AWK:NYE-American Water Works Company, Inc (USD)

COMMON STOCK | Utilities-Regulated Water | NYE

Last Closing Price

USD 157.13

Change

+1.72 (+1.11)%

Market Cap

USD 28.20B

Volume

0.90M

Average Target Price

USD 172.80 (+9.97%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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 16 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, such as 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 various warranty protection programs to residential customers; and water and wastewater services on various military installations. In addition, the company undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. It operates approximately 79 surface water treatment plants; 530 groundwater treatment plants; 150 wastewater treatment plants; 53,200 miles of transmission, distribution, and collection mains and pipes; 1,100 groundwater wells; 1,600 water and wastewater pumping stations; 1,300 treated water storage facilities; and 75 dams. The company serves approximately 15 million people with drinking water, wastewater, and other water-related services in 46 states. The company was founded in 1886 and is headquartered in Camden, New Jersey.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-04-14 )

Largest Industry Peers for Utilities-Regulated Water

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
SBS Companhia de Saneamento Básic..

-0.07 (-0.93%)

USD5.18B 30.08 1.16
CWT California Water Service Group

+0.47 (+0.80%)

USD2.96B 29.94 15.93
AWR American States Water Company

+0.60 (+0.76%)

USD2.90B 33.74 19.48
SJW SJW Group

+1.46 (+2.23%)

USD1.94B 30.54 16.05
WAAS AquaVenture Holdings Limited

N/A

USD0.86B N/A 17.63

ETFs Containing AWK

Symbol Name Weight Mer Price(Change) Market Cap
CGW Invesco S&P Global Water .. 0.00 % 0.57 %

+0.04 (+0.08%)

USD0.88B
CWW:CA iShares Global Water Inde.. 0.00 % 0.60 %

-0.01 (-0.02%)

USD0.28B
DEF Invesco Defensive Equity .. 0.00 % 0.53 %

-0.23 (-0.36%)

USD0.25B
FIW First Trust Water ETF 0.00 % 0.55 %

+0.06 (+0.07%)

USD0.77B
GUNR FlexShares Morningstar Gl.. 0.00 % 0.46 %

+0.72 (+1.96%)

USD4.26B
PHO Invesco Water Resources E.. 0.00 % 0.60 %

-0.06 (-0.12%)

USD1.47B
PIO Invesco Global Water ETF 0.00 % 0.75 %

-0.24 (-0.64%)

USD0.25B
PUI Invesco DWA Utilities Mom.. 0.00 % 0.60 %

+0.29 (+0.86%)

USD0.05B
RYU Invesco S&P 500 Equal Wei.. 0.00 % 0.40 %

+0.50 (+0.47%)

USD0.20B
UTES Virtus Reaves Utilities E.. 0.00 % 0.49 %

+0.28 (+0.66%)

USD0.03B
DH2O:LSE iShares Global Water UCIT.. 0.00 % 0.65 %

+0.30 (+0.49%)

USD1.82B
IH2O:LSE iShares Global Water UCIT.. 0.00 % 0.65 %

+3.00 (+0.07%)

USD1.94B
WATL:LSE Lyxor World Water (DR) UC.. 0.00 % 0.60 %

-7.00 (-0.16%)

USD0.93B
WAT:PA Lyxor World Water (DR) UC.. 0.00 % 0.60 %

-0.11 (-0.21%)

USD0.82B
IQQQ:F iShares Global Water UCIT.. 0.00 % 0.65 %

+0.13 (+0.26%)

USD1.82B
IQQQ:XETRA iShares Global Water UCIT.. 0.00 % 0.65 %

+0.02 (+0.04%)

USD1.97B

Market Performance

  Market Performance vs.
Industry/Classification (Utilities-Regulated Water)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 2.38% 80% B- 37% F
Dividend Return 0.36% 25% F 24% F
Total Return 2.74% 80% B- 35% F
Trailing 12 Months  
Capital Gain 21.61% 100% A+ 31% F
Dividend Return 1.70% 60% D- 21% F
Total Return 23.31% 100% A+ 29% F
Trailing 5 Years  
Capital Gain 120.50% 100% A+ 83% B
Dividend Return 12.88% 20% F 43% F
Total Return 133.38% 100% A+ 83% B
Average Annual (5 Year Horizon)  
Capital Gain 18.28% 100% A+ 85% B
Dividend Return 2.02% 80% B- 49% F
Total Return 20.30% 100% A+ 86% B
Risk Return Profile  
Volatility (Standard Deviation) 13.15% 100% A+ 71% C-
Risk Adjusted Return 154.42% 100% A+ 98% A+
Market Capitalization 28.20B 100% A+ 91% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Utilities-Regulated Water)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 39.75 20% F 20% F
Price/Book Ratio 4.26 40% F 25% F
Price / Cash Flow Ratio 19.78 60% D- 22% F
EV/EBITDA 20.52 20% F 32% F
Management Effectiveness  
Return on Equity 11.28% 60% D- 71% C-
Return on Invested Capital 6.27% 40% F 60% D-
Return on Assets 3.42% 60% D- 68% D+
Debt to Equity Ratio 144.55% 20% F 25% F
Technical Ratios  
Short Ratio 1.15 100% A+ 63% D
Short Percent 1.07% 100% A+ 82% B-
Beta 0.20 60% D- 90% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.