July 10, 2025 a 07:43 am
AWK: Fundamental Ratio Analysis - American Water Works Company, Inc.
American Water Works Company, Inc. operates a vast network of water and wastewater services across the United States. With a strong market presence in 24 states and serving approximately 14 million people, AWK stands out in the regulated water industry. Despite challenges in debt management, the company shows promising growth potential with consistent ROE and ROA scores.
Fundamental Rating
American Water Works holds a solid fundamental rating with consistent high scores in cash flow and equity returns. However, its debt levels and valuation ratios maintain room for improvement.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 4 | |
| Return on Assets | 4 | |
| Debt to Equity | 2 | |
| Price to Earnings | 2 | |
| Price to Book | 2 |
Historical Rating
The historical data indicates steady performance in equity returns and cash flow stability, with recent scores showing a slight improvement over time.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-07-09 | 3 | 4 | 4 | 4 | 2 | 2 | 2 |
| Previous | 0 | 4 | 4 | 4 | 2 | 2 | 2 |
Analyst Price Targets
The market perception of AWK's pricing shows a positive outlook with a median target indicating growth potential over the current consensus price.
| High | Low | Median | Consensus |
|---|---|---|---|
| 181 | 124 | 155 | 150.11 |
Analyst Sentiment
The analyst sentiment is leaning towards a Buy, indicating confidence in AWK's potential with predominant Buy and Hold recommendations.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 13 | |
| Hold | 13 | |
| Sell | 2 | |
| Strong Sell | 0 |
Conclusion
American Water Works presents a stable investment with a strong market presence and reliable returns, especially in cash flow and equity metrics. However, its high debt-to-equity ratio requires careful monitoring. The overall positive analyst sentiment suggests a continual opportunity for growth within the regulated water sector. As AWK expands its services, its fundamental strengths make it a noteworthy consideration for investors seeking stability in utility stocks.