company background image
AWK

American Water Works CompanyNYSE:AWK Stock Report

Market Cap

US$32.1b

7D

-0.7%

1Y

22.6%

Updated

26 Sep, 2021

Data

Company Financials +
AWK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends5/6

AWK Overview

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States.

American Water Works Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for American Water Works Company
Historical stock prices
Current Share PriceUS$176.79
52 Week HighUS$131.01
52 Week LowUS$189.35
Beta0.23
1 Month Change-1.95%
3 Month Change12.37%
1 Year Change22.58%
3 Year Change100.97%
5 Year Change136.22%
Change since IPO758.20%

Recent News & Updates

Shareholder Returns

AWKUS Water UtilitiesUS Market
7D-0.7%0.1%0.1%
1Y22.6%23.2%35.3%

Return vs Industry: AWK matched the US Water Utilities industry which returned 23.2% over the past year.

Return vs Market: AWK underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is AWK's price volatile compared to industry and market?
AWK volatility
AWK Beta0.23
Industry Beta0.32
Market Beta1

Stable Share Price: AWK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AWK's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18867,000Walter Lynchhttps://www.amwater.com

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 16 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, such as food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.

American Water Works Company Fundamentals Summary

How do American Water Works Company's earnings and revenue compare to its market cap?
AWK fundamental statistics
Market CapUS$32.09b
Earnings (TTM)US$749.00m
Revenue (TTM)US$3.89b

42.8x

P/E Ratio

8.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AWK income statement (TTM)
RevenueUS$3.89b
Cost of RevenueUS$1.70b
Gross ProfitUS$2.19b
ExpensesUS$1.44b
EarningsUS$749.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.13
Gross Margin56.34%
Net Profit Margin19.26%
Debt/Equity Ratio164.4%

How did AWK perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is American Water Works Company undervalued compared to its fair value and its price relative to the market?

42.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AWK ($176.79) is trading above our estimate of fair value ($97.23)

Significantly Below Fair Value: AWK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AWK is poor value based on its PE Ratio (42.8x) compared to the US Water Utilities industry average (35.1x).

PE vs Market: AWK is poor value based on its PE Ratio (42.8x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: AWK is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: AWK is overvalued based on its PB Ratio (4.8x) compared to the US Water Utilities industry average (3.1x).


Future Growth

How is American Water Works Company forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWK's forecast earnings growth (9% per year) is above the savings rate (2%).

Earnings vs Market: AWK's earnings (9% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: AWK's earnings are forecast to grow, but not significantly.

Revenue vs Market: AWK's revenue (5.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: AWK's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AWK's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

How has American Water Works Company performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AWK has high quality earnings.

Growing Profit Margin: AWK's current net profit margins (19.3%) are higher than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: AWK's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: AWK's earnings growth over the past year (17.4%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: AWK earnings growth over the past year (17.4%) underperformed the Water Utilities industry 17.4%.


Return on Equity

High ROE: AWK's Return on Equity (11.2%) is considered low.


Financial Health

How is American Water Works Company's financial position?


Financial Position Analysis

Short Term Liabilities: AWK's short term assets ($1.6B) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: AWK's short term assets ($1.6B) do not cover its long term liabilities ($16.6B).


Debt to Equity History and Analysis

Debt Level: AWK's debt to equity ratio (164.4%) is considered high.

Reducing Debt: AWK's debt to equity ratio has increased from 133.6% to 164.4% over the past 5 years.

Debt Coverage: AWK's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: AWK's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

What is American Water Works Company current dividend yield, its reliability and sustainability?

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AWK's dividend (1.36%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: AWK's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: AWK's dividends per share have been stable in the past 10 years.

Growing Dividend: AWK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), AWK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AWK's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Walter Lynch (58 yo)

1.42yrs

Tenure

US$5,675,833

Compensation

Mr. Walter J. Lynch has been the President and Chief Executive Officer at American Water Works Company, Inc. since April 1, 2020. Mr. Lynch had been an Executive Vice President at American Water Works Comp...


CEO Compensation Analysis

Compensation vs Market: Walter's total compensation ($USD5.68M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Walter's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AWK's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: AWK's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Water Works Company, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: American Water Works Company, Inc.
  • Ticker: AWK
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$32.087b
  • Shares outstanding: 181.50m
  • Website: https://www.amwater.com

Number of Employees


Location

  • American Water Works Company, Inc.
  • 1 Water Street
  • Camden
  • New Jersey
  • 08102-1658
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:03
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.