(AWK) American Water Works - NYSE
Sector: Utilities | Industry: Utilities - Regulated Water | Exchange: NYSE (USA) | Market Cap: 24.307m USD | Total Return: -9.2% in 12m
Avg Turnover: 213M
EPS Trend: 97.0%
Qual. Beats: -1
Rev. Trend: 99.5%
Qual. Beats: 8
Warnings
High Debt while negative Cash Flow
Altman Z'' 0.62 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
American Water Works Company, Inc. is the largest investor-owned water and wastewater utility in the United States, operating across 14 states with a customer base of approximately 3.6 million. Founded in 1886, the company manages an extensive infrastructure network including over 500 groundwater treatment plants, 55,000 miles of piping, and specialized service contracts for military installations and municipal facilities.
The business model relies on a regulated utility framework, where capital investments in infrastructure-such as the companys 75 dams and 1,800 pumping stations-are typically recovered through rate cases approved by state commissions. Water utilities generally benefit from high barriers to entry and consistent demand profiles, as water services are essential and lack viable substitutes for residential, industrial, and public sector consumers.
Investors can further examine the companys valuation metrics and dividend history on ValueRay. Given the capital-intensive nature of the sector, the firms ability to maintain and upgrade its treatment plants and distribution mains remains a primary driver of long-term revenue growth.
- Rate base growth through multi-billion dollar annual capital investment in aging infrastructure
- Regulatory approval of frequent rate cases drives predictable revenue and earnings growth
- Strategic acquisitions of municipal water and wastewater systems expand the customer base
- Rising interest rates increase financing costs for capital-intensive infrastructure projects and debt
- Compliance with tightening EPA regulations on PFAS and water quality impacts operational expenses
| Net Income: 1.10b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -0.76 > 1.0 |
| NWC/Revenue: -49.84% < 20% (prev -26.02%; Δ -23.81% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.03b > Net Income 1.10b |
| Net Debt (15.6b) to EBITDA (2.77b): 5.64 < 3 |
| Current Ratio: 0.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (195.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 43.55% > 18% (prev 60.33%; Δ -16.78% > 0.5%) |
| Asset Turnover: 15.21% > 50% (prev 14.52%; Δ 0.69% > 0%) |
| Interest Coverage Ratio: 2.93 > 6 (EBIT TTM 1.86b / Interest Expense TTM 634.0m) |
| A: -0.07 (Total Current Assets 1.52b - Total Current Liabilities 4.12b) / Total Assets 35.3b |
| B: 0.08 (Retained Earnings 2.77b / Total Assets 35.3b) |
| C: 0.05 (EBIT TTM 1.86b / Avg Total Assets 34.2b) |
| D: 0.46 (Book Value of Equity 11.0b / Total Liabilities 24.2b) |
| Altman-Z'' = 0.62 = B |
| DSRI: 1.19 (Receivables 949.0m/735.0m, Revenue 5.21b/4.82b) |
| GMI: 1.39 (GM 60.33% / 43.55%) |
| AQI: 0.69 (AQ_t 0.07 / AQ_t-1 0.11) |
| SGI: 1.08 (Revenue 5.21b / 4.82b) |
| TATA: -0.03 (NI 1.10b - CFO 2.03b) / TA 35.3b) |
| Beneish M = -2.64 (Cap -4..+1) = A |
As of June 13, 2026, the stock is trading at USD 124.45 with a total of 1,730,548 shares traded.
Over the past week, the price has changed by +1.80%,
over one month by -0.53%,
over three months by -6.70% and
over the past year by -9.16%.
American Water Works has received a consensus analysts rating of 3.38. Therefore, it is recommended to hold AWK.
- StrongBuy: 3
- Buy: 0
- Hold: 9
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 135.7 | 9.1% |
P/E Trailing = 22.0691
P/E Forward = 20.5339
P/S = 4.6698
P/B = 2.2023
P/EG = 2.2448
Revenue TTM = 5.21b USD
EBIT TTM = 1.86b USD
EBITDA TTM = 2.77b USD
Long Term Debt = 12.8b USD (from longTermDebt, last quarter)
Short Term Debt = 2.86b USD (from shortTermDebt, last quarter)
Debt = 15.8b USD (from shortLongTermDebtTotal, last quarter) + Leases 72.0m
Net Debt = 15.6b USD (calculated: Debt 15.8b - CCE 137.0m)
Enterprise Value = 39.9b USD (24.3b + Debt 15.8b - CCE 137.0m)
Interest Coverage Ratio = 2.93 (Ebit TTM 1.86b / Interest Expense TTM 634.0m)
EV/FCF = -33.17x (Enterprise Value 39.9b / FCF TTM -1.20b)
FCF Yield = -3.01% (FCF TTM -1.20b / Enterprise Value 39.9b)
FCF Margin = -23.13% (FCF TTM -1.20b / Revenue TTM 5.21b)
Net Margin = 21.17% (Net Income TTM 1.10b / Revenue TTM 5.21b)
Gross Margin = 43.55% ((Revenue TTM 5.21b - Cost of Revenue TTM 2.94b) / Revenue TTM)
Gross Margin QoQ = 59.15% (prev -13.45%)
Tobins Q-Ratio = 1.13 (Enterprise Value 39.9b / Total Assets 35.3b)
Interest Expense / Debt = 4.02% (Interest Expense 634.0m / Debt 15.8b)
Taxrate = 21.90% (309.0m / 1.41b)
NOPAT = 1.45b (EBIT 1.86b * (1 - 21.90%))
Current Ratio = 0.37 (Total Current Assets 1.52b / Total Current Liabilities 4.12b)
Debt / Equity = 1.43 (Debt 15.8b / totalStockholderEquity, last quarter 11.0b)
Debt / EBITDA = 5.64 (Net Debt 15.6b / EBITDA 2.77b)
Debt / FCF = -12.98 (negative FCF - burning cash) (Net Debt 15.6b / FCF TTM -1.20b)
Total Stockholder Equity = 10.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.22% (Net Income 1.10b / Total Assets 35.3b)
RoE = 10.14% (Net Income TTM 1.10b / Total Stockholder Equity 10.9b)
RoCE = 7.85% (EBIT 1.86b / Capital Employed (Equity 10.9b + L.T.Debt 12.8b))
RoIC = 4.28% (NOPAT 1.45b / Invested Capital 33.9b)
WACC = 3.74% (E(24.3b)/V(40.1b) * Re(4.13%) + D(15.8b)/V(40.1b) * Rd(4.02%) * (1-Tc(0.22)))
Discount Rate = 4.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Fair Price = unknown (Cash Flow -1.20b)
EPS Correlation: 96.97 | EPS CAGR: 8.40% | SUE: -1.11 | # QB: -1
Revenue Correlation: 99.49 | Revenue CAGR: 10.30% | SUE: 2.19 | # QB: 8
EPS current Quarter (2026-06-30): EPS=1.59 | Chg30d=+1.05% | Revisions=+14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.07 | Chg30d=+1.77% | Revisions=+14% | Analysts=5
EPS current Year (2026-12-31): EPS=6.08 | Chg30d=-0.20% | Revisions=-33% | GrowthEPS=+7.8% | GrowthRev=+5.3%
EPS next Year (2027-12-31): EPS=6.56 | Chg30d=-0.26% | Revisions=-43% | GrowthEPS=+7.8% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: -43%