AWK - American Water Works Company Inc.

Stock Details

American Water Works Company Inc. (AWK), a prominent company in the energy & transportation sector within the water supply industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $143.30. Over the past 52 weeks, it has ranged between $117.30 and $154.57. This places the current price at 92.7% of its 52-week high and 22.2% above its 52-week low. Recent trading volume was recorded at 1. The International Securities Identification Number (ISIN) for this stock is US0304201033.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

25.12

Above market average

Forward P/E

23.98

Earnings expected to grow

PEG Ratio

3.58

Potentially overvalued

Price to Book

2.55

EV/EBITDA

15.04

EPS (TTM)

$5.49

Price to Sales

5.59

Beta

0.70

Less volatile than market

How is AWK valued relative to its earnings and growth?

American Water Works Company Inc. trades at a P/E ratio of 25.12, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.98 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.58 indicates a premium valuation even accounting for growth.

What is AWK's risk profile compared to the market?

With a beta of 0.70, American Water Works Company Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.55 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

22.20%

Operating Margin

32.80%

Return on Equity

10.40%

Return on Assets

3.48%

Revenue Growth (YoY)

13.00%

Earnings Growth (YoY)

10.70%

How profitable and efficient is AWK's business model?

American Water Works Company Inc. achieves a profit margin of 22.20%, meaning it retains $22.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 10.40% and ROA at 3.48%, the company achieves moderate returns on invested capital.

What are AWK's recent growth trends?

American Water Works Company Inc.'s revenue grew by 13.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 10.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against WATER SUPPLY industry averages for proper context.

Dividend Information

Dividend Per Share

$3.06

Dividend Yield

2.40%

Ex-Dividend Date

5/13/2025

Dividend Date

6/3/2025

What dividend income can investors expect from AWK?

American Water Works Company Inc. offers a dividend yield of 2.40%, paying $3.06 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/13/2025.

How reliable is AWK's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - American Water Works Company Inc. pays $3.06 per share in dividends against earnings of $5.49 per share, resulting in a payout ratio of 55.74%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 6/3/2025.

Company Size & Market

Market Cap

$26.90B

Shares Outstanding

195.01M

Book Value/Share

$54.02

Asset Type

Common Stock

What is AWK's market capitalization and position?

American Water Works Company Inc. has a market capitalization of $26.90B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 195.01M shares outstanding, the company's ownership is relatively concentrated. As a participant in the WATER SUPPLY industry, it competes with other firms in this sector.

How does AWK's price compare to its book value?

American Water Works Company Inc.'s book value per share is $54.02, while the current stock price is $143.30, resulting in a price-to-book (P/B) ratio of 2.65. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$143.08

0.15% downside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for AWK?

16 analysts cover AWK with 19% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $143.08 implies -0.2% downside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on AWK?

Current analyst recommendations:03 Buy, 10 Hold, 1 Sell, 2 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:41 AM

American Water Works Company Inc. (AWK) Stock