American Water Works Stock Buy Hold or Sell Recommendation
| AWK Stock | USD 126.60 0.24 0.19% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding American Water Works is 'Strong Hold'. The recommendation algorithm takes into account all of American Water's available fundamental, technical, and predictive indicators you will find on this site.
Check out American Water Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' constraints. American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
American |
Execute American Water Buy or Sell Advice
The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Water Works. Macroaxis does not own or have any residual interests in American Water Works or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Water's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
American Water Trading Alerts and Improvement Suggestions
| American Water Works generated a negative expected return over the last 90 days | |
| American Water Works has 12.44 B in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. American Water Works has a current ratio of 0.58, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for American to invest in growth at high rates of return. | |
| Over 94.0% of American Water shares are held by institutions such as insurance companies | |
| On 3rd of December 2024 American Water paid $ 0.765 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: American Water Works Co Inc Announces Leadership Changes in Kentucky and West Virginia ... |
American Water Returns Distribution Density
The distribution of American Water's historical returns is an attempt to chart the uncertainty of American Water's future price movements. The chart of the probability distribution of American Water daily returns describes the distribution of returns around its average expected value. We use American Water Works price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Water returns is essential to provide solid investment advice for American Water.
| Mean Return | -0.14 | Value At Risk | -2.15 | Potential Upside | 1.78 | Standard Deviation | 1.17 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Water historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
American Stock Institutional Investors
| Shares | Amvescap Plc. | 2024-09-30 | 2.7 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.7 M | Goldman Sachs Group Inc | 2024-09-30 | 2.4 M | Norges Bank | 2024-06-30 | 2.4 M | Nordea Investment Mgmt Bank Demark A/s | 2024-09-30 | 2.3 M | Allspring Global Investments Holdings, Llc | 2024-09-30 | 2.2 M | Royal Bank Of Canada | 2024-09-30 | 2.1 M | Bank Of America Corp | 2024-09-30 | 1.9 M | Ameriprise Financial Inc | 2024-09-30 | 1.9 M | Vanguard Group Inc | 2024-09-30 | 24.9 M | Blackrock Inc | 2024-09-30 | 17.7 M |
American Water Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 485M | (440M) | (19M) | 247M | 222.3M | 233.4M | |
| Free Cash Flow | (502M) | (432M) | (1.3B) | (860M) | (774M) | (735.3M) | |
| Depreciation | 604M | 636M | 649M | 704M | 809.6M | 850.1M | |
| Other Non Cash Items | (59M) | (63M) | (86M) | (34M) | (30.6M) | (29.1M) | |
| Dividends Paid | 389M | 428M | 467M | 532M | 611.8M | 642.4M | |
| Capital Expenditures | 1.9B | 1.9B | 2.4B | 2.7B | 3.1B | 3.3B | |
| Net Income | 709M | 1.3B | 820M | 944M | 1.1B | 1.1B | |
| End Period Cash Flow | 576M | 136M | 117M | 364M | 418.6M | 439.5M | |
| Change To Netincome | 211M | 168M | 163M | 64M | 73.6M | 69.9M | |
| Change Receivables | (25M) | (97M) | (74M) | (114M) | (102.6M) | (97.5M) | |
| Net Borrowings | 883M | 1.0B | 522M | 1.4B | 1.6B | 1.7B | |
| Investments | (2.1B) | (1.5B) | (2.1B) | (2.8B) | (2.5B) | (2.7B) |
American Water Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Water or Water Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Water's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.16 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 1.18 | |
Ir | Information ratio | -0.15 |
American Water Volatility Alert
American Water Works exhibits very low volatility with skewness of -0.22 and kurtosis of 0.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Water's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Water's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.American Water Fundamentals Vs Peers
Comparing American Water's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Water's direct or indirect competition across all of the common fundamentals between American Water and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Water or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Water's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Water by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare American Water to competition |
| Fundamentals | American Water | Peer Average |
| Return On Equity | 0.097 | -0.31 |
| Return On Asset | 0.0334 | -0.14 |
| Profit Margin | 0.22 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 37.93 B | 16.62 B |
| Shares Outstanding | 194.89 M | 571.82 M |
| Shares Owned By Insiders | 0.12 % | 10.09 % |
| Shares Owned By Institutions | 93.92 % | 39.21 % |
| Number Of Shares Shorted | 4.43 M | 4.71 M |
| Price To Earning | 38.22 X | 28.72 X |
| Price To Book | 2.38 X | 9.51 X |
| Price To Sales | 5.46 X | 11.42 X |
| Revenue | 4.23 B | 9.43 B |
| Gross Profit | 2.7 B | 27.38 B |
| EBITDA | 2.36 B | 3.9 B |
| Net Income | 944 M | 570.98 M |
| Cash And Equivalents | 85 M | 2.7 B |
| Cash Per Share | 0.53 X | 5.01 X |
| Total Debt | 12.44 B | 5.32 B |
| Debt To Equity | 1.55 % | 48.70 % |
| Current Ratio | 0.59 X | 2.16 X |
| Book Value Per Share | 53.17 X | 1.93 K |
| Cash Flow From Operations | 1.87 B | 971.22 M |
| Short Ratio | 3.87 X | 4.00 X |
| Earnings Per Share | 5.05 X | 3.12 X |
| Price To Earnings To Growth | 2.82 X | 4.89 X |
| Target Price | 140.33 | |
| Number Of Employees | 6.5 K | 18.84 K |
| Beta | 0.7 | -0.15 |
| Market Capitalization | 24.67 B | 19.03 B |
| Total Asset | 30.3 B | 29.47 B |
| Retained Earnings | 1.66 B | 9.33 B |
| Working Capital | (762 M) | 1.48 B |
Note: Disposition of tradable shares by David Bowler of American Water subject to Rule 16b-3 [view details]
American Water Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About American Water Buy or Sell Advice
When is the right time to buy or sell American Water Works? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having American Water in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out American Water Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.084 | Dividend Share 2.945 | Earnings Share 5.05 | Revenue Per Share | Quarterly Revenue Growth 0.134 |
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.