AWK

American Water Works Co

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Utilities

industry

Utilities - Regulated Water

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Applied Materials generates cash by selling highly specialized semiconductor fabrication equipment and related services that are mission-critical to chip manufacturers. Its moat comes from deep process expertise, embedded customer relationships, and the high switching costs associated with requalifying equipment in advanced fabs. The company benefits from recurring service and upgrade revenue layered on top of large system sales, stabilizing cash flows across cycles. Scale, R&D intensity, and integration into customers’ production roadmaps create a competitive barrier that smaller rivals struggle to breach.

VALUATION

P/E

24.1

Market Cap ($M USD)

$26,796

Forward P/E

20.9

PEG

3.4

PRICE TO SALES

5.2

PRICE TO BOOK

2.5

EV / EBITDA

14.50

5-Year Average P/E

DIVIDEND

Yield

2.40%

Annual Payout

$3.31

Payout Ratio

57.10%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

8.50%

Financial Health & Profitability

Earnings Per Share

$5.69

Next Year EPS Growth Estimate

$6.58

Next Year Revenue Growth Estimate

7.30%

Return on Equity (ROE)

10.30%

Operating Margin

36.60%

Debt-to-Equity

1.5

Piotroski F-Score

6

Altman Z-Score

1

Return on Invested Capital (ROIC)

5.90%%

Current Ratio

0.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 41x earnings with a forward P/E of 28.6, the market is clearly pricing in deceleration but not distress. A PEG Forward of 1.5 suggests growth is reasonably aligned with valuation rather than egregiously overextended, and an Altman Z-Score of 16 signals extreme balance sheet safety with negligible bankruptcy risk. Operating Margin at 36.10% and ROIC at 28.10% reflect a capital-efficient compounder, not a speculative cyclical. This is not a deep value name, but the combination of high profitability and fortress-level financial stability suggests the market is paying a premium for durability rather than hype. The stock looks fairly valued to modestly attractive for GARP investors who prioritize quality and survivability.

AI Exposure / Tech Reliance

As a Semiconductor Equipment & Materials company, it sits at the core of AI infrastructure buildout rather than at the volatile application layer. Every incremental AI-driven chip cycle structurally increases demand for advanced fabrication equipment, embedding the company into long-term capital expenditure cycles. Its industry positioning makes it a picks-and-shovels beneficiary of AI proliferation rather than a direct speculative bet.

The Bull Case

A GARP investor buys this because the business throws off elite returns: 28.10% ROIC against a 36.10% operating margin is the profile of a company with pricing power and operational leverage. A Piotroski F-Score of 7 confirms strong financial health, while a 19.50% ROE demonstrates consistent shareholder value creation. The Current Ratio of 2.7 and Debt/Equity of 29.70% indicate disciplined leverage and strong liquidity, reducing balance sheet risk. With a forward P/E of 28.6 below the trailing 41 multiple, the valuation compresses into expected growth, offering an improving earnings yield profile. Institutional investors tend to reward this mix of profitability, resilience, and capital efficiency, particularly in capital-intensive tech supply chains.

The Bear Case

The stock is not cheap at 41x earnings and 11.4x sales, leaving little room for cyclical disappointment. A PEG Forward of 1.5 implies growth must execute cleanly; any slowdown in semiconductor capex could compress multiples quickly. Short interest at 15.90% of float is elevated enough to signal skepticism about near-term demand durability. The dividend yield at 0.3 with a payout ratio listed at $2.12 and dividend per share shown as 0.50% suggests capital returns are not a core support mechanism if growth falters. In a capital equipment business inherently exposed to cycles, even a modest downturn can punish richly valued names.

Market Sentiment & Smart Money

Short Interest %

6.60%

Analyst Consensus

2.83

Average Analyst Price Target

$141.60

Institutional Ownership %

99.50%

1-Year Beta

-0.33

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

91.20%%

Distance to 52-Week Low

113.20%%