK is in the distress zone and has some risk of bankruptcy.
  • AWK has a Altman-Z score (0.99) which is in line with its industry peers.
  • A Debt/Equity ratio of 1.29 is on the high side and indicates that AWK has dependencies on debt financing.
  • AWK has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: AWK underperforms 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.29
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACC0.6
WACC7.67%
AWK Yearly LT Debt VS Equity VS FCFAWK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.42 indicates that AWK may have some problems paying its short term obligations.
  • With a Current ratio value of 0.42, AWK is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.39 indicates that AWK may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.39, AWK is doing worse than 85.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.39
AWK Yearly Current Assets VS Current LiabilitesAWK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.35% over the past year.
  • Measured over the past 5 years, AWK 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 12.29% 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)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

  • The Earnings Per Share is expected to grow by 7.50% on average over the next years.
  • The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y9.24%
EPS Next 2Y7.86%
EPS Next 3Y7.52%
EPS Next 5Y7.5%
Revenue Next Year10.35%
Revenue Next 2Y8.89%
Revenue Next 3Y8.24%
Revenue Next 5Y7.9%

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 accelerating.
AWK Yearly Revenue VS EstimatesAWK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
AWK Yearly EPS VS EstimatesAWK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.90, AWK is valued on the expensive side.
  • The rest of the industry has a similar Price/Earnings ratio as AWK.
  • Compared to an average S&P500 Price/Earnings ratio of 28.39, AWK is valued at the same level.
  • With a Price/Forward Earnings ratio of 20.94, AWK is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AWK.
  • The average S&P500 Price/Forward Earnings ratio is at 25.72. AWK is around the same levels.
Industry RankSector Rank
PE 22.9
Fwd PE 20.94
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

  • Based on the Enterprise Value to EBITDA ratio, AWK is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.32
AWK Per share dataAWK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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)2.48
PEG (5Y)2.87
EPS Next 2Y7.86%
EPS Next 3Y7.52%

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5

5. Dividend

5.1 Amount

  • AWK has a Yearly Dividend Yield of 2.52%.
  • Compared to an average industry Dividend Yield of 2.93, AWK is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, AWK pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.52%

5.2 History

  • The dividend of AWK is nicely growing with an annual growth rate of 9.01%!
  • AWK has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AWK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.01%
Div Incr Years11
Div Non Decr Years11
AWK Yearly Dividends per shareAWK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 55.85% of the earnings are spent on dividend by AWK. 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.
DP55.85%
EPS Next 2Y7.86%
EPS Next 3Y7.52%
AWK Yearly Income VS Free CF VS DividendAWK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 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

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AMERICAN WATER WORKS CO INC / AWK FAQ

Can you provide the ChartMill fundamental rating for AMERICAN WATER WORKS CO INC?

ChartMill assigns a fundamental rating of 4 / 10 to AWK.


Can you provide the valuation status for AMERICAN WATER WORKS CO INC?

ChartMill assigns a valuation rating of 2 / 10 to AMERICAN WATER WORKS CO INC (AWK). This can be considered as Overvalued.


What is the profitability of AWK stock?

AMERICAN WATER WORKS CO INC (AWK) has a profitability rating of 7 / 10.


What are the PE and PB ratios of AMERICAN WATER WORKS CO INC (AWK) stock?

The Price/Earnings (PE) ratio for AMERICAN WATER WORKS CO INC (AWK) is 22.9 and the Price/Book (PB) ratio is 2.31.


Is the dividend of AMERICAN WATER WORKS CO INC sustainable?

The dividend rating of AMERICAN WATER WORKS CO INC (AWK) is 5 / 10 and the dividend payout ratio is 55.85%.