AWK Stock Analysis: American Water Works | NYSE
Utilities - Regulated Water | NYSE, USA | Market Cap: 26.985m USD | 12M Return: 2.9% | US0304201033 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 240M
EPS Trend: 96.5%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 9
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
American Water Works Company (NYSE: AWK) is the largest publicly traded water and wastewater utility in the United States, headquartered in Camden, New Jersey, and founded in 1886. The company provides water and wastewater services across 14 states to approximately 3.6 million active customers, including residential, commercial, industrial, fire service, and public authority customers. It also operates and manages water and wastewater facilities on military installations and under municipal contracts.
AWK operates an extensive infrastructure network that includes surface water treatment plants, groundwater treatment plants, wastewater treatment plants, tens of thousands of miles of transmission and distribution mains, groundwater wells, pumping stations, treated water storage facilities, and dams. As a regulated water utility under the GICS Utilities sector, the company earns revenue primarily through rates approved by state public utility commissions, which permit regulated returns on its invested rate base. This regulated structure typically delivers predictable, recurring cash flows tied to the essential nature of water service and ongoing capital investment in system upgrades.
- Rate case approvals increase allowed ROE and revenue recovery
- Municipal system acquisitions expand customer base and rate base
- Federal lead and PFAS mandates accelerate infrastructure capital spending
| Net Income: 1.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 0.08 > 1.0 |
| NWC/Revenue: -29.52% < 20% (prev -52.45%; Δ 22.93% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.33b > Net Income 1.13b |
| Net Debt (15.9b) to EBITDA (2.87b): 5.56 < 3 |
| Current Ratio: 0.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (196.0m) vs 12m ago 0.51% < -2% |
| Gross Margin: 47.20% > 18% (prev 60.28%; Δ -13.08% > 0.5%) |
| Asset Turnover: 15.02% > 50% (prev 14.57%; Δ 0.45% > 0%) |
| Interest Coverage Ratio: 2.97 > 6 (EBIT TTM 1.93b / Interest Expense TTM 650.0m) |
| A: -0.04 (Total Current Assets 1.71b - Total Current Liabilities 3.27b) / Total Assets 36.5b |
| B: 0.08 (Retained Earnings 2.91b / Total Assets 36.5b) |
| C: 0.05 (EBIT TTM 1.93b / Avg Total Assets 35.2b) |
| D: 0.47 (Book Value of Equity 11.7b / Total Liabilities 24.8b) |
| Altman-Z'' = 0.84 = B |
| DSRI: 0.59 (Receivables 554.0m/883.0m, Revenue 5.28b/4.94b) |
| GMI: 1.28 (GM 60.28% / 47.20%) |
| AQI: 0.75 (AQ_t 0.08 / AQ_t-1 0.10) |
| SGI: 1.07 (Revenue 5.28b / 4.94b) |
| TATA: -0.03 (NI 1.13b - CFO 2.33b) / TA 36.5b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of October 25, 2026, the stock is trading at USD 142.75 with a total of 1,977,784 shares traded. Over the past week, the price has changed by +5.79%, over one month by +7.28%, over three months by +6.91% and over the past year by +2.85%.
Current recommended Stop Loss: 136.90 (which is 4.1% or 1.9 ATR below the current price).
American Water Works has received a consensus analysts rating of 3.38. Therefore, it is recommended to hold AWK.
- StrongBuy: 3
- Buy: 0
- Hold: 9
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 140.4 | -1.7% |
P/E Trailing = 23.1329
P/E Forward = 20.0401
P/S = 5.107
P/B = 2.2669
P/EG = 2.3575
Revenue TTM = 5.28b USD
EBIT TTM = 1.93b USD
EBITDA TTM = 2.87b USD
Long Term Debt = 14.0b USD (from longTermDebt, last quarter)
Short Term Debt = 1.95b USD (from shortTermDebt, last quarter)
Debt = 16.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 70.0m
Net Debt = 15.9b USD (calculated: Debt 16.1b - CCE 191.0m)
Enterprise Value = 42.9b USD (27.0b + Debt 16.1b - CCE 191.0m)
Interest Coverage Ratio = 2.97 (Ebit TTM 1.93b / Interest Expense TTM 650.0m)
EV/FCF = -41.68x (Enterprise Value 42.9b / FCF TTM -1.03b)
FCF Yield = -2.40% (FCF TTM -1.03b / Enterprise Value 42.9b)
FCF Margin = -19.49% (FCF TTM -1.03b / Revenue TTM 5.28b)
Net Margin = 21.35% (Net Income TTM 1.13b / Revenue TTM 5.28b)
Gross Margin = 47.20% ((Revenue TTM 5.28b - Cost of Revenue TTM 2.79b) / Revenue TTM)
Gross Margin QoQ = 75.50% (prev 59.15%)
Tobins Q-Ratio = 1.18 (Enterprise Value 42.9b / Total Assets 36.5b)
Interest Expense / Debt = 4.03% (Interest Expense 650.0m / Debt 16.1b)
Taxrate = 21.67% (312.0m / 1.44b)
NOPAT = 1.51b (EBIT 1.93b * (1 - 21.67%))
Current Ratio = 0.52 (Total Current Assets 1.71b / Total Current Liabilities 3.27b)
Debt / Equity = 1.38 (Debt 16.1b / totalStockholderEquity, last quarter 11.7b)
Debt / EBITDA = 5.56 (Net Debt 15.9b / EBITDA 2.87b)
Debt / FCF = -15.48 (negative FCF - burning cash) (Net Debt 15.9b / FCF TTM -1.03b)
Total Stockholder Equity = 11.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.21% (Net Income 1.13b / Total Assets 36.5b)
RoE = 10.15% (Net Income TTM 1.13b / Total Stockholder Equity 11.1b)
RoCE = 7.68% (EBIT 1.93b / Capital Employed (Equity 11.1b + L.T.Debt 14.0b))
RoIC = 4.33% (NOPAT 1.51b / Invested Capital 34.9b)
WACC = 3.35% (E(27.0b)/V(43.1b) * Re(3.47%) + D(16.1b)/V(43.1b) * Rd(4.03%) * (1-Tc(0.22)))
Discount Rate = 3.47% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 3.54%
Shares (quarterly) Correlation: 52.22 | Cagr: 0.23%
[DCF] Fair Price = unknown (Cash Flow -1.03b)
EPS Correlation: 96.50 | EPS CAGR: 8.18% | SUE: 0.26 | # QB: 0
Revenue Correlation: 99.27 | Revenue CAGR: 10.06% | SUE: 2.00 | # QB: 9
EPS current Quarter (2026-09-30): EPS=2.06 | Chg30d=-0.79% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=6.08 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+7.9% | GrowthRev=+5.2%
EPS next Year (2027-12-31): EPS=6.57 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+7.9% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +29% (up=3, down=1)