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
|Historical stock prices|
|Current Share Price||US$176.79|
|52 Week High||US$131.01|
|52 Week Low||US$189.35|
|1 Month Change||-1.95%|
|3 Month Change||12.37%|
|1 Year Change||22.58%|
|3 Year Change||100.97%|
|5 Year Change||136.22%|
|Change since IPO||758.20%|
Recent News & Updates
|AWK||US Water Utilities||US Market|
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.
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
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
|AWK fundamental statistics|
Is AWK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AWK income statement (TTM)|
|Cost of Revenue||US$1.70b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||4.13|
|Net Profit Margin||19.26%|
How did AWK perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is American Water Works Company undervalued compared to its fair value and its price relative to the market?
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).
How is American Water Works Company forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
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%).
How has American Water Works Company performed over the past 5 years?
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.
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 ($16.6B).
Debt to Equity History and Analysis
Debt Level: AWK's debt to equity ratio (164.4%) is considered high.
Reducing Debt: AWK's debt to equity ratio has increased from 133.6% to 164.4% over the past 5 years.
Debt Coverage: AWK's debt is not well covered by operating cash flow (12.9%).
Interest Coverage: AWK's interest payments on its debt are well covered by EBIT (3.3x coverage).
What is American Water Works Company current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AWK's dividend (1.36%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AWK's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: AWK's dividends per share have been stable in the past 10 years.
Growing Dividend: AWK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.4%), AWK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AWK's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Walter Lynch (58 yo)
Mr. Walter J. Lynch has been the President and Chief Executive Officer at American Water Works Company, Inc. since April 1, 2020. Mr. Lynch had been an Executive Vice President at American Water Works Comp...
CEO Compensation Analysis
Compensation vs Market: Walter's total compensation ($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.
Experienced Management: AWK's management team is considered experienced (2.2 years average tenure).
Experienced Board: AWK's board of directors are considered experienced (3.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
American Water Works Company, Inc.'s employee growth, exchange listings and data sources
- 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
- American Water Works Company, Inc.
- 1 Water Street
- New Jersey
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/26 22:03|
|End of Day Share Price||2021/09/24 00:00|
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.