NYSE:AWK

Stock Analysis Report

American Water Works Company

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has American Water Works Company's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

NYSE:AWK

0.6%

US Water Utilities

-0.02%

US Market


1 Year Return

37.4%

NYSE:AWK

30.5%

US Water Utilities

1.6%

US Market

AWK outperformed the Water Utilities industry which returned 30.1% over the past year.

AWK outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

AWKIndustryMarket
7 Day-0.2%0.6%-0.02%
30 Day-1.7%-0.4%2.7%
90 Day2.9%5.7%1.4%
1 Year40.0%37.4%33.1%30.5%3.8%1.6%
3 Year66.8%57.1%65.8%55.7%45.2%35.8%
5 Year179.9%151.9%159.1%132.1%61.8%44.1%

Price Volatility Vs. Market

How volatile is American Water Works Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Water Works Company undervalued based on future cash flows and its price relative to the stock market?

37.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

American Water Works Company's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

American Water Works Company's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

American Water Works Company is good value based on earnings compared to the US Water Utilities industry average.

American Water Works Company is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

American Water Works Company is poor value based on expected growth next year.


Price Based on Value of Assets

American Water Works Company is overvalued based on assets compared to the US Water Utilities industry average.


Next Steps

Future Growth

How is American Water Works Company expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

American Water Works Company's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

American Water Works Company's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

American Water Works Company's revenue growth is positive but not above the United States of America market average.

American Water Works Company's earnings growth is positive but not above the United States of America market average.

American Water Works Company's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

American Water Works Company is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

5.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

American Water Works Company's year on year earnings growth rate has been positive over the past 5 years.

American Water Works Company's 1-year earnings growth exceeds its 5-year average (23.8% vs 5%)

American Water Works Company's earnings growth has exceeded the US Water Utilities industry average in the past year (23.8% vs 2.3%).


Return on Equity

American Water Works Company has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

American Water Works Company used its assets more efficiently than the US Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

American Water Works Company's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is American Water Works Company's financial position?


Financial Position Analysis

American Water Works Company's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

American Water Works Company's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

American Water Works Company's level of debt (150.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (122.1% vs 150.5% today).

Debt is not well covered by operating cash flow (14.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

1.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

American Water Works Company's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

American Water Works Company's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of American Water Works Company's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Susan Story (59yo)

5.3yrs

Tenure

US$4,983,114

Compensation

Ms. Susan N. Story has been the President and Chief Executive Officer of American Water Works Company, Inc. since May 9, 2014. She served as the Chief Financial Officer and Senior Vice President of America ...


CEO Compensation Analysis

Susan's remuneration is lower than average for companies of similar size in United States of America.

Susan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

The tenure for the American Water Works Company management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

The average tenure for the American Water Works Company board of directors is less than 3 years, this suggests a new board.


Insider Trading

American Water Works Company individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,291,80004 Sep 19
George MacKenzie
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$129.18
SellUS$470,56907 Aug 19
Loyd Warnock
EntityIndividual
Role
Senior Key Executive
Senior Vice President of External Affairs & Business Development
Shares4,023
Max PriceUS$117.07
SellUS$380,69905 Jun 19
Walter Lynch
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares3,372
Max PriceUS$112.90
BuyUS$33704 Jun 19
Jeffrey Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent director
Shares3
Max PriceUS$112.47
BuyUS$8,82329 Nov 18
Susan Story
EntityIndividual
Role
Chief Executive Officer
President
Shares96
Max PriceUS$91.91
BuyUS$91,30015 Nov 18
Karl Kurz
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000
Max PriceUS$91.30

Ownership Breakdown


Management Team

  • Susan Story (59yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$4.98m
  • Michael Sgro (60yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$1.77m
  • Walter Lynch (56yo)

    Executive VP & COO

    • Tenure: 3.7yrs
    • Compensation: US$2.04m
  • M. Hardwick (56yo)

    Executive VP & CFO

    • Tenure: 0.2yrs
  • Aldie Warnock (59yo)

    Senior Vice President of External Affairs & Business Development

    • Tenure: 2.1yrs
    • Compensation: US$1.17m
  • Maureen Duffy (49yo)

    Vice President of Communications & Federal Affairs

    • Tenure: 0yrs
  • Ed Vallejo (59yo)

    Vice President of Investor Relations

    • Tenure: 3yrs
  • Melissa Wikle (53yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 3.1yrs
  • Mark Smith (59yo)

    Chief Information Officer & VP

    • Tenure: 7yrs
  • Radha Swaminathan (57yo)

    Executive VP and Chief Customer

    • Tenure: 3.5yrs

Board Members

  • Pat Kampling (59yo)

    Independent Director

    • Tenure: 0.2yrs
  • George MacKenzie (70yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: US$270.68k
  • Julia Johnson (56yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$261.14k
  • Martha Goss (69yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$248.17k
  • Susan Story (59yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$4.98m
  • Ronee Hagen (73yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$237.77k
  • Karl Kurz (57yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: US$342.91k
  • Jeff Edwards (57yo)

    Independent director

    • Tenure: 1.5yrs
    • Compensation: US$229.42k
  • Kimberly Harris (55yo)

    Independent Director

    • Tenure: 0.2yrs
  • Jim Stavridis (64yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$229.42k

Company Information

American Water Works Company, Inc.'s company bio, 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$21.953b
  • Shares outstanding: 180.65m
  • Website: https://www.amwater.com

Number of Employees


Location

  • American Water Works Company, Inc.
  • 1 Water Street
  • Camden
  • New Jersey
  • 8102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWKNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2008
AWCDB (Deutsche Boerse AG)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

Biography

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. It offers water and wastewater services to approximately 1,600 communit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:01
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.