American Water Works Stock Analysis

AWK Stock  USD 125.66  1.21  0.95%   
American Water Works is undervalued with Real Value of 134.03 and Target Price of 140.69. The main objective of American Water stock analysis is to determine its intrinsic value, which is an estimate of what American Water Works is worth, separate from its market price. There are two main types of American Water's stock analysis: fundamental analysis and technical analysis.
The American Water stock is traded in the USA on New York Stock Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA.
  
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.

American Stock Analysis Notes

About 95.0% of the company shares are held by institutions such as insurance companies. The book value of American Water was presently reported as 53.17. The company has Price/Earnings To Growth (PEG) ratio of 2.8. American Water Works recorded earning per share (EPS) of 5.04. The entity last dividend was issued on the 7th of February 2025. The firm had 2:1 split on the 26th of July 1996. American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under UtilitiesRegulated Water classification in the United States and is traded on New York Stock Exchange. It employs 6400 people. For more info on American Water Works please contact M Hardwick at 856 955 4001 or go to https://www.amwater.com.

American Water Quarterly Total Revenue

1.32 Billion

American Water Works Investment Alerts

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 95.0% of American Water shares are held by institutions such as insurance companies
Latest headline from businesswire.com: Algonquin Power Utilities Corp. Announces Interim CFO Appointment

American Water Works Upcoming and Recent Events

14th of February 2024
Upcoming Quarterly Report
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24th of April 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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14th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
View

American Largest EPS Surprises

Earnings surprises can significantly impact American Water's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2010-03-01
2009-12-310.240.21-0.0312 
2009-02-25
2008-12-310.260.23-0.0311 
2009-05-05
2009-03-310.150.190.0426 
View All Earnings Estimates

American Water Environmental, Social, and Governance (ESG) Scores

American Water's ESG score is a quantitative measure that evaluates American Water's performance and commitment regarding environmental, social, and governance (ESG) factors. These scores are becoming increasingly crucial in investment decision-making processes, providing insights into non-financial aspects of American Water's operations that may have significant financial implications and affect American Water's stock price as well as guide investors towards more socially responsible investments.

American Water Thematic Classifications

In addition to having American Water stock in your portfolios, you can 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 favorite investment opportunity, you can then obtain an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility. If you are a result-oriented investor, you can benefit from optimizing one of our existing themes to build an efficient portfolio against your specific investing outlook.
Utilities Idea
Utilities
USA Equities from Utilities industry as classified by Fama & French

American Stock Institutional Investors

Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Morgan Stanley - Brokerage Accounts2024-09-30
2.9 M
Amvescap Plc.2024-09-30
2.7 M
Ubs Asset Mgmt Americas Inc2024-09-30
2.7 M
Goldman Sachs Group Inc2024-09-30
2.4 M
Nordea Investment Mgmt Bank Demark A/s2024-12-31
2.4 M
Allspring Global Investments Holdings, Llc2024-12-31
2.2 M
Royal Bank Of Canada2024-09-30
2.1 M
Bank Of America Corp2024-09-30
1.9 M
Jpmorgan Chase & Co2024-09-30
1.9 M
Vanguard Group Inc2024-09-30
24.9 M
Blackrock Inc2024-09-30
17.7 M
Note, although American Water's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

American Market Capitalization

The company currently falls under 'Large-Cap' category with a total capitalization of 24.49 B.

American Profitablity

The company has Net Profit Margin of 0.22 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.42 %, which entails that for every 100 dollars of revenue, it generated $0.42 of operating income.
Last ReportedProjected for Next Year
Return On Tangible Assets 0.04  0.02 
Return On Capital Employed 0.06  0.04 
Return On Assets 0.04  0.02 
Return On Equity 0.11  0.09 

Management Efficiency

American Water Works has Return on Asset of 0.0334 % which means that on every $100 spent on assets, it made $0.0334 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.097 %, implying that it generated $0.097 on every 100 dollars invested. American Water's management efficiency ratios could be used to measure how well American Water manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to 0.02. The value of Return On Capital Employed is expected to slide to 0.04. At this time, American Water's Total Current Liabilities is quite stable compared to the past year. Liabilities And Stockholders Equity is expected to rise to about 36.6 B this year, although the value of Change To Liabilities is projected to rise to (151.3 M).
Last ReportedProjected for Next Year
Book Value Per Share 58.38  55.46 
Tangible Book Value Per Share 51.57  48.99 
Enterprise Value Over EBITDA 18.32  32.76 
Price Book Value Ratio 2.34  1.62 
Enterprise Value Multiple 18.32  32.76 
Price Fair Value 2.34  1.62 
Enterprise Value3.1 BB
Effective management at American Water has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield
0.0244
Operating Margin
0.4157
Profit Margin
0.2177
Forward Dividend Yield
0.0244
Beta
0.715

Technical Drivers

As of the 16th of February 2025, American Water shows the risk adjusted performance of (0.04), and Mean Deviation of 0.9399. American Water Works technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

American Water Works Price Movement Analysis

Execute Study
The output start index for this execution was nineteen with a total number of output elements of fourty-two. The Bollinger Bands is very popular indicator that was developed by John Bollinger. It consist of three lines. American Water middle band is a simple moving average of its typical price. The upper and lower bands are (N) standard deviations above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively. The upper and lower bands can also be interpreted as price targets for American Water Works. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price target.

American Water Works Insider Trading Activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Water insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Water's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Water insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

American Water Outstanding Bonds

American Water issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Water Works uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Water Works has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

American Water Predictive Daily Indicators

American Water intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Water stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

American Water Corporate Filings

F4
4th of February 2025
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8th of January 2025
Other Reports
ViewVerify
8K
6th of December 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F4
25th of November 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
12th of November 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
5th of November 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
10Q
30th of October 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
8K
10th of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify

American Water Forecast Models

American Water's time-series forecasting models are one of many American Water's stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary American Water's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

About American Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how American Water prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling American shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as American Water. By using and applying American Stock analysis, traders can create a robust methodology for identifying American entry and exit points for their positions.
Last ReportedProjected for Next Year
Pretax Profit Margin 0.25  0.14 
Operating Profit Margin 0.32  0.34 
Net Profit Margin 0.20  0.21 
Gross Profit Margin 0.53  0.42 

Current American Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. American analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. American analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
140.69Buy15Odds
American Water Works current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most American analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand American stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of American Water Works, talking to its executives and customers, or listening to American conference calls.
American Analyst Advice Details

American Stock Analysis Indicators

American Water Works stock analysis indicators help investors evaluate how American Water stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading American Water shares will generate the highest return on investment. By understating and applying American Water stock analysis, traders can identify American Water position entry and exit signals to maximize returns.
Begin Period Cash Flow117 M
Long Term Debt11.7 B
Common Stock Shares Outstanding193 M
Total Stockholder Equity9.8 B
Tax Provision252 M
Quarterly Earnings Growth Y O Y0.084
Property Plant And Equipment Net25.5 B
Cash And Short Term Investments330 M
Cash330 M
Accounts Payable294 M
Net Debt12.1 B
50 Day M A125.7322
Total Current Liabilities2.2 B
Other Operating Expenses2.7 B
Non Current Assets Total28.9 B
Forward Price Earnings21.9298
Non Currrent Assets Other2.1 B
Stock Based Compensation25 M
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:
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 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
5.04
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.