Stock Analysis
American Water Works Company, IncAWK
P/E 23.77×· 5Y range 17.40–45.05×· 34th percentile of history
Sector: Utilities · Industry: Water Supply
AnalystsHold19 analystsP/E 23.8× sits at the 34th percentile of its 5.089664613278576-year history.
Cash covers 1% of debt · Q2 2026.
PMP Verdict
Weak fundamentals
Strengths
- Profitability67
Risks
- Financial Health18
- Growth24
Weak fundamentals — valuation is the only support.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
What's happening with AWK
Profile
financial health, growth, moat and valuation lag behind.
How is each axis scored?
- Valuation44/100 · Weak
- P/E vs own history (34th pct)20/25
- FCF yield (-3.8%)0/25
- P/S (5.1x)12/25
- EV/EBIT (21.9x)12/25
- Growth24/100 · Weak
- Revenue CAGR (6.9%)12/25
- Net income CAGR (-3.2%)0/25
- EPS CAGR 5Y (-4.8%)0/25
- Fwd implied growth (14.5%)12/25
- Profitability67/100 · Moderate
- ROIC (5.6%)5/25
- ROE (9.7%)12/25
- Net margin (21.3%)25/25
- Operating margin (36.9%)25/25
- Financial Health18/100 · Weak
- Altman Z (0.86)3/25
- Current ratio (0.52)0/25
- Interest coverage (3.7x)10/25
- Net cash / debt (D/A 44%)5/25
- Quality59/100 · Moderate
- Piotroski F (7/9)22/25
- Beneish M (-2.05)12/25
- FCF conversion (-91%)0/25
- Margin stability (σ 3.0%)25/25
- Moat25/100 · Weak
- ROIC >12% years (0/10 yrs)0/25
- Median gross margin (n/a)0/25
- FCF-positive years (1/10 yrs)0/25
- Worst-year net margin (worst 12.7%)25/25
Risk Flags
- ⚠Altman Z 0.9 — distress-zone balance sheet
- ⚠Negative FCF margin (-0.2%) — burning cash
About American Water Works Company, Inc
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. Show more
It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
Headquarters: CAMDEN, NJ · Employees: 7,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
44D+P/E (TTM)23.8xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 17.4x–45.0x · 34th pct
P/FCF3821.0xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
FCF Yield-3.8%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -5.1%–-0.7% · 16th pct · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
P/S (TTM)5.08xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 4.5x–8.8x · 13th pct
EV/EBIT21.9xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 19.8x–36.5x · 13th pct
EV/Sales8.1xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E20.8xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.30xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio5.76D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.46%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio58.3%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
CapEx exceeds OCF: CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
Profitability
67BROIC5.6%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE9.7%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA3.2%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin21.3%A
Grade A: HighNet Income / Revenue
Operating Margin36.9%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin—
Gross Profit / Revenue
FCF Margin-19.5%D
Grade D: LowFCF / Revenue · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
True FCF Margin-19.5%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
Growth
24ERevenue CAGR6.9%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-3.2%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-4.8%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth14.5%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+9.2%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
18EAltman Z-Score0.86D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.52xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.49xD
Grade D: Low(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage3.7xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
Net Debt/EBIT8.1xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity1.38xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.01xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
59CPiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.05C
Grade C: Gray zoneEarnings manipulation risk. < -2.22 Safe
FCF Conversion-91.3%D
Grade D: PoorFCF / Net Income · CapEx exceeds operating cash flow (144% of OCF) — reported FCF understates normalized earning power in this investment phase
Margin Stability3.0%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue63.7%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.15xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 records| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Nathoo Raffiq Filed | Nathoo Raffiq | Grant / award | +1.4K | |
Marberry Michael Filed | Marberry Michael | Grant / award | +1.4K | |
Havanec Laurie P. Filed | Havanec Laurie P. | Grant / award | +1.4K | |
KAMPLING PATRICIA L Filed | KAMPLING PATRICIA L | Grant / award | +1.4K | |
MCGUIGAN STUART M Filed | MCGUIGAN STUART M | Grant / award | +1.4K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Grow Lisa A Filed | Grow Lisa A | Grant / award | +1.4K | |
Edwards Jeffrey N Filed | Edwards Jeffrey N | Grant / award | +1.4K | |
Kurz Karl F Filed | Kurz Karl F | Grant / award | +2.2K |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
25EROIC >12% Years0/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)—
Median annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years1/10 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor12.7%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$5.68
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$0.96
Cash & short-term investments per share (Finnhub)
Book Value / Share$58.70
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$16.07B
Total debt obligations (short + long term)
Cash & Equiv.$191.00M
Cash and short-term investments
Net Debt$15.88B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$11.66B
Shareholders' equity (book value)
Asset / Liability1.47xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$26.82B
Current Market Capitalization
Beta0.57B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: American Water Works Company, Inc (AWK)
AWK is up 1.43% at the last close. American Water Works Company, Inc meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 0.86 is below the 1.81 distress threshold — an elevated financial-risk flag.
- Free-cash-flow margin is negative (-19%) — the business currently burns cash.
- Company has negative FCF, making debt repayment from operations difficult.
- The stock currently yields 2.5% in dividends.
See how AWK ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AWK moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 2 | Regular | 129.85 | +1.55% | 2.80 |
| Oct 2 | After-hours | 130.25 | +1.87% | 3.23 |
Frequently Asked Questions about AWK
What is the current American Water Works Company, Inc (AWK) stock price?
AWK is trading at $134.94 at the last market close, up 1.43% on the session. PreMarketPrice tracks AWK pre-market, intraday and after-hours prices.
Is AWK stock a buy right now?
PreMarketPrice's quantitative model rates American Water Works Company, Inc's financial health at 18/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AWK stock overvalued?
American Water Works Company, Inc trades at a trailing P/E of 23.8 and our valuation score rates it 44/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does American Water Works Company, Inc report earnings?
No confirmed earnings date is currently scheduled for AWK. The Earnings section lists recent reports and updates as dates are announced.
What sector does American Water Works Company, Inc operate in?
American Water Works Company, Inc operates in the Utilities sector, within the Water Supply industry. The Related Stocks section lists sector peers for comparison.
What does American Water Works Company, Inc do?
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states.
About American Water Works Company, Inc (AWK) Stock
American Water Works Company, Inc (AWK) is a US-listed stock operating in the Utilities sector, specifically the Water Supply industry. As of the latest update, American Water Works Company, Inc is trading at $134.94, up 1.43% on the day with a market capitalization of $26.8 billion. The financial health score for AWK is 18/100, which indicates poor financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AWK stock.
AWK Stock Analysis & Key Metrics
On PreMarketPrice, you can track American Water Works Company, Inc (AWK) across multiple dimensions:
- Pre-market price & movement: Real-time AWK stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AWK with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for American Water Works Company, Inc across multiple reporting periods.
- Financial health score: A composite score of 18/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AWK.
- Sector peers: Compare AWK against 5 other utilities stocks on key financial metrics.
Is AWK a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate American Water Works Company, Inc (AWK) as an investment. The financial health score of 18/100 suggests poor financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.American Water Works Company, Inc (AWK) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.