AWK
American Water Works
$135.71
▲ 0.7%Updated Aug 7, 11:30 AM ET
AWK at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 55/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 11.4% over the last 12 months
Market Cap
$26.73B
P/E
23.87x
Forward P/E (est.)
23.2x
ROE
10.1%
Revenue Growth
8.1%
EPS Growth
2.9%
Profit Margin
21.2%
FCF Yield
6.6%
Debt / Equity
1.46x
ROIC
7.0%
Interest Coverage
6.31x
Current Ratio
0.37x
Dividend Yield
2.8%
Implied Growth (rev. DCF)
—
Rating Score
55/100
American Water Works (AWK) is a large-cap company in the Water Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $26.73B.
In its latest reported year it generated about $5.12B in revenue and $1.11B in net profit.
Our model rates AWK Neutral (55/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (8 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
36.4% average over the last 3 years
±2.1 pts around 34.1% across 8 years
grew in 6 of the last 7 year-over-year periods
positive in 0 of 8 years
7.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AWK's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AWK trades near $135.71, above its 50-day average ($126.97) and 200-day average ($131.74). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 79 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AWK's is $3.07 (~2.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AWK found buyers near $121.95 (support) and sellers near $136.93 (resistance); its 52-week range is $120.57–$147.87. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.3× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
7.0%
Revenue moved from $3.42B in 2018 to $5.12B in 2025, a 6.0% compound annual growth rate. The most recent year grew a steady 8.1% year over year. Slower, mature growth is common for established businesses.
Gross Margin
—
Operating Margin
36.7%
Net Margin
21.7%
ROE
10.1%
American Water Works keeps about 21.2% of each sales dollar as net profit. Return on equity is 10.1% and return on invested capital about 7.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$9.66B
Net Debt
$9.52B
Net Debt / EBITDA
5.07x
Debt / Equity
1.46x
Leverage: debt-to-equity is 1.5x, and operating profit covers interest about 6.3x, with a current ratio of 0.4x. That is a moderate, manageable debt load for most businesses. It carries roughly $9.66B of total debt against $137.00M of cash.
Operating CF
$2.06B
Free Cash Flow
-$1.07B
FCF Margin
-20.8%
In the latest year American Water Works produced about $2.06B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 6.6% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.8%
Per share (latest FY)
$3.31
Total paid (latest FY)
$633.00M
History on record
8 years
free cash flow was negative in the latest year — the dividend is being financed
57% of net income paid out
total dividends increased 7 years in a row
no cuts in the last 8 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
23.87x
P/S
4.85x
P/B
2.48x
EV / EBITDA
—
AWK trades at 23.9x trailing earnings (about 23.2x on estimated forward earnings), 4.8x sales, and 2.5x book value. That is a fairly typical valuation for a profitable company.
Where AWK sits versus its Utilities sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 38 Utilities companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How AWK stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
In the Utilities sector (47 S&P 500 companies), AWK ranks #15 of 47 by our overall rating. It trades at roughly in line versus the sector on earnings (23.9x P/E vs. 21.3x median) with a lower return on equity (10.1% vs. 10.3%) and slower revenue growth (8.1% vs. 8.8%).
P/E vs sector
23.9x
median 21.3x
ROE vs sector
10.1%
median 10.3%
Growth vs sector
8.1%
median 8.8%
Sector rank
#15
of 47 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 47 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $135.71 today · expected CAGR -3% – 8%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.53B | $5.97B | $6.45B | $6.97B | $7.52B |
| Net income | $1.22B | $1.31B | $1.42B | $1.53B | $1.66B |
| EPS | $6.18 | $6.67 | $7.21 | $7.78 | $8.41 |
| Share price (low) | $86.50 | $93.42 | $100.89 | $108.96 | $117.68 |
| Share price (high) | $148.28 | $160.14 | $172.96 | $186.79 | $201.74 |
| CAGR (low–high) | -36% / 9% | -17% / 9% | -9% / 8% | -5% / 8% | -3% / 8% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AWK:
- High net margins (21.2%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~6.6%) funds buybacks and dividends.
- Pays a 2.8% dividend on top of any price gains.
The case against AWK:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.5x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: American Water Works is a large-cap utilities business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 23.9x earnings, which our model scores Neutral (55/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 19 Wall Street analysts covering AWK recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+9 pts of buy ratings).
Latest SEC Filings
AWK's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
AWK — frequently asked questions
Is AWK a good stock to buy?
We don't give buy or sell advice. Our model rates American Water Works Neutral (55/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AWK's rating on The Stocks School?
American Water Works currently scores 55/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AWK's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from American Water Works's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AWK calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AWK analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AWK. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.