American Water Operating Margin vs. Revenue
| AWK Stock | USD 139.69 1.44 1.04% |
American Water Operating Profit Margin | 0.38 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.4333 |
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| Net Profit Margin | 0.23 | 0.2161 |
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| Operating Profit Margin | 0.38 | 0.3656 |
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| Pretax Profit Margin | 0.14 | 0.2767 |
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| Return On Assets | 0.0246 | 0.0304 |
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| Return On Equity | 0.0892 | 0.1025 |
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This analysis presents profitability ratios for American Water and highlights relationships among revenue, assets, and equity.
Trending Equities. Macro event markers
Dividend Share 3.248 | Earnings Share 5.69 | Revenue Per Share | Quarterly Revenue Growth 0.058 | Return On Assets |
Market capitalization and book value offer complementary views of American Water Works — the first driven by investor sentiment, the second by accounting standards. American Water's market capitalization is 27.27 B. A P/B ratio of 2.49 indicates the market values American Water above its accounting book value. Enterprise value stands at 42.81 B. Value and price for American Water are related but not identical, and they can diverge across cycles. Trading price represents the transaction level agreed by market participants.
Value and price for American Water are related but not identical, and they can diverge across cycles. For American Water, key inputs include a P/E ratio of 38.22, a P/B ratio of 2.49, a profit margin of 21.62%, and ROE of 10.5%. Market price reflects the current exchange level formed by active bids and offers.
American Water Works Revenue vs. Operating Margin Fundamental Analysis
Sector multiples frame American Water's current valuation context. American Water Works sits atop the peer group for operating margin within its peer group. It is rated below average for revenue within its peer group where Revenue runs almost 15,972,653,822 per Operating Margin. Operating Profit Margin is demonstrating a developing positively trend compared to prior periods. Previously, Operating Profit Margin was valued at 0.37. Earnings-driven valuation ratios benchmark American Water.American Water's Historical Earnings Breakdown by Geography
American Revenue vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
American Water |
| = | 0.32 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
American Water |
| = | 5.14 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
American Revenue vs Competition
American Water Works is rated below average for revenue within its peer group. Market size based on revenue of Utilities industry is presently estimated at about 153.69 Billion. American Water holds roughly 5.14 Billion in revenue claiming about 3% of Utilities industry.
American Water Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Water, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Water will eventually generate negative long term returns. The profitability progress is the general direction of American Water's change in net profit over the period of time. It can combine multiple indicators of American Water, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 6 M | 6.3 M | |
| Operating Income | 1.9 B | 2 B | |
| Income Before Tax | 1.4 B | 1.5 B | |
| Total Other Income Expense Net | -457 M | -434.1 M | |
| Net Income | 1.1 B | 1.2 B | |
| Income Tax Expense | 311 M | 173.6 M | |
| Net Income From Continuing Ops | 1.1 B | 704.5 M | |
| Non Operating Income Net Other | 193.2 M | 101.3 M | |
| Net Income Applicable To Common Shares | 1.1 B | 700.1 M | |
| Interest Income | 525 M | 551.2 M | |
| Net Interest Income | -525 M | -551.2 M | |
| Change To Netincome | 73.6 M | 69.9 M | |
| Net Income Per Share | 5.70 | 5.98 | |
| Income Quality | 1.85 | 1.36 | |
| Net Income Per E B T | 0.78 | 0.59 |
American Profitability Driver Comparison
The profitability drivers of American Water are the key factors that directly affect its earnings and investment outlook. Investors face a wide range of unpredictable events that can disrupt American Water's profitability and create unexpected shifts in market behavior and investment valuations.
Earnings per Share Projection vs Actual
Use American Water in pair-trading
Pair trading with American Water can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
American Water Pair Trading
American Water Works Pair Trading Analysis
Correlation analysis for American Water Works supports tax-loss harvesting by identifying similar assets that can temporarily replace American Water without violating wash-sale rules. Maintaining a high correlation to American Water Works during this period minimizes unintended changes to portfolio risk.
The correlation of American Water Works measures co-movement with other instruments on a scale from -1 to +1. Coefficients near +1 imply that paired assets move almost identically to American Water, while values near 0 indicate statistical independence and genuine diversification potential.
Pair evaluation and Correlation analysis for American Water provide hedging context. The method can be applied across sectors and broader equity sets.Use Investing Themes to Complement your American Water position
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More Resources for American Stock Analysis
A structured review of American Water Works often starts with core financial statements and trend context. Ratios and trend metrics help frame American Water's operating context. Selected reports below provide context for American Stock:Trending Equities. Analysis related to American Water should be read together with other portfolio and risk tools before capital is reallocated. That is especially important when the goal is to improve the overall mix of instruments already held. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Profitability projection for American Water Works starts with historical financial statements. The core view includes income statement, balance sheet, and cash flow.