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AWK

American Water Works Company NYSE:AWK Stock Report

Last Price

US$133.20

Market Cap

US$24.2b

7D

-6.7%

1Y

-21.2%

Updated

29 Sep, 2022

Data

Company Financials +

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$133.20
52 Week HighUS$189.65
52 Week LowUS$129.45
Beta0.44
1 Month Change-11.49%
3 Month Change-13.19%
1 Year Change-21.20%
3 Year Change7.65%
5 Year Change60.66%
Change since IPO546.60%

Recent News & Updates

Sep 22

American Water unit buys city of Villa Grove's water & wastewater systems for $11M

Illinois American Water, a unit of U.S. utility American Water Works (NYSE:AWK), on Thursday said it would acquire the water and wastewater systems of Villa Grove city in Illinois for $11M. The newly acquired systems will add about 1.5K water and 1.1K wastewater customers to the company's eastern Illinois service area, the AWK unit said in a statement. Illinois American said it plans to invest around $21M over seven years to upgrade the city's water and wastewater systems. AWK stock earlier closed -1.1% at $142.79.

Aug 19

American Water Works: An Expensive Stock Underperforming Its Sector With A Muddy Chart

The Utilities sector notched an all-time high on Thursday, greatly beating the S&P 500 for the year. American Water Works is underperforming, however, and stock trades at a big premium considering low earnings growth on the horizon. With a poor valuation, AWK's chart is also not overly bullish. Want to know what's leading this low-volume market right now? Look no further than the Utilities sector which notched an all-time high on Thursday. The Utilities Select Sector SPDR ETF (XLU) is up more than 10% thus far in 2022 while the S&P 500 SPDR Trust ETF (SPY) is lower by 10%. Investors have found safety within the group of low-beta names that includes companies in the power generation business and those engaged in the transmission and distribution of domestic energy. Utilities Crushing The S&P 500 Year-To-Date Stockcharts.com One Regulated Water company is a risky wager - due to valuation - for investors seeking growth at a reasonable price. High-Priced Utilities Sector Companies: Forward P/E Ratio Heat Map Finviz According to Bank of America Global Research, American Water Works Company, Inc (AWK) is headquartered in New Jersey and provides regulated water service along with a smaller nonregulated business oriented towards the military. New Jersey and Pennsylvania make up the bulk of the company's revenue. AWK is 9.7% of the Invesco S&P Global Water Index ETF (CGW). The $29 billion market cap S&P 500-listed Water Utility industry company in the Utilities sector trades at a lofty price-to-earnings ratio of 22.2-times last year's earnings and pays a relatively low yield of 1.65%, according to The Wall Street Journal. The sector's yield is 2.8%, per SSGA Funds. AWK's high P/E is not warranted given a tepid earnings growth rate in the coming years. BofA notes that American Water has favorable ESG characteristics, but that alone does not justify a valuation that is probably about 20% too expensive. Moreover, there is a competitive threat from the biggest company in the sector - NextEra (NEE). AWK's EV/EBITDA multiple is high, too, while the firm's free cash flow yield is in the red. AWK Earnings, Valuation, Dividend Yield Forecasts BofA Global Research Looking ahead, American Water's Q3 earnings date is unconfirmed for Monday, October 31, AMC, according to Wall Street Horizon. A dividend pay date hits on the first of September. American Water Works Corporate Event Calendar Wall Street Horizon The Technical Take AWK shares are over-valued fundamentally to me. The chart is a bit more bullish, but it also features relative price weakness. AWK is down 15% this year, including dividends, compared to the sector's 10.2% total return. That's worse than the broad market in 2022, as well. On the bullish side, I see shares modestly breaking out above the mid-$150s, but that has come on declining volume. Moreover, there's resistance starting at $165 that could prove problematic for those long AWK shares.

Aug 15
Do American Water Works Company's (NYSE:AWK) Earnings Warrant Your Attention?

Do American Water Works Company's (NYSE:AWK) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Aug 01
American Water Works Company (NYSE:AWK) Has A Somewhat Strained Balance Sheet

American Water Works Company (NYSE:AWK) Has A Somewhat Strained Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

AWKUS Water UtilitiesUS Market
7D-6.7%-6.3%-3.1%
1Y-21.2%-16.4%-21.5%

Return vs Industry: AWK underperformed the US Water Utilities industry which returned -14.8% over the past year.

Return vs Market: AWK matched the US Market which returned -20.3% over the past year.

Price Volatility

Is AWK's price volatile compared to industry and market?
AWK volatility
AWK Average Weekly Movement3.5%
Water Utilities Industry Average Movement3.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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

Volatility Over Time: AWK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18866,400M. Hardwickhttps://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 14 states serving approximately 3.4 million active customers. The company serves residential customers; commercial customers, including 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$24.21b
Earnings (TTM)US$1.30b
Revenue (TTM)US$3.82b

18.6x

P/E Ratio

6.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AWK income statement (TTM)
RevenueUS$3.82b
Cost of RevenueUS$1.67b
Gross ProfitUS$2.16b
Other ExpensesUS$856.00m
EarningsUS$1.30b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)7.15
Gross Margin56.38%
Net Profit Margin33.99%
Debt/Equity Ratio153.5%

How did AWK perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

35%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AWK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AWK?

Other financial metrics that can be useful for relative valuation.

AWK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.4x
Enterprise Value/EBITDA18.6x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does AWK's PE Ratio compare to its peers?

AWK PE Ratio vs Peers
The above table shows the PE ratio for AWK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.4x
WTRG Essential Utilities
24.7x8.2%US$11.1b
AWR American States Water
35.8x8.0%US$2.9b
CWT California Water Service Group
34x10.4%US$2.9b
MSEX Middlesex Water
35xn/aUS$1.4b
AWK American Water Works Company
18.6x5.6%US$24.2b

Price-To-Earnings vs Peers: AWK is good value based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (32.4x).


Price to Earnings Ratio vs Industry

How does AWK's PE Ratio compare vs other companies in the Global Water Utilities Industry?

Price-To-Earnings vs Industry: AWK is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the Global Water Utilities industry average (16.4x)


Price to Earnings Ratio vs Fair Ratio

What is AWK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AWK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: AWK is good value based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).


Share Price vs Fair Value

What is the Fair Price of AWK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AWK ($133.2) is trading above our estimate of fair value ($86.26)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is American Water Works Company forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWK's forecast earnings growth (5.6% per year) is above the savings rate (1.9%).

Earnings vs Market: AWK's earnings (5.6% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: AWK's revenue (5.9% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: AWK's revenue (5.9% 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 (10.9%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AWK has a large one-off gain of $747.0M impacting its June 30 2022 financial results.

Growing Profit Margin: AWK's current net profit margins (34%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: AWK's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: AWK's earnings growth over the past year (73.4%) exceeds its 5-year average (21.1% per year).

Earnings vs Industry: AWK earnings growth over the past year (73.4%) exceeded the Water Utilities industry 3.3%.


Return on Equity

High ROE: AWK's Return on Equity (17.2%) is considered low.


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Financial Health

How is American Water Works Company's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AWK's short term assets ($1.0B) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: AWK's short term assets ($1.0B) do not cover its long term liabilities ($17.3B).


Debt to Equity History and Analysis

Debt Level: AWK's net debt to equity ratio (152.3%) is considered high.

Reducing Debt: AWK's debt to equity ratio has increased from 138.6% to 153.5% over the past 5 years.

Debt Coverage: AWK's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: AWK's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.97%

Current Dividend Yield

Dividend Yield vs Market

American Water Works Company Dividend Yield vs Market
How does American Water Works Company dividend yield compare to the market?
SegmentDividend Yield
Company (American Water Works Company)2.0%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Water Utilities)2.2%
Analyst forecast in 3 Years (American Water Works Company)2.2%

Notable Dividend: AWK's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: AWK's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (4.61%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.6%), AWK's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: AWK is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure


CEO

M. Hardwick (59 yo)

0.67yr

Tenure

US$2,408,687

Compensation

Ms. M. Susan Hardwick serves as an Independent Director at New Jersey Resources Corporation since August 13, 2020. She had been the Chief Financial Officer of American Water Works Company, Inc. since July...


CEO Compensation Analysis

M. Hardwick's Compensation vs American Water Works Company Earnings
How has M. Hardwick's remuneration changed compared to American Water Works Company's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$1b

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$2mUS$617k

US$1b

Sep 30 2021n/an/a

US$763m

Jun 30 2021n/an/a

US$749m

Mar 31 2021n/an/a

US$718m

Dec 31 2020US$2mUS$584k

US$709m

Sep 30 2020n/an/a

US$662m

Jun 30 2020n/an/a

US$638m

Mar 31 2020n/an/a

US$632m

Dec 31 2019US$1mUS$296k

US$621m

Compensation vs Market: M.'s total compensation ($USD2.41M) is below average for companies of similar size in the US market ($USD13.03M).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over 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 (4.5 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

NYSE:AWK Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Jun 22SellUS$105,405Melanie KennedyIndividual693US$152.10
20 May 22SellUS$149,740Melanie KennedyIndividual1,029US$145.52
22 Nov 21SellUS$608,916Cheryl NortonIndividual3,538US$172.49

Ownership Breakdown

What is the ownership structure of AWK?
Owner TypeNumber of SharesOwnership Percentage
State or Government79,5050.04%
Individual Insiders333,7530.2%
General Public22,843,20612.6%
Institutions158,530,00987.2%

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


Top Shareholders

Top 25 shareholders own 54.93% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.28%
The Vanguard Group, Inc.
22,327,170$3.0b1.67%0.07%
9.01%
BlackRock, Inc.
16,369,948$2.2b2.18%0.06%
5.79%
State Street Global Advisors, Inc.
10,526,327$1.4b0.76%0.08%
3.91%
Pictet Asset Management Limited
7,112,897$947.4m0.92%0.89%
2.7%
Impax Asset Management Group plc
4,906,097$653.5m-6.75%2.26%
1.96%
Northern Trust Global Investments
3,559,556$474.1m2.58%0.1%
1.96%
Geode Capital Management, LLC
3,553,972$473.4m-1.36%0.06%
1.54%
Invesco Capital Management LLC
2,807,626$374.0m23.06%0.31%
1.54%
RREEF America L.L.C.
2,795,316$372.3m5.13%1.89%
1.53%
Legal & General Investment Management Limited
2,784,790$370.9m0.89%0.12%
1.37%
UBS Asset Management
2,495,291$332.4m-1.08%0.07%
1.31%
Amundi Asset Management
2,378,519$316.8m8.47%0.1%
1.04%
Allspring Global Investments, LLC
1,883,280$250.9m-1.06%0.4%
0.92%
AllianceBernstein L.P.
1,668,994$222.3m0.47%0.1%
0.9%
Norges Bank Investment Management
1,637,404$218.1m0%0.03%
0.88%
Bank of America Corporation, Asset Management Arm
1,597,222$212.7m0.53%0.09%
0.85%
Goldman Sachs Asset Management, L.P.
1,541,515$205.3m53.99%0.09%
0.81%
BNY Mellon Asset Management
1,479,766$197.1m4.65%0.05%
0.73%
City National Rochdale, LLC
1,323,645$176.3m1.25%0.72%
0.72%
California Public Employees' Retirement System
1,317,377$175.5m-2.34%0.17%
0.71%
BNPP Asset Management France
1,299,417$173.1m-1.04%0.61%
0.65%
Deutsche Asset & Wealth Management
1,188,897$158.4m-3.39%0.07%
0.63%
Wells Fargo & Company, Securities and Brokerage Investments
1,147,626$152.9m-0.37%0.07%
0.6%
Allianz Asset Management AG
1,086,656$144.7m-7.21%0.13%
0.58%
Morgan Stanley, Investment Banking and Brokerage Investments
1,060,657$141.3m-2.18%0.03%

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
  • Implied Market Cap: US$24.214b
  • Shares outstanding: 181.79m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWKNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2008
AWCDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2008
AWCXTRA (XETRA Trading Platform)YesCommon StockDEEURApr 2008
AWKWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2008
0HEWLSE (London Stock Exchange)YesCommon StockGBUSDApr 2008
AWK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2008
AWCETLX (Eurotlx)YesCommon StockITEURApr 2008
A1WK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.