AMERICAN WATER WORKS CO INC (AWK) Fundamental Analysis & Valuation

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

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

NYSE:AWK • US0304201033

127.38 USD

-1.04 (-0.81%)

At close: May 1, 2026

127.407 USD

+0.03 (+0.02%)

After Hours: 5/1/2026, 8:10:41 PM

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.
In the past year AWK had a positive cash flow from operations.
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

AWK has a Return On Assets of 3.13%. This is in the better half of the industry: AWK outperforms 64.29% of its industry peers.
AWK has a better Return On Equity (10.25%) than 85.71% of its industry peers.
AWK has a Return On Invested Capital of 4.52%. 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 4.34%. This is in line with the industry average of 4.59%.
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

Looking at the Profit Margin, with a value of 21.61%, 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.
AWK has a better Operating Margin (36.56%) than 85.71% of its industry peers.
AWK's Operating Margin has improved in the last couple of years.

		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

More info and screens

ROA ROE ROIC Operating and Profit Margin Show most profitable peers

2. AWK Health Analysis

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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

Based on the Altman-Z score of 0.95, we must say that AWK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AWK (0.95) is comparable to the rest of the industry.
AWK has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, AWK is doing worse than 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.33
Debt/FCF	N/A
Altman-Z	0.95

ROIC/WACC0.67

WACC6.75%

2.3 Liquidity

AWK has a Current 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 worse Current ratio (0.46) than 85.71% of its industry peers.
A Quick Ratio of 0.44 indicates that AWK may have some problems paying its short term obligations.
AWK's Quick ratio of 0.44 is on the low side compared to the rest of the industry. AWK is outperformed by 85.71% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.46
Quick Ratio	0.44

More info and screens

WACC Debt/Equity How to determine the health of a company Altman-Z score Show peers with great health

3. AWK Growth Analysis

3.1 Past

AWK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.84%.
Measured over the past 5 years, AWK shows a small growth in Earnings Per Share. The EPS has been growing by 7.74% on average per year.
The Revenue has grown by 9.74% in the past year. This is quite good.
AWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.

EPS 1Y (TTM)4.84%

EPS 3Y8.52%

EPS 5Y7.74%

EPS Q2Q%-0.98%

Revenue 1Y (TTM)9.74%

Revenue growth 3Y10.67%

Revenue growth 5Y6.36%

Sales Q2Q%5.69%

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 8.26% on average per year.
Based on estimates for the next years, AWK will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.

EPS Next Y8.79%

EPS Next 2Y8.31%

EPS Next 3Y8.33%

EPS Next 5Y8.26%

Revenue Next Year7.34%

Revenue Next 2Y7.12%

Revenue Next 3Y6.96%

Revenue Next 5Y7.82%

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.

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4. AWK Valuation Analysis

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.55, which indicates a rather expensive current valuation of AWK.
Compared to the rest of the industry, the Price/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.
When comparing the Price/Earnings ratio of AWK to the average of the S&P500 Index (26.64), we can say AWK is valued inline with the index average.
A Price/Forward Earnings ratio of 19.18 indicates a rather expensive valuation of AWK.
AWK's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.36. AWK is around the same levels.

		Industry Rank	Sector Rank
PE	22.55
Fwd PE	19.18

4.2 Price Multiples

AWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AWK is cheaper than 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.15

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.
The decent profitability rating of AWK may justify a higher PE ratio.

PEG (NY)2.57

PEG (5Y)2.91

EPS Next 2Y8.31%

EPS Next 3Y8.33%

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Price/Earnings Price/FCF FCF per share EV/EBITDA PEG RATIO Show best valued peers

5. AWK Dividend Analysis

5.1 Amount

With a Yearly Dividend Yield of 2.79%, AWK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, AWK has a dividend in line with its industry peers.
AWK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.79%

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 2Y8.31%

EPS Next 3Y8.33%

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AWK Fundamentals: All Metrics, Ratios and Statistics

AMERICAN WATER WORKS CO INC

NYSE:AWK (5/1/2026, 8:10:41 PM)

After market: 127.407 +0.03 (+0.02%)

127.38

-1.04 (-0.81%)

Chartmill FA Rating

GICS SectorUtilities

GICS IndustryGroupUtilities

GICS IndustryWater Utilities

Industry Strength26.09

Industry Growth9.94

Earnings (Last)04-29 2026-04-29/amc

Earnings (Next)07-29 2026-07-29

Inst Owners99.59%

Inst Owner Change-0.7%

Ins Owners0.07%

Ins Owner Change2.98%

Market Cap24.87B

Revenue(TTM)5.14B

Net Income(TTM)1.11B

Analysts67.06

Price Target143.06 (12.31%)

Short Float %5.13%

Short Ratio5.17

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.79%

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)-0.01%

PT rev (3m)-2.56%

EPS NQ rev (1m)-2.32%

EPS NQ rev (3m)-1.98%

EPS NY rev (1m)0.06%

EPS NY rev (3m)-0.13%

Revenue NQ rev (1m)-6.36%

Revenue NQ rev (3m)0.08%

Revenue NY rev (1m)0.39%

Revenue NY rev (3m)-0.44%

Valuation

		Industry Rank	Sector Rank
PE	22.55
Fwd PE	19.18
P/S	4.84
P/FCF	N/A
P/OCF	12.08
P/B	2.3
P/tB	2.57
EV/EBITDA	14.15

EPS(TTM)5.65

EY4.44%

EPS(NY)6.64

Fwd EY5.21%

FCF(TTM)-5.46

FCFYN/A

OCF(TTM)10.54

OCFY8.28%

SpS26.32

BVpS55.49

TBVpS49.58

PEG (NY)2.57

PEG (5Y)2.91

Graham Number83.9926 (-34.06%)

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	0.95

F-Score6

WACC6.75%

ROIC/WACC0.67

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)4.84%

EPS 3Y8.52%

EPS 5Y7.74%

EPS Q2Q%-0.98%

EPS Next Y8.79%

EPS Next 2Y8.31%

EPS Next 3Y8.33%

EPS Next 5Y8.26%

Revenue 1Y (TTM)9.74%

Revenue growth 3Y10.67%

Revenue growth 5Y6.36%

Sales Q2Q%5.69%

Revenue Next Year7.34%

Revenue Next 2Y7.12%

Revenue Next 3Y6.96%

Revenue Next 5Y7.82%

EBIT growth 1Y9.37%

EBIT growth 3Y13.86%

EBIT growth 5Y8.53%

EBIT Next Year64.29%

EBIT Next 3Y27.2%

EBIT Next 5Y19.3%

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 6 / 10 and the dividend payout ratio is 56.98%.