American Water Works Company, Inc. (AWK)
Utilities · Water Utilities · US stock · S&P 500 component
$143.23
▲ +8.47 (6.29%)
Fair valueFair
$134 −6.4% to fair value
$67fair band $114–$162$201
Day's range
$135.04 – $143.27
52-week range
$120.57 – $145.42
About American Water Works Company, Inc.
American Water Works is the largest publicly traded water and wastewater utility in the United States by customer count. It supplies drinking water and collects and treats wastewater for households, businesses and municipalities in many states, and it also operates contracts on military bases. Revenue comes mainly from regulated rates approved by state commissions, which allow recovery of costs and a return on large investments in pipes and treatment plants.
Revenue over the last twelve months was $5.3 billion, with growth of 10.8% a year over three years. The operating margin stands at 37.0%. The return on invested capital is shown as 6%. Net debt to EBITDA is 5.5 times. Shareholders receive a dividend yielding 2.4%. Its X-Ray Score is 62 out of 100. These numbers describe past results and current financial position, and they are shown for reference only.
Price chart
52-wk range $120.57 – $145.42Volume 2,535,698Daily, split-adjusted
Vitals
Market cap$28.1B
52-week range$120.57 – $145.42
Volume (last day)2,535,698
P/E (TTM)24.8
EBIT / EV yield4.4%
Free-cash-flow yield-3.7%
Dividend yield2.4%
Revenue (TTM)$5.3B
Net income (TTM)$1.1B
Operating margin37.0%
Return on capital5.6%
Debt incl. leases$16.0B
Cash & securities$191M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$134middle half of models $125 – $150
Fair
−6.4% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $143
Undervalued < $114Fair $114 – $162Overvalued > $162
P/E multiple
$144
P/B multiple
$150
P/S multiple
$137
EV/EBITDA multiple
$156
EV/EBIT multiple
$152
EV/revenue multiple
$134
10-year DCF, EBITDA exit
$85
5-year DCF, EBITDA exit
$128
10-year DCF, revenue exit
$82
5-year DCF, revenue exit
$125
10-year DCF, growth exit · not used
$39
5-year DCF, growth exit
$78
Dividend discount, stable
$238
Dividend discount, multi-stage · not used
$431
Earnings power value
$132
Growth the price implies
13.7%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Utilities peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
48/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.4%
Free-cash-flow yield-3.7%
Fair value vs price0.9×
Growth
Strong
76/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)10.8%
EPS growth (3y)8.1%
Growth consistency100%
Profitability
Fair
69/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital5.6%
Operating margin37.0%
Financial health
Fair
58/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA5.5×
Interest cover3.0×
Dividends
Fair
59/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.4%
Dividend growth10.7%
Quarterly results: last 6 quarters
+13.1%
Mar '25
+11.6%
Jun '25
+9.5%
Sep '25
+7.5%
Dec '25
+6.1%
Mar '26
+6.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.4B, diluted EPS $1.61.
SWOT analysis: American Water Works Company, Inc.
Strengthsinside the company
- Operating margin of 37.0% is well above the 22.8% median of sector peers, a sign of pricing power or lower costs.
- Revenue has grown 10.8% a year over three years (median 3.3% for sector peers).
Weaknessesinside the company
- Return on invested capital is only 5.6% (median 5.5% for sector peers), so the business earns little above its cost of capital.
- Free cash flow is negative, so spending or debt has to be financed from outside.
- Net debt is 5.5x EBITDA, above the 3x level that lenders usually watch.
- Altman Z-score of 0.8 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our Market Compass rates the backdrop for Utilities as unfavourable.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare AWK with peers and sector
Medians of 30 Utilities peers and of 30 Utilities stocks in our universe.
Largest peers (X-Ray Score): NEE 45, SO 45, DUK 58, CEG 49, AEP 58, D 53.
| Metric | AWK | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 62 | 50 | 50 |
| Valuation | 48 | 50 | 50 |
| Growth | 76 | 53 | 53 |
| Profitability | 69 | 49 | 49 |
| Financial health | 58 | 51 | 51 |
| Dividends | 59 | 53 | 53 |
Sector leaders: highest X-Ray Score in Utilities
AWK ranks #4 of 31 in Utilities by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for AWK
Each factor is rated by where AWK stands among the 31 Utilities stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 8 Average · 6 Bad of 20
Growth: 1 · 2 · 0
Profitability: 2 · 2 · 0
Financial strength: 2 · 1 · 1
Valuation: 0 · 2 · 3
Cash flow: 0 · 1 · 2
Efficiency: 1 · 0 · 0
| Factor | AWK | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +10.8% | Good beats 98% | +3.4% | – | – |
| Revenue growth, last year | +10.1% | Average beats 62% | +9.6% | +10.1% | ≈ In line |
| EPS growth, 3 years a year | +8.1% | Average beats 50% | +8.1% | – | – |
| Profitability | |||||
| Operating margin | 37.0% | Good beats 95% | 22.9% | 35.7% | ≈ In line |
| Net margin | 21.4% | Good beats 88% | 14.4% | 22.4% | ≈ In line |
| Return on invested capital | 5.6% | Average beats 66% | 5.5% | – | – |
| Return on equity | 9.7% | Average beats 47% | 10.1% | 10.3% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 5.5x | Good beats 72% | 5.8x | 5.7x | ≈ In line |
| Interest cover | 3.0x | Good beats 73% | 2.5x | 3.2x | ≈ In line |
| Current ratio | 0.52 | Bad beats 11% | 0.78 | 0.46 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 58% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 24.9x | Bad beats 24% | 21.8x | 27.0x | ≈ In line |
| Price / book | 2.4x | Bad beats 27% | 2.1x | 2.6x | ≈ In line |
| Price / sales | 5.3x | Bad beats 12% | 2.9x | 6.0x | ▲ Better |
| EV / EBITDA | 15.2x | Average beats 34% | 14.0x | 17.0x | ▲ Better |
| Free cash flow yield | -3.7% | Average beats 60% | -4.9% | -3.3% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | -19.5% | Bad beats 15% | -9.1% | -17.4% | ▼ Worse |
| Cash from operations / net income | 2.07 | Bad beats 31% | 2.20 | 1.85 | ▲ Better |
| Accruals (lower is better) | −3.3% | Average beats 56% | −3.3% | – | – |
| Efficiency | |||||
| Days sales outstanding | 30 days | Good beats 78% | 44 days | 29 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 8 Average · ● 1 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginGood
Each check is graded against the company's sector, not a fixed number. Checklist score 65/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.9B | $3.8B | $4.2B | $4.7B | $5.1B |
| Operating income | $1.2B | $1.3B | $1.5B | $1.7B | $1.9B |
| Net income | $1.3B | $820M | $944M | $1.1B | $1.1B |
| Operating cash flow | $1.4B | $1.1B | $1.9B | $2.0B | $2.1B |
| Operating margin | 30.6% | 33.8% | 35.7% | 36.9% | 36.7% |
| Free cash flow | −$323M | −$1.2B | −$701M | −$811M | −$1.1B |
| Diluted EPS | $6.95 | $4.51 | $4.90 | $5.39 | $5.69 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 133.6 | Bullish |
| EMA 10 | 134.7 | Bullish |
| SMA 20 | 131.2 | Bullish |
| EMA 20 | 133.4 | Bullish |
| SMA 50 | 134.9 | Bullish |
| EMA 50 | 133.5 | Bullish |
| SMA 100 | 132.5 | Bullish |
| EMA 100 | 132.8 | Bullish |
| SMA 200 | 130.9 | Bullish |
| EMA 200 | 132.0 | Bullish |
Oscillators (daily)
| RSI (14) | 71.57 | Bearish |
| MACD (12, 26) | 0.86 | Bullish |
| Momentum (12) | 11.86 | Bullish |
| Stochastic %K (14) | 99.79 | Bearish |
| Williams %R (14) | -0.21 | Bearish |
| CCI (20) | 231.4 | Bearish |
Pivot points (classic, last session)
S3 129.5 | S2 132.3 | S1 137.8 | Pivot 140.5 | R1 146.0 | R2 148.7 | R3 154.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.45 USD
Yield on today's price
2.41%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.8950 | |
| 0.8950 | |
| 0.8280 | |
| 0.8280 | |
| 0.8280 | |
| 0.8280 | |
| 0.7650 | |
| 0.7650 | |
| 0.7650 | |
| 0.7650 | |
| 0.7080 | |
| 0.7080 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold AWK
| ETF | Share of the fund |
|---|---|
| PHO Invesco Water Resources | 4.12% |
| GQGU The Advisors’ Inner Circle Fund III | 3.59% |
| XLU Utilities Select Sector SPDR | 1.81% |
| FUTY Fidelity MSCI Utilities Index | 1.71% |
| IDU iShares U.S. Utilities | 1.61% |
| VPU Vanguard Utilities | 1.48% |
| GUNR FlexShares Morningstar Global Upstream... | 1.22% |
| IFRA iShares U.S. Infrastructure | 0.69% |
The eight funds with the largest weight in AWK among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
AWK SEC filings
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.