American Water Works Stock Performance
| AWK Stock | USD 137.59 0.72 0.52% |
The firm shows a Beta (market volatility) of 0.14, which signifies not very significant fluctuations relative to the market. As returns on the market increase, American Water's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Water is expected to be smaller as well. At this point, American Water Works has a negative expected return of -0.0467%. Please make sure to confirm American Water's total risk alpha, as well as the relationship between the skewness and day median price , to decide if American Water Works performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days American Water Works has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, American Water is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors. ...more
Actual Historical Performance (%)
One Day Return 0.52 | Five Day Return (0.49) | Year To Date Return 3.6 | Ten Year Return 160.72 | All Time Return 571.41 |
Forward Dividend Yield 0.0222 | Payout Ratio 0.5982 | Last Split Factor 2:1 | Forward Dividend Rate 3.06 | Dividend Date 2024-12-03 |
1 | SJW Q3 Earnings Match Estimates | 10/28/2024 |
2 | Pennsylvania American Water Completes Acquisition of Sadsbury Township Wastewater Collection System | 11/01/2024 |
3 | American Water to Contribute Expertise to Several Panels at the 2024 NARUC Annual Meeting and Education Conference | 11/08/2024 |
4 | Empower Advisory Group LLC Acquires 194 Shares of American Water Works Company, Inc. | 11/14/2024 |
5 | Second Half Financial Partners LLC Acquires New Position in American Water Works Company, Inc. | 11/19/2024 |
6 | American Water Provides Tips for Identifying Scammers on Utility Scam Awareness Day | 11/20/2024 |
7 | Pennsylvania American Water Completes Acquisition of Farmington Township Water and Wastewater ... | 11/21/2024 |
8 | California American Water Relocates Infrastructure to Facilitate Fort Ord Regional Trail and ... | 11/22/2024 |
9 | California American Water Provides Tips for Disposal of Fats, Oils and Cooking Grease to Protect Residential Plumbing and Wastewater Systems | 11/25/2024 |
10 | Local Officials Tour Illinois American Waters New Water Treatment Plant in Lincoln District | 11/26/2024 |
| Begin Period Cash Flow | 117 M |
American |
American Water Relative Risk vs. Return Landscape
If you would invest 14,232 in American Water Works on August 30, 2024 and sell it today you would lose (473.00) from holding American Water Works or give up 3.32% of portfolio value over 90 days. American Water Works is generating negative expected returns assuming volatility of 1.1823% on return distribution over 90 days investment horizon. In other words, 10% of stocks are less volatile than American, and above 99% of all equities are expected to generate higher returns over the next 90 days. Expected Return |
| Risk |
American Water Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Water's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as American Water Works, and traders can use it to determine the average amount a American Water's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0395
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| Negative Returns | AWK |
Estimated Market Risk
| 1.18 actual daily | 10 90% of assets are more volatile |
Expected Return
| -0.05 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.04 actual daily | 0 Most of other assets perform better |
Based on monthly moving average American Water is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Water by adding American Water to a well-diversified portfolio.
American Water Fundamentals Growth
American Stock prices reflect investors' perceptions of the future prospects and financial health of American Water, and American Water fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Stock performance.
| Return On Equity | 0.097 | ||||
| Return On Asset | 0.0334 | ||||
| Profit Margin | 0.22 % | ||||
| Operating Margin | 0.42 % | ||||
| Current Valuation | 40.26 B | ||||
| Shares Outstanding | 194.89 M | ||||
| Price To Earning | 38.22 X | ||||
| Price To Book | 2.59 X | ||||
| Price To Sales | 5.97 X | ||||
| Revenue | 4.23 B | ||||
| Gross Profit | 2.2 B | ||||
| EBITDA | 2.36 B | ||||
| Net Income | 944 M | ||||
| Cash And Equivalents | 85 M | ||||
| Cash Per Share | 0.53 X | ||||
| Total Debt | 12.44 B | ||||
| Debt To Equity | 1.55 % | ||||
| Current Ratio | 0.59 X | ||||
| Book Value Per Share | 53.17 X | ||||
| Cash Flow From Operations | 1.87 B | ||||
| Earnings Per Share | 5.06 X | ||||
| Market Capitalization | 26.96 B | ||||
| Total Asset | 30.3 B | ||||
| Retained Earnings | 1.66 B | ||||
| Working Capital | (762 M) | ||||
| Current Asset | 657 M | ||||
| Current Liabilities | 1.53 B | ||||
About American Water Performance
By examining American Water's fundamental ratios, stakeholders can obtain critical insights into American Water's financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that American Water is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
| Last Reported | Projected for Next Year | ||
| Days Of Inventory On Hand | 23.77 | 24.96 | |
| Return On Tangible Assets | 0.03 | 0.02 | |
| Return On Capital Employed | 0.05 | 0.04 | |
| Return On Assets | 0.03 | 0.02 | |
| Return On Equity | 0.10 | 0.09 |
Things to note about American Water Works performance evaluation
Checking the ongoing alerts about American Water for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for American Water Works help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| 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 | |
| Latest headline from businesswire.com: Local Officials Tour Illinois American Waters New Water Treatment Plant in Lincoln District |
- Analyzing American Water's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Water's stock is overvalued or undervalued compared to its peers.
- Examining American Water's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating American Water's management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Water's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of American Water's stock. These opinions can provide insight into American Water's potential for growth and whether the stock is currently undervalued or overvalued.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in 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. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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 5.06 | Revenue Per Share 23.124 | 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.