Overview Dividends

(AWK) American Water Works - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0304201033

Water, Wastewater, Treatment, Distribution, Services

AWK EPS (Earnings per Share)

EPS Growth (3Y CAGR): -51.78%
EPS Trend (3Y Correlation): -19.1%

AWK Revenue

Revenue Growth (3Y CAGR): 6.18%
Revenue Trend (3Y Correlation): 71.2%

Description: AWK American Water Works October 14, 2025

American Water Works Company (NYSE: AWK) is the largest publicly-owned U.S. water and wastewater utility, operating in 14 states and serving roughly 3.5 million customers across residential, commercial, industrial, and public-sector segments.

The firm’s infrastructure portfolio includes about 80 surface-water treatment plants, 520 groundwater treatment plants, 190 wastewater treatment plants, 54,500 mi of pipelines, 1,200 wells, 1,800 pumping stations, 1,100 storage facilities, and 75 dams, reflecting a highly capital-intensive, regulated business model.

Key operational metrics (FY 2023) show revenue of $4.4 bn, an adjusted EBITDA margin of ~58 %, and a regulated rate-base growth of roughly 6 % YoY, driven largely by inflation pass-through mechanisms and ongoing capital-investment programs approved by state regulators.

Sector-wide, water utilities benefit from secular demand growth (U.S. population +0.7 % YoY), increasing water-use efficiency mandates, and heightened climate-resilience spending, all of which support stable cash-flow generation for companies like AWK.

For a deeper quantitative view, you might explore ValueRay’s analyst dashboard for AWK’s forward cash-flow projections and peer comparisons.

AWK Stock Overview

Market Cap in USD	27,519m
Sub-Industry	Water Utilities
IPO / Inception	2008-04-23

AWK Stock Ratings

Growth Rating	14.7%
Fundamental	45.6%
Dividend Rating	62.7%
Return 12m vs S&P 500	-12.7%
Analyst Rating	3.13 of 5

AWK Dividends

Dividend Yield 12m	2.23%
Yield on Cost 5y	2.27%
Annual Growth 5y	8.71%
Payout Consistency	98.3%
Payout Ratio	57.7%

AWK Growth Ratios

Growth Correlation 3m	-25.8%
Growth Correlation 12m	59.7%
Growth Correlation 5y	-41.5%
CAGR 5y	2.34%
CAGR/Max DD 3y (Calmar Ratio)	0.08
CAGR/Mean DD 3y (Pain Ratio)	0.19
Sharpe Ratio 12m	-0.25
Alpha	-9.28
Beta	0.697
Volatility	20.01%
Current Volume	746.4k
Average Volume 20d	1114.6k
Stop Loss	138.3 (-3%)
Signal	-0.09

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (1.08b TTM) > 0 and > 6% of Revenue (6% = 296.5m TTM)

FCFTA -0.03 (>2.0%) and ΔFCFTA -0.04pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -52.45% (prev -15.14%; Δ -37.31pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 1.95b > Net Income 1.08b (YES >=105%, WARN >=100%)

Net Debt (14.97b) to EBITDA (2.81b) ratio: 5.33 <= 3.0 (WARN <= 3.5)

Current Ratio 0.35 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (195.0m) change vs 12m ago 0.0% (target <= -2.0% for YES)

Gross Margin 60.28% (prev 59.83%; Δ 0.45pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 15.18% (prev 13.96%; Δ 1.21pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 3.49 (EBITDA TTM 2.81b / Interest Expense TTM 563.0m) >= 6 (WARN >= 3)

Altman Z'' 0.25

(A) -0.08 = (Total Current Assets 1.40b - Total Current Liabilities 3.99b) / Total Assets 33.91b

(B) 0.07 = Retained Earnings (Balance) 2.44b / Total Assets 33.91b

(D) 0.11 = Book Value of Equity 2.45b / Total Liabilities 23.23b

Total Rating: 0.25 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 45.55

1. Piotroski 4.50pt = -0.50

2. FCF Yield -2.32% = -1.16

3. FCF Margin -19.97% = -7.49

4. Debt/Equity 1.41 = 1.58

5. Debt/Ebitda 5.33 = -2.50

6. ROIC - WACC (= 0.30)% = 0.38

7. RoE 10.34% = 0.86

8. Rev. Trend 71.17% = 5.34

9. EPS Trend -19.11% = -0.96

What is the price of AWK shares?

As of October 24, 2025, the stock is trading at USD 142.58 with a total of 746,371 shares traded.
Over the past week, the price has changed by -0.44%, over one month by +3.94%, over three months by +1.07% and over the past year by +2.71%.

Is American Water Works a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, American Water Works (NYSE:AWK) is currently (October 2025) a stock to sell. It has a ValueRay Fundamental Rating of 45.55 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AWK is around 133.62 USD . This means that AWK is currently overvalued and has a potential downside of -6.28%.

Is AWK a buy, sell or hold?

American Water Works has received a consensus analysts rating of 3.13. Therefor, it is recommend to hold AWK.

Strong Buy: 3
Buy: 0
Hold: 9
Sell: 2
Strong Sell: 1

What are the forecasts/targets for the AWK price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	140.4	-1.5%
Analysts Target Price	140.4	-1.5%
ValueRay Target Price	145.4	2%

AWK Fundamental Data Overview October 11, 2025

Market Cap USD = 27.52b (27.52b USD * 1.0 USD.USD)
P/E Trailing = 25.4603
P/E Forward = 22.1239
P/S = 5.5683
P/B = 2.4764
P/EG = 3.2975
Beta = 0.697
Revenue TTM = 4.94b USD
EBIT TTM = 1.97b USD
EBITDA TTM = 2.81b USD
Long Term Debt = 12.28b USD (from longTermDebt, last quarter)
Short Term Debt = 2.71b USD (from shortTermDebt, last quarter)
Debt = 15.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 14.97b USD (from netDebt column, last quarter)
Enterprise Value = 42.49b USD (27.52b + Debt 15.06b - CCE 94.0m)
Interest Coverage Ratio = 3.49 (Ebit TTM 1.97b / Interest Expense TTM 563.0m)
FCF Yield = -2.32% (FCF TTM -987.0m / Enterprise Value 42.49b)
FCF Margin = -19.97% (FCF TTM -987.0m / Revenue TTM 4.94b)
Net Margin = 21.91% (Net Income TTM 1.08b / Revenue TTM 4.94b)
Gross Margin = 60.28% ((Revenue TTM 4.94b - Cost of Revenue TTM 1.96b) / Revenue TTM)
Gross Margin QoQ = 62.38% (prev 59.02%)
Tobins Q-Ratio = 1.25 (Enterprise Value 42.49b / Total Assets 33.91b)
Interest Expense / Debt = 1.00% (Interest Expense 151.0m / Debt 15.06b)
Taxrate = 23.14% (87.0m / 376.0m)
NOPAT = 1.51b (EBIT 1.97b * (1 - 23.14%))
Current Ratio = 0.35 (Total Current Assets 1.40b / Total Current Liabilities 3.99b)
Debt / Equity = 1.41 (Debt 15.06b / totalStockholderEquity, last quarter 10.68b)
Debt / EBITDA = 5.33 (Net Debt 14.97b / EBITDA 2.81b)
Debt / FCF = -15.17 (negative FCF - burning cash) (Net Debt 14.97b / FCF TTM -987.0m)
Total Stockholder Equity = 10.48b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.19% (Net Income 1.08b / Total Assets 33.91b)
RoE = 10.34% (Net Income TTM 1.08b / Total Stockholder Equity 10.48b)
RoCE = 8.63% (EBIT 1.97b / Capital Employed (Equity 10.48b + L.T.Debt 12.28b))
RoIC = 6.12% (NOPAT 1.51b / Invested Capital 24.68b)
WACC = 5.82% (E(27.52b)/V(42.58b) * Re(8.58%) + D(15.06b)/V(42.58b) * Rd(1.00%) * (1-Tc(0.23)))
Discount Rate = 8.58% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
Fair Price DCF = unknown (Cash Flow -987.0m)
EPS Correlation: -19.11 | EPS CAGR: -51.78% | SUE: -4.0 | # QB: 0
Revenue Correlation: 71.17 | Revenue CAGR: 6.18% | SUE: 1.30 | # QB: 5

Additional Sources for AWK Stock

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