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

NYSE:AWK • US0304201033

Current stock price

138.23 USD
-0.89 (-0.64%)
At close:
138.23 USD
0 (0%)
After Hours:

This AWK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AWK Profitability Analysis

1.1 Basic Checks

  • AWK had positive earnings in the past year.
  • AWK had a positive operating cash flow in the past year.
  • AWK had positive earnings in each of the past 5 years.
  • AWK had a positive operating cash flow in each of the past 5 years.
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 2025 0 1B -1B 2B

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.
  • With an excellent Return On Equity value of 10.25%, AWK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • AWK has a better Return On Invested Capital (4.52%) than 71.43% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AWK is in line with the industry average of 4.99%.
  • The 3 year average ROIC (4.34%) for AWK is below the current ROIC(4.52%), indicating increased profibility in the last year.
Industry RankSector 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%
AWK Yearly ROA, ROE, ROICAWK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 21.61%, AWK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
  • AWK's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 36.56%, AWK belongs to the top 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 36.56%
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
AWK Yearly Profit, Operating, Gross MarginsAWK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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0

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.
  • Compared to 1 year ago, AWK has about the same amount of shares outstanding.
  • Compared to 5 years ago, AWK has more shares outstanding
  • 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 2025 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 2025 10B 20B 30B

2.2 Solvency

  • AWK has an Altman-Z score of 1.00. 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 1.00, AWK is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • A Debt/Equity ratio of 1.33 is on the high side and indicates that AWK has dependencies on debt 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 RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 1
ROIC/WACC0.6
WACC7.53%
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 2025 0 2B 4B 6B 8B 10B

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's Current ratio of 0.46 is on the low side compared to the rest of the industry. AWK is outperformed by 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.
  • The Quick ratio of AWK (0.44) is worse than 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.44
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 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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 6.81%.
  • The Earnings Per Share has been growing slightly by 7.74% on average over the past years.
  • AWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
  • AWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
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.
  • Based on estimates for the next years, AWK will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y8.72%
EPS Next 2Y8.22%
EPS Next 3Y8.17%
EPS Next 5Y8.07%
Revenue Next Year6.89%
Revenue Next 2Y7.08%
Revenue Next 3Y6.91%
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.
  • 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 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. AWK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.42, AWK is valued on the expensive side.
  • 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 26.11. AWK is around the same levels.
  • With a Price/Forward Earnings ratio of 22.46, AWK is valued on the expensive side.
  • 64.29% of the companies in the same industry are cheaper than AWK, based on the Price/Forward Earnings ratio.
  • AWK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 24.42
Fwd PE 22.46
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 14.9
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 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)2.8
PEG (5Y)3.16
EPS Next 2Y8.22%
EPS Next 3Y8.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AWK Dividend Analysis

5.1 Amount

  • AWK has a Yearly Dividend Yield of 2.39%.
  • Compared to an average industry Dividend Yield of 2.92, AWK has a dividend in line with its industry peers.
  • AWK's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.39%

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 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

  • 56.98% 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.
DP56.98%
EPS Next 2Y8.22%
EPS Next 3Y8.17%
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 2025 0 500M -500M 1B -1B
AWK Dividend Payout.AWK Dividend Payout, showing the Payout Ratio.AWK Dividend Payout.PayoutRetained Earnings

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AWK Fundamentals: All Metrics, Ratios and Statistics

AMERICAN WATER WORKS CO INC

NYSE:AWK (3/17/2026, 8:04:00 PM)

After market: 138.23 0 (0%)

138.23

-0.89 (-0.64%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners99.27%
Inst Owner Change0.56%
Ins Owners0.09%
Ins Owner Change2.99%
Market Cap26.98B
Revenue(TTM)5.14B
Net Income(TTM)1.11B
Analysts67.06
Price Target141.49 (2.36%)
Short Float %4.92%
Short Ratio5.36
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Yearly Dividend3.25
Dividend Growth(5Y)8.59%
DP56.98%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-10
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%
PT rev (3m)-2.07%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)6.88%
Revenue NQ rev (3m)6.88%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 24.42
Fwd PE 22.46
P/S 5.25
P/FCF N/A
P/OCF 13.11
P/B 2.49
P/tB 2.79
EV/EBITDA 14.9
EPS(TTM)5.66
EY4.09%
EPS(NY)6.15
Fwd EY4.45%
FCF(TTM)-5.47
FCFYN/A
OCF(TTM)10.55
OCFY7.63%
SpS26.33
BVpS55.51
TBVpS49.59
PEG (NY)2.8
PEG (5Y)3.16
Graham Number84.08
Profitability
Industry RankSector 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 RankSector 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 1
F-Score6
WACC7.53%
ROIC/WACC0.6
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 Year6.89%
Revenue Next 2Y7.08%
Revenue Next 3Y6.91%
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.


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 24.42 and the Price/Book (PB) ratio is 2.49.


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%.