AWK Stock Analysis: American Water Works | NYSE
Utilities - Regulated Water | NYSE, USA | Market Cap: 26.906m USD | 12M Return: -2.1% | US0304201033 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 323M
EPS Trend: 96.5%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 9
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
American Water Works Company, Inc. (NYSE: AWK) is the holding company for the largest regulated water and wastewater utility operations in the United States, serving approximately 3.6 million active customers across 14 states. Through its subsidiaries, the company provides water and wastewater services directly to residential, commercial, industrial, and public-authority customers, and also operates and manages facilities on military installations and under municipal contract. Its infrastructure footprint described in this filing includes roughly 80 surface water treatment plants, 520 groundwater treatment plants, 170 wastewater treatment plants, 55,000 miles of mains and pipes, and 1,800 pumping stations. The company was founded in 1886 and is headquartered in Camden, New Jersey.
The U.S. water utility sub-sector is structured as a regulated, rate-based business in which returns are largely determined by state public utility commissions through authorized rates of return on invested capital, creating predictable, long-duration cash flows tied to essential service demand. Operators in this segment are capital-intensive, with continuous investment in mains, treatment capacity, and treatment-quality compliance required under the federal Safe Drinking Water Act and Clean Water Act frameworks.
- Pennsylvania rate case outcome lifts allowed return on equity
- Multi-billion capital plan expands regulated rate base
- Rising interest costs pressure infrastructure financing margins
| Net Income: 1.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 0.08 > 1.0 |
| NWC/Revenue: -29.52% < 20% (prev -52.45%; Δ 22.93% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.33b > Net Income 1.13b |
| Net Debt (15.9b) to EBITDA (2.87b): 5.56 < 3 |
| Current Ratio: 0.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (196.0m) vs 12m ago 0.51% < -2% |
| Gross Margin: 47.20% > 18% (prev 60.28%; Δ -13.08% > 0.5%) |
| Asset Turnover: 15.02% > 50% (prev 14.57%; Δ 0.45% > 0%) |
| Interest Coverage Ratio: 2.97 > 6 (EBIT TTM 1.93b / Interest Expense TTM 650.0m) |
| A: -0.04 (Total Current Assets 1.71b - Total Current Liabilities 3.27b) / Total Assets 36.5b |
| B: 0.08 (Retained Earnings 2.91b / Total Assets 36.5b) |
| C: 0.05 (EBIT TTM 1.93b / Avg Total Assets 35.2b) |
| D: 0.47 (Book Value of Equity 11.7b / Total Liabilities 24.8b) |
| Altman-Z'' = 0.84 = B |
| DSRI: 0.59 (Receivables 554.0m/883.0m, Revenue 5.28b/4.94b) |
| GMI: 1.28 (GM 60.28% / 47.20%) |
| AQI: 0.75 (AQ_t 0.08 / AQ_t-1 0.10) |
| SGI: 1.07 (Revenue 5.28b / 4.94b) |
| TATA: -0.03 (NI 1.13b - CFO 2.33b) / TA 36.5b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of August 26, 2026, the stock is trading at USD 137.60 with a total of 1,939,560 shares traded. Over the past week, the price has changed by +0.98%, over one month by +2.94%, over three months by +11.84% and over the past year by -2.11%.
Current recommended Stop Loss: 133.20 (which is 3.2% or 1.4 ATR below the current price).
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 | 140.4 | 2% |
P/E Trailing = 23.4645
P/E Forward = 22.3214
P/S = 5.092
P/B = 2.3066
P/EG = 2.6241
Revenue TTM = 5.28b USD
EBIT TTM = 1.93b USD
EBITDA TTM = 2.87b USD
Long Term Debt = 14.0b USD (from longTermDebt, last quarter)
Short Term Debt = 1.95b USD (from shortTermDebt, last quarter)
Debt = 16.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 70.0m
Net Debt = 15.9b USD (calculated: Debt 16.1b - CCE 191.0m)
Enterprise Value = 42.8b USD (26.9b + Debt 16.1b - CCE 191.0m)
Interest Coverage Ratio = 2.97 (Ebit TTM 1.93b / Interest Expense TTM 650.0m)
EV/FCF = -41.60x (Enterprise Value 42.8b / FCF TTM -1.03b)
FCF Yield = -2.40% (FCF TTM -1.03b / Enterprise Value 42.8b)
FCF Margin = -19.49% (FCF TTM -1.03b / Revenue TTM 5.28b)
Net Margin = 21.35% (Net Income TTM 1.13b / Revenue TTM 5.28b)
Gross Margin = 47.20% ((Revenue TTM 5.28b - Cost of Revenue TTM 2.79b) / Revenue TTM)
Gross Margin QoQ = 75.50% (prev 59.15%)
Tobins Q-Ratio = 1.18 (Enterprise Value 42.8b / Total Assets 36.5b)
Interest Expense / Debt = 4.03% (Interest Expense 650.0m / Debt 16.1b)
Taxrate = 21.67% (312.0m / 1.44b)
NOPAT = 1.51b (EBIT 1.93b * (1 - 21.67%))
Current Ratio = 0.52 (Total Current Assets 1.71b / Total Current Liabilities 3.27b)
Debt / Equity = 1.38 (Debt 16.1b / totalStockholderEquity, last quarter 11.7b)
Debt / EBITDA = 5.56 (Net Debt 15.9b / EBITDA 2.87b)
Debt / FCF = -15.48 (negative FCF - burning cash) (Net Debt 15.9b / FCF TTM -1.03b)
Total Stockholder Equity = 11.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.21% (Net Income 1.13b / Total Assets 36.5b)
RoE = 10.15% (Net Income TTM 1.13b / Total Stockholder Equity 11.1b)
RoCE = 7.68% (EBIT 1.93b / Capital Employed (Equity 11.1b + L.T.Debt 14.0b))
RoIC = 4.33% (NOPAT 1.51b / Invested Capital 34.9b)
WACC = 3.53% (E(26.9b)/V(43.0b) * Re(3.75%) + D(16.1b)/V(43.0b) * Rd(4.03%) * (1-Tc(0.22)))
Discount Rate = 3.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 52.22 | Cagr: 0.23%
[DCF] Fair Price = unknown (Cash Flow -1.03b)
EPS Correlation: 96.50 | EPS CAGR: 8.18% | SUE: 0.26 | # QB: 0
Revenue Correlation: 99.27 | Revenue CAGR: 10.06% | SUE: 2.00 | # QB: 9
EPS current Quarter (2026-09-30): EPS=2.07 | Chg30d=-0.86% | Revisions=+17% | Analysts=5
EPS current Year (2026-12-31): EPS=6.08 | Chg30d=+0.04% | Revisions=+0% | GrowthEPS=+7.9% | GrowthRev=+5.0%
EPS next Year (2027-12-31): EPS=6.57 | Chg30d=+0.11% | Revisions=+25% | GrowthEPS=+7.9% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +29% (up=3, down=1)