AMERICAN WATER WORKS CO INC (AWK) Fundamental Analysis & Valuation
NYSE:AWK • US0304201033
Current stock price
136.36 USD
+0.99 (+0.73%)
At close:
136.43 USD
+0.07 (+0.05%)
Pre-Market:
This AWK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AWK Profitability Analysis
1.1 Basic Checks
- In the past year AWK was profitable.
- AWK had a positive operating cash flow in the past year.
- In the past 5 years AWK has always been profitable.
- Each year in the past 5 years AWK had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.13%, AWK is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- The Return On Equity of AWK (10.25%) is better than 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, AWK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- AWK had an Average Return On Invested Capital over the past 3 years of 4.34%. This is in line with the industry average of 4.53%.
- The 3 year average ROIC (4.34%) for AWK is below the current ROIC(4.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 10.25% | ||
| ROIC | 4.52% |
ROA(3y)3.15%
ROA(5y)3.45%
ROE(3y)10.02%
ROE(5y)11.61%
ROIC(3y)4.34%
ROIC(5y)4.12%
1.3 Margins
- AWK has a Profit Margin of 21.61%. This is in the better half of the industry: AWK outperforms 64.29% of its industry peers.
- AWK's Profit Margin has improved in the last couple of years.
- AWK's Operating Margin of 36.56% is amongst the best of the industry. AWK outperforms 92.86% of its industry peers.
- In the last couple of years the Operating Margin of AWK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.56% | ||
| PM (TTM) | 21.61% | ||
| GM | N/A |
OM growth 3Y2.88%
OM growth 5Y2.04%
PM growth 3Y-0.01%
PM growth 5Y2.86%
GM growth 3YN/A
GM growth 5YN/A
2. AWK Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AWK is destroying value.
- AWK has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AWK has more shares outstanding
- AWK has a worse debt/assets ratio than last year.
2.2 Solvency
- AWK has an Altman-Z score of 0.98. This is a bad value and indicates that AWK is not financially healthy and even has some risk of bankruptcy.
- AWK's Altman-Z score of 0.98 is in line compared to the rest of the industry. AWK outperforms 57.14% of its industry peers.
- AWK has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
- AWK has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: AWK underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.62
WACC7.32%
2.3 Liquidity
- A Current Ratio of 0.46 indicates that AWK may have some problems paying its short term obligations.
- The Current ratio of AWK (0.46) is worse than 85.71% of its industry peers.
- AWK has a Quick Ratio of 0.46. 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 Quick ratio of 0.44. This is amonst the worse of the industry: AWK underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.44 |
3. AWK Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.81% over the past year.
- The Earnings Per Share has been growing slightly by 7.74% on average over the past years.
- The Revenue has grown by 9.74% 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 6.36% on average per year.
EPS 1Y (TTM)6.81%
EPS 3Y8.52%
EPS 5Y7.74%
EPS Q2Q%1.75%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y10.67%
Revenue growth 5Y6.36%
Sales Q2Q%5.83%
3.2 Future
- Based on estimates for the next years, AWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
- AWK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y8.72%
EPS Next 2Y8.22%
EPS Next 3Y8.17%
EPS Next 5Y8.07%
Revenue Next Year7.07%
Revenue Next 2Y7.03%
Revenue Next 3Y6.96%
Revenue Next 5Y8.51%
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.
4. AWK Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.09, the valuation of AWK can be described as rather expensive.
- 64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.91. AWK is around the same levels.
- A Price/Forward Earnings ratio of 22.16 indicates a rather expensive valuation of AWK.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AWK indicates a slightly more expensive valuation: AWK is more expensive than 64.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, AWK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 22.16 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.71 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWK does not grow enough to justify the current Price/Earnings ratio.
- AWK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)3.11
EPS Next 2Y8.22%
EPS Next 3Y8.17%
5. AWK Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.42%, AWK has a reasonable but not impressive dividend return.
- AWK's Dividend Yield is slightly below the industry average, which is at 3.02.
- AWK's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
- The dividend of AWK is nicely growing with an annual growth rate of 8.59%!
- AWK has paid a dividend for at least 10 years, which is 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)8.59%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- AWK pays out 56.98% 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.
DP56.98%
EPS Next 2Y8.22%
EPS Next 3Y8.17%
AWK Fundamentals: All Metrics, Ratios and Statistics
136.36
+0.99 (+0.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-28 2026-04-28
Inst Owners99.27%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change2.98%
Market Cap26.62B
Revenue(TTM)5.14B
Net Income(TTM)1.11B
Analysts67.06
Price Target140.57 (3.09%)
Short Float %5.1%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend3.25
Dividend Growth(5Y)8.59%
DP56.98%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-10 2026-02-10 (0.8275)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.59%
Min EPS beat(2)-3.49%
Max EPS beat(2)2.31%
EPS beat(4)1
Avg EPS beat(4)-2%
Min EPS beat(4)-3.67%
Max EPS beat(4)2.31%
EPS beat(8)2
Avg EPS beat(8)-2.14%
EPS beat(12)5
Avg EPS beat(12)0.45%
EPS beat(16)8
Avg EPS beat(16)1.24%
Revenue beat(2)1
Avg Revenue beat(2)2.03%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)6.3%
Revenue beat(4)3
Avg Revenue beat(4)3.41%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)6.3%
Revenue beat(8)7
Avg Revenue beat(8)3.88%
Revenue beat(12)11
Avg Revenue beat(12)3.63%
Revenue beat(16)12
Avg Revenue beat(16)1.98%
PT rev (1m)-0.65%
PT rev (3m)-1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.88%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 22.16 | ||
| P/S | 5.18 | ||
| P/FCF | N/A | ||
| P/OCF | 12.93 | ||
| P/B | 2.46 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 14.71 |
EPS(TTM)5.66
EY4.15%
EPS(NY)6.15
Fwd EY4.51%
FCF(TTM)-5.47
FCFYN/A
OCF(TTM)10.55
OCFY7.74%
SpS26.33
BVpS55.51
TBVpS49.59
PEG (NY)2.76
PEG (5Y)3.11
Graham Number84.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 10.25% | ||
| ROCE | 6.12% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.71% | ||
| OM | 36.56% | ||
| PM (TTM) | 21.61% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.15%
ROA(5y)3.45%
ROE(3y)10.02%
ROE(5y)11.61%
ROIC(3y)4.34%
ROIC(5y)4.12%
ROICexc(3y)4.37%
ROICexc(5y)4.14%
ROICexgc(3y)4.54%
ROICexgc(5y)4.32%
ROCE(3y)5.75%
ROCE(5y)5.47%
ROICexgc growth 3Y5.84%
ROICexgc growth 5Y0.32%
ROICexc growth 3Y6.13%
ROICexc growth 5Y1.14%
OM growth 3Y2.88%
OM growth 5Y2.04%
PM growth 3Y-0.01%
PM growth 5Y2.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 349.66% | ||
| Cap/Sales | 60.82% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 74.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.98 |
F-Score6
WACC7.32%
ROIC/WACC0.62
Cap/Depr(3y)359.29%
Cap/Depr(5y)341.83%
Cap/Sales(3y)60.87%
Cap/Sales(5y)57.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.81%
EPS 3Y8.52%
EPS 5Y7.74%
EPS Q2Q%1.75%
EPS Next Y8.72%
EPS Next 2Y8.22%
EPS Next 3Y8.17%
EPS Next 5Y8.07%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y10.67%
Revenue growth 5Y6.36%
Sales Q2Q%5.83%
Revenue Next Year7.07%
Revenue Next 2Y7.03%
Revenue Next 3Y6.96%
Revenue Next 5Y8.51%
EBIT growth 1Y9.37%
EBIT growth 3Y13.86%
EBIT growth 5Y8.53%
EBIT Next Year65.33%
EBIT Next 3Y25.97%
EBIT Next 5Y20.25%
FCF growth 1Y-31.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.68%
OCF growth 3Y22.94%
OCF growth 5Y7.62%
AMERICAN WATER WORKS CO INC / AWK Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for AMERICAN WATER WORKS CO INC?
ChartMill assigns a fundamental rating of 4 / 10 to AWK.
What is the valuation status of AMERICAN WATER WORKS CO INC (AWK) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN WATER WORKS CO INC (AWK). This can be considered as Overvalued.
How profitable is AMERICAN WATER WORKS CO INC (AWK) stock?
AMERICAN WATER WORKS CO INC (AWK) has a profitability rating of 7 / 10.
Can you provide the financial health for AWK stock?
The financial health rating of AMERICAN WATER WORKS CO INC (AWK) is 0 / 10.
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 56.98%.