October 08, 2025 a 08:00 am
AWK: Fundamental Ratio Analysis - American Water Works Company, Inc.
American Water Works Company, Inc. is a leader in providing water and wastewater services across the United States. With a strong presence in 24 states, the company serves approximately 14 million people. This analysis will explore the company's fundamentals and market perception through various analytical snapshots.
Fundamental Rating
The fundamental analysis of American Water Works suggests a solid foundation with specific areas to monitor. This section breaks down key financial ratios and their respective scores.
| Category | Score | Score Bar |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 3 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 2 | |
| Price to Book | 2 |
Historical Rating
This section compares the current and previous fundamental scores to provide insights into the company's financial trajectory over time.
| Date | Overall | Discounted Cash Flow | Return on Equity | Return on Assets | Debt to Equity | Price to Earnings | Price to Book |
|---|---|---|---|---|---|---|---|
| 2025-10-07 | 3 | 4 | 3 | 5 | 1 | 2 | 2 |
| Previous | 0 | 4 | 3 | 5 | 1 | 2 | 2 |
Analyst Price Targets
Analysts have set varying price targets for AWK, reflecting differing opinions on the company's future market value.
| High | Low | Median | Consensual |
|---|---|---|---|
| $181 | $124 | $155 | $150.11 |
Analyst Sentiment
The overall analyst consensus suggests a generally positive outlook, yet individual recommendations vary.
| Recommendation | Number of Analysts | Score Bar |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 13 | |
| Hold | 12 | |
| Sell | 3 | |
| Strong Sell | 0 |
Conclusion
American Water Works Company, Inc. demonstrates a stable financial profile with steady performance across key metrics. While the company faces challenges in debt management, its expansive operations and essential service offerings make it a reliable choice in the utilities sector. Analyst sentiment is largely favorable, though some caution is noted. Investors should consider both growth potential and regulatory risks inherent in this industry. The stock may offer solid long-term value for those seeking exposure to regulated water utilities.