American Water Works Stock Z Score

AWK Stock

USD 138.79 0.90 0.65%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out American Water Piotroski F Score and American Water Valuation analysis.

At this time, American Water's Change In Working Capital is quite stable compared to the past year. Capital Expenditures is expected to rise to about 2.9 B this year, although the value of Net Working Capital will most likely fall to (800.1 M). At this time, American Water's Income Before Tax is quite stable compared to the past year. Net Income is expected to rise to about 991.2 M this year, although the value of Gross Profit will most likely fall to about 1.3 B.

American Water Works Company Z Score Analysis

American Water's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

American Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for American Water is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Z Score. Since American Water's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American Water's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American Water's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock	Long Term Debt	Short Term Investments	Property Plant Equipment	Treasury Stock	Good Will	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.98	0.99	0.64	0.94	1.0	0.86	0.47	-0.44	0.38	0.68	-0.67	0.62	0.55	0.25	0.07	0.26	0.61	0.75	0.82	-0.4	-0.71	0.6	0.29	0.82	0.69	-0.56
Total Stockholder Equity	0.98		0.96	0.65	0.93	0.96	0.79	0.33	-0.37	0.4	0.61	-0.64	0.56	0.64	0.14	0.04	0.2	0.6	0.71	0.85	-0.35	-0.62	0.49	0.21	0.82	0.68	-0.69
Net Debt	0.99	0.96		0.68	0.91	1.0	0.89	0.5	-0.48	0.36	0.75	-0.63	0.68	0.56	0.24	0.08	0.24	0.62	0.79	0.81	-0.45	-0.72	0.64	0.32	0.85	0.7	-0.51
Retained Earnings	0.64	0.65	0.68		0.47	0.62	0.67	0.11	-0.76	-0.12	0.8	0.13	0.67	0.57	-0.11	0.22	0.12	0.58	0.82	0.81	-0.64	-0.56	0.47	0.22	0.89	0.69	-0.62
Net Receivables	0.94	0.93	0.91	0.47		0.93	0.74	0.52	-0.27	0.39	0.53	-0.78	0.4	0.45	0.26	0.07	0.19	0.63	0.57	0.69	-0.14	-0.7	0.55	0.2	0.66	0.5	-0.48
Total Liab	1.0	0.96	1.0	0.62	0.93		0.88	0.53	-0.46	0.37	0.69	-0.68	0.64	0.5	0.3	0.08	0.28	0.6	0.75	0.79	-0.41	-0.74	0.65	0.33	0.8	0.69	-0.49
Total Current Assets	0.86	0.79	0.89	0.67	0.74	0.88		0.51	-0.54	0.21	0.66	-0.45	0.67	0.33	0.44	0.12	0.32	0.56	0.79	0.72	-0.45	-0.69	0.65	0.63	0.79	0.82	-0.38
Short Term Debt	0.47	0.33	0.5	0.11	0.52	0.53	0.51		-0.42	0.07	0.44	-0.47	0.39	-0.09	0.34	0.2	0.38	0.15	0.31	0.18	-0.28	-0.66	0.88	0.46	0.22	0.03	0.2
Intangible Assets	-0.44	-0.37	-0.48	-0.76	-0.27	-0.46	-0.54	-0.42		0.33	-0.65	-0.2	-0.7	-0.09	-0.18	-0.26	-0.43	-0.17	-0.62	-0.55	0.85	0.67	-0.77	-0.25	-0.56	-0.54	0.28
Accounts Payable	0.38	0.4	0.36	-0.12	0.39	0.37	0.21	0.07	0.33		0.12	-0.66	0.26	0.43	-0.09	-0.3	-0.36	0.17	0.28	0.26	0.06	0.14	-0.1	-0.09	0.27	0.1	0.04
Current Deferred Revenue	0.68	0.61	0.75	0.8	0.53	0.69	0.66	0.44	-0.65	0.12		-0.12	0.72	0.57	-0.11	0.15	-0.02	0.57	0.81	0.61	-0.62	-0.59	0.62	0.17	0.81	0.45	-0.28
Common Stock	-0.67	-0.64	-0.63	0.13	-0.78	-0.68	-0.45	-0.47	-0.2	-0.66	-0.12		-0.15	-0.2	-0.39	0.13	-0.12	-0.28	-0.18	-0.27	-0.14	0.37	-0.28	-0.1	-0.21	-0.2	0.11
Long Term Debt	0.62	0.56	0.68	0.67	0.4	0.64	0.67	0.39	-0.7	0.26	0.72	-0.15		0.45	0.06	-0.02	0.14	0.31	0.85	0.69	-0.87	-0.52	0.59	0.28	0.78	0.64	-0.21
Short Term Investments	0.55	0.64	0.56	0.57	0.45	0.5	0.33	-0.09	-0.09	0.43	0.57	-0.2	0.45		-0.56	-0.13	-0.32	0.38	0.53	0.6	-0.31	-0.01	0.06	-0.04	0.72	0.26	-0.66
Property Plant Equipment	0.25	0.14	0.24	-0.11	0.26	0.3	0.44	0.34	-0.18	-0.09	-0.11	-0.39	0.06	-0.56		0.08	0.49	-0.06	-0.01	-0.06	-0.02	-0.4	0.33	0.4	-0.12	0.44	0.16
Treasury Stock	0.07	0.04	0.08	0.22	0.07	0.08	0.12	0.2	-0.26	-0.3	0.15	0.13	-0.02	-0.13	0.08		0.15	0.17	0.13	0.11	-0.01	-0.25	0.19	0.05	0.09	0.1	-0.03
Good Will	0.26	0.2	0.24	0.12	0.19	0.28	0.32	0.38	-0.43	-0.36	-0.02	-0.12	0.14	-0.32	0.49	0.15		-0.14	0.08	0.25	-0.25	-0.5	0.51	0.43	0.03	0.33	-0.2
Net Tangible Assets	0.61	0.6	0.62	0.58	0.63	0.6	0.56	0.15	-0.17	0.17	0.57	-0.28	0.31	0.38	-0.06	0.17	-0.14		0.71	0.65	-0.01	-0.61	0.15	0.07	0.7	0.46	-0.23
Long Term Debt Total	0.75	0.71	0.79	0.82	0.57	0.75	0.79	0.31	-0.62	0.28	0.81	-0.18	0.85	0.53	-0.01	0.13	0.08	0.71		0.87	-0.64	-0.64	0.49	0.29	0.94	0.73	-0.31
Capital Surpluse	0.82	0.85	0.81	0.81	0.69	0.79	0.72	0.18	-0.55	0.26	0.61	-0.27	0.69	0.6	-0.06	0.11	0.25	0.65	0.87		-0.53	-0.62	0.42	0.21	0.92	0.74	-0.65
Deferred Long Term Liab	-0.4	-0.35	-0.45	-0.64	-0.14	-0.41	-0.45	-0.28	0.85	0.06	-0.62	-0.14	-0.87	-0.31	-0.02	-0.01	-0.25	-0.01	-0.64	-0.53		0.42	-0.61	-0.2	-0.58	-0.51	0.26
Long Term Investments	-0.71	-0.62	-0.72	-0.56	-0.7	-0.74	-0.69	-0.66	0.67	0.14	-0.59	0.37	-0.52	-0.01	-0.4	-0.25	-0.5	-0.61	-0.64	-0.62	0.42		-0.75	-0.25	-0.55	-0.53	0.19
Short Long Term Debt	0.6	0.49	0.64	0.47	0.55	0.65	0.65	0.88	-0.77	-0.1	0.62	-0.28	0.59	0.06	0.33	0.19	0.51	0.15	0.49	0.42	-0.61	-0.75		0.48	0.45	0.31	-0.13
Cash And Equivalents	0.29	0.21	0.32	0.22	0.2	0.33	0.63	0.46	-0.25	-0.09	0.17	-0.1	0.28	-0.04	0.4	0.05	0.43	0.07	0.29	0.21	-0.2	-0.25	0.48		0.29	0.35	-0.08
Net Invested Capital	0.82	0.82	0.85	0.89	0.66	0.8	0.79	0.22	-0.56	0.27	0.81	-0.21	0.78	0.72	-0.12	0.09	0.03	0.7	0.94	0.92	-0.58	-0.55	0.45	0.29		0.72	-0.57
Net Working Capital	0.69	0.68	0.7	0.69	0.5	0.69	0.82	0.03	-0.54	0.1	0.45	-0.2	0.64	0.26	0.44	0.1	0.33	0.46	0.73	0.74	-0.51	-0.53	0.31	0.35	0.72		-0.49
Capital Stock	-0.56	-0.69	-0.51	-0.62	-0.48	-0.49	-0.38	0.2	0.28	0.04	-0.28	0.11	-0.21	-0.66	0.16	-0.03	-0.2	-0.23	-0.31	-0.65	0.26	0.19	-0.13	-0.08	-0.57	-0.49

Click cells to compare fundamentals

To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

Competition

Predict American Water

In accordance with the company's disclosures, American Water Works has a Z Score of 0.0. This is 100.0% lower than that of the Water Utilities sector and about the same as Utilities (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.

American Water ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Water's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Water's managers, analysts, and investors.

Environmental

Governance

Social

American Water Institutional Holders

Institutional Holdings refers to the ownership stake in American Water that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of American Water's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing American Water's value.

		Shares
Northern Trust Corp	2024-09-30	3 M
Bank Of America Corp	2024-06-30	3 M
Ubs Asset Mgmt Americas Inc	2024-09-30	2.7 M
Norges Bank	2024-06-30	2.4 M
Nordea Investment Mgmt Bank Demark A/s	2024-09-30	2.3 M
Royal Bank Of Canada	2024-06-30	2.2 M
Goldman Sachs Group Inc	2024-06-30	2.2 M
Allspring Global Investments Holdings, Llc	2024-06-30	2.1 M
Ameriprise Financial Inc	2024-06-30	1.8 M
Vanguard Group Inc	2024-09-30	24.9 M
Blackrock Inc	2024-06-30	18.5 M

American Fundamentals

	Return On Equity	0.097
	Return On Asset	0.0334
	Profit Margin	0.22 %
	Operating Margin	0.42 %
	Current Valuation	40.17 B
	Shares Outstanding	194.89 M
	Shares Owned By Insiders	0.12 %
	Shares Owned By Institutions	93.68 %
	Number Of Shares Shorted	3.68 M
	Price To Earning	38.22 X
	Price To Book	2.59 X
	Price To Sales	5.95 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
	Short Ratio	3.86 X
	Earnings Per Share	5.04 X
	Price To Earnings To Growth	3.08 X
	Target Price	142.59
	Number Of Employees	6.5 K
	Beta	0.7
	Market Capitalization	26.87 B
	Total Asset	30.3 B
	Retained Earnings	1.66 B
	Working Capital	(762 M)
	Current Asset	657 M
	Current Liabilities	1.53 B
	Annual Yield	0.02 %
	Five Year Return	1.63 %
	Net Asset	30.3 B
	Last Dividend Paid	2.95

About American Water Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze American Water Works's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Water using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Water Works based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:

How To Invest In American

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Is American Stock a good investment?

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What is American Water's Net Worth?

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Largest Water Utilities Companies

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Largest Utilities - Regulated Water Companies

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Check out American Water Piotroski F Score and American Water Valuation analysis.

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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

5.04

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.

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American Water Works Stock Z Score

American Water Works Company Z Score Analysis

Z Score

Sum Of

5 Factors

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

American Z Score Driver Correlations

American Water ESG Sustainability

American Water Institutional Holders

American Fundamentals

About American Water Fundamental Analysis

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