AWK
NEUTRAL
$129.71
Live
American Water Works Company, Inc. · NYSE
Target $141.54
(+9.1%)
$121.4
52W Range
$155.5
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$25.32B
P/E
23.08
ROE
10.5%
Profit margin
21.9%
Debt/Equity
1.41
Dividend yield
2.52%
AI Analysis
AI-powered fundamental assessment
Confidence
72%
American Water Works (AWK) exhibits a weak Piotroski F-Score of 4/9, indicating borderline financial health, and lacks an Altman Z-Score, limiting distress risk assessment. The stock trades above both the Graham Number ($84.07) and intrinsic value estimate ($107.62) at $129.71, reflecting a premium valuation despite solid profitability and regulated utility stability. Revenue and earnings growth are steady but not exceptional, while high debt/equity and poor liquidity ratios raise concerns. Analysts consensus is a 'hold' with a target price of $141.55, suggesting limited upside.
Key Strengths
High gross margin (60.75%) and operating margin (42.59%) reflect strong pricing power and cost control in a regulated environment
Consistent year-over-year revenue growth (9.70%) and earnings growth (~8%) demonstrate operational stability
Dividend yield of 2.52% is above sector average with a sustainable payout ratio (55.98%)
Market leader in regulated water utilities with defensive business model
Analyst target price implies ~9% upside from current levels
Key Risks
Low Piotroski F-Score (4/9) signals weak financial health, particularly in liquidity and leverage metrics
Very low current ratio (0.42) and quick ratio (0.31) indicate potential short-term liquidity pressure
High debt/equity ratio (1.41) exceeds sector average (1.68), increasing financial risk in rising rate environments
Valuation rich relative to Graham Number ($84.07) and intrinsic value ($107.62), offering limited margin of safety
Technical trend score of 0/100 and negative 6-month price performance (-6.4%) suggest weakening momentum
AI Fair Value Estimate
Based on comprehensive analysis
$107.62
-17.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
54
Moderate
45
60
55
40
70
AI Verdict
Neutral with moderate upside risk due to valuation and financial health concerns
Key drivers: Premium valuation relative to Graham and intrinsic models, Stable but unspectacular growth, Weak Piotroski score and liquidity metrics, Solid dividend profile, Hold analyst recommendation
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 23.08 in line with sector average (24.81)
- Forward P/E of 21.26 suggests some earnings growth priced in
Watchpoints
- Current price 53% above Graham Number ($84.07)
- No PEG ratio available; growth not clearly justifying premium
Future
60/100
Ref Growth rates
Positives
- Revenue growth (9.70% YoY) above sector average (8.62%)
- Earnings growth (8.10% YoY) stable and positive
Watchpoints
- Q/Q earnings growth fluctuates; most recent beat may not be sustainable
- No clear acceleration in growth trajectory
Past
55/100
Ref Historical trends
Positives
- Long-term earnings history shows consistency with occasional beats
- 5-year price underperformance (-11.2%) may reflect overvaluation correction
Watchpoints
- Only 1 of last 4 quarters beat estimates; average surprise negative
- Mixed historical earnings surprises with recent misses
Health
40/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Profit margins and ROE (10.46%) are strong for sector (avg ROE -13.76%)
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Current ratio (0.42) and quick ratio (0.31) dangerously low
- Debt/equity (1.41) high, though not extreme for capital-intensive utility
Dividend
70/100
Ref Yield, Payout
Positives
- Dividend yield (2.52%) attractive vs sector and broader market
- Payout ratio (55.98%) leaves room for future increases
- Dividend strength score of 50/100 indicates moderate reliability
Watchpoints
- No 5-year average yield provided; long-term trend unclear
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$129.71
Analyst Target
$141.54
Upside/Downside
+9.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AWK and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AWK
American Water Works Company, Inc.
Primary
|
-11.2% | -10.3% | +9.1% | -6.4% | -1.2% | -2.7% |
|
ES
Eversource Energy
Peer
|
-5.0% | -1.3% | +22.7% | -6.1% | +2.4% | -0.9% |
|
EIX
Edison International
Peer
|
+48.1% | +8.2% | +25.4% | +22.3% | -2.1% | -2.7% |
|
ATO
Atmos Energy Corporation
Peer
|
+107.3% | +55.1% | +21.1% | +6.6% | -1.8% | -3.0% |
|
CMS
CMS Energy Corporation
Peer
|
+39.0% | +34.0% | +6.0% | +3.6% | +1.1% | -1.9% |
AWK
American Water Works Company, Inc.
Primary
5Y
-11.2%
3Y
-10.3%
1Y
+9.1%
6M
-6.4%
1M
-1.2%
1W
-2.7%
ES
Eversource Energy
Peer
5Y
-5.0%
3Y
-1.3%
1Y
+22.7%
6M
-6.1%
1M
+2.4%
1W
-0.9%
EIX
Edison International
Peer
5Y
+48.1%
3Y
+8.2%
1Y
+25.4%
6M
+22.3%
1M
-2.1%
1W
-2.7%
ATO
Atmos Energy Corporation
Peer
5Y
+107.3%
3Y
+55.1%
1Y
+21.1%
6M
+6.6%
1M
-1.8%
1W
-3.0%
CMS
CMS Energy Corporation
Peer
5Y
+39.0%
3Y
+34.0%
1Y
+6.0%
6M
+3.6%
1M
+1.1%
1W
-1.9%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
23.08
Forward P/E
21.26
PEG Ratio
N/A
P/B Ratio
2.32
P/S Ratio
4.99
EV/Revenue
7.98
EV/EBITDA
14.65
Market Cap
$25.32B
Profitability
Profit margins and return metrics
Profit Margin
21.93%
Operating Margin
42.59%
Gross Margin
60.75%
ROE
10.46%
ROA
3.55%
Growth
Revenue and earnings growth rates
Revenue Growth
+9.7%
Earnings Growth
+8.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+8.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.41
Moderate
Current Ratio
0.42
Weak
Quick Ratio
0.31
Poor
Cash/Share
$1.26
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-18
$N/A
2025-10-29
$1.94
+3.0% surprise
2025-07-30
$1.48
-3.1% surprise
2025-04-30
$1.05
-0.9% surprise
Utilities Sector Comparison
Comparing AWK against 65 companies in the Utilities sector
(3 bullish, 39 neutral, 23 bearish)
P/E Ratio
23.08
This Stock
vs
26.3
Sector Avg
-12.2%
(Discount)
Return on Equity (ROE)
10.46%
This Stock
vs
-0.5%
Sector Avg
-2181.4%
(Below Avg)
Profit Margin
21.93%
This Stock
vs
6.99%
Sector Avg
+213.9%
(Superior)
Debt to Equity
1.41
This Stock
vs
1.59
Sector Avg
-11.4%
(Lower)
Revenue Growth
9.7%
This Stock
vs
18.93%
Sector Avg
-48.8%
(Slower)
Current Ratio
0.42
This Stock
vs
1.12
Sector Avg
-62.6%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AWK
American Water Works Company, Inc.
|
NEUTRAL | $25.32B | 23.08 | 10.5% | 21.9% | $129.71 | |
|
ES
Eversource Energy
|
NEUTRAL | $25.8B | 15.05 | 10.8% | 12.5% | $68.64 | Compare |
|
EIX
Edison International
|
NEUTRAL | $26.5B | 5.96 | 24.1% | 23.1% | $68.86 | Compare |
|
ATO
Atmos Energy Corporation
|
NEUTRAL | $26.74B | 22.16 | 9.3% | 25.5% | $165.34 | Compare |
|
CMS
CMS Energy Corporation
|
NEUTRAL | $23.49B | 21.67 | 10.9% | 12.5% | $76.27 | Compare |
AWK
American Water...
NEUTRAL
Mkt Cap
$25.3B
P/E
23.1
ROE
10.5%
Price
$129.71
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-01 | SUTTON LORI | Officer | Stock Award | 90 | - |
| 2025-08-26 | GROW LISA A | Director | Stock Award | 868 | - |
SUTTON LORI
Officer
2025-10-01
90 shares
GROW LISA A
Director
2025-08-26
868 shares
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
11 analysts
Wells Fargo
2026-01-20
Equal-Weight
Equal-Weight
B of A Securities
2026-01-12
Underperform
Neutral
Barclays
2025-12-17
Underweight
Underweight
Jefferies
2025-11-05
Underperform
Hold
Wells Fargo
2025-10-28
Equal-Weight
Barclays
2025-10-21
Underweight
Underweight
Argus Research
2025-08-14
Buy
Buy
UBS
2025-08-12
Neutral
Neutral
Mizuho
2025-08-01
Neutral
Neutral
Wells Fargo
2025-08-01
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning AWK from our newsroom.
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