AWK

American Water Works Company, Inc.

Fundamental data last updated:September 4, 2026

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company profile

SECTOR

Utilities

industry

Regulated Water

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 14 states serving approximately 3.4 million active customers. The company serves residential customers; commercial customers, including 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. It also provides water and wastewater services on various military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. In addition, the company operates approximately 80 surface water treatment plants; 480 groundwater treatment plants; 160 wastewater treatment plants; 52,500 miles of transmission, distribution, and collection mains and pipes; 1,100 groundwater wells; 1,700 water and wastewater pumping stations; 1,300 treated water storage facilities; and 76 dams. It serves approximately 14 million people with drinking water, wastewater, and other related services in 24 states. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey.

 


VALUATION

P/E

21.80

Market Cap ($M USD)

$24.06B

Forward P/E

14.91

PEG

0.32

PRICE TO SALES

4.62

PRICE TO BOOK

2.18

EV / EBITDA

14.30

5-Year Average P/E

Free Cash Flow Yield

-5.00%

DCF Value

$-373.65

Graham Number

$84.83

Price to FCF

-19.98

EV to FCF

-32.90

Earnings Yield

4.59%

FCF Yield

-5.00%

DIVIDEND

Yield

2.74%

Annual Payout

$3.38

Payout Ratio

58.62%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.65

Next Year EPS Growth Estimate

$8.26

Next Year Revenue Growth Estimate

$7.51B

Return on Equity (ROE)

10.14%

FREE CASH FLOW

Operating Margin

36.48%

Debt-to-Equity

1.47

Piotroski F-Score

6

Altman Z-Score

0.94

Return on Invested Capital (ROIC)

6.10%

Current Ratio

0.37

Quick Ratio

0.34

Net Debt to EBITDA

5.62

Interest Coverage

3.00

Gross Profit margin

43.55%

FCF PER SHARE

$-6.17

REVENUE PER SHARE

$26.69

Gainseekers Quantitative Analysis

Summary

AWK’s valuation raises eyebrows. With a Forward P/E of 15.13, the market anticipates robust growth, yet the DCF Value shockingly suggests a significant overvaluation. The Earnings Yield of 4.52% is modest, and the Altman Z-score of 0.95 signals financial distress, hinting at potential solvency issues. Despite a solid operating margin of 36.48%, the stock’s price appears extended relative to its intrinsic value, suggesting caution for value investors. The Graham Number further underscores this mispricing, indicating a disconnect between market expectations and fundamental reality.

AI Exposure / Tech Reliance

In the regulated water industry, AWK's exposure to AI and tech shifts is limited but not irrelevant. The company can leverage technology to optimize water management and improve operational efficiency. However, its core business remains largely insulated from rapid tech disruptions, focusing instead on infrastructure and service reliability.

The Bull Case

For the discerning GARP investor, AWK offers intriguing prospects. The company's ROIC of 6.10% reflects efficient capital allocation, while a Piotroski F-Score of 6 suggests decent financial health. Its operating margin of 36.48% indicates strong pricing power in a regulated market. Although the FCF Yield is negative, the robust EPS growth estimate for next year paints a picture of potential earnings expansion, appealing to those seeking growth at a reasonable price.

The Bear Case

AWK faces significant structural risks. The negative FCF Yield and Price to FCF ratio of -20.28 highlight cash flow challenges, raising red flags about liquidity. With a Price/Book ratio of 2.21 and Price/Sales of 4.69, the stock appears expensive, especially given its proximity to the 52-week high. The low Current Ratio of 0.37 further exacerbates concerns about short-term financial stability, suggesting potential vulnerability in meeting immediate obligations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$131.67

Institutional Ownership %

1-Year Beta

0.63

Insider Buying % (6 Mo)

Distance to 52-Week High

20.02%

Distance to 52-Week Low

1.56%

EARNINGS SURPRISE %

-7.34%

50-DAY SMA

$131.04

200-DAY SMA

$133.61

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.