October 26, 2025 a 08:00 am
AWK: Fundamental Ratio Analysis - American Water Works Company, Inc.
American Water Works Company, Inc. demonstrates a solid performance within the regulated water industry, serving a broad customer base across multiple states. Given its substantial infrastructure and market presence, it's positioned well to handle consumer needs and regulatory requirements. However, investors should remain cognizant of industry dynamics and regulatory changes that could impact growth.
Fundamental Rating
The company's fundamentals reflect a balanced performance, with strong operational metrics and a moderate valuation compared to peers.
| Category | Score | |
|---|---|---|
| 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
Over time, American Water Works has maintained consistent scores, indicating stable performance in key areas.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-24 | 3 | 4 | 3 | 5 | 1 | 2 | 2 |
| N/A | 0 | 4 | 3 | 5 | 1 | 2 | 2 |
Analyst Price Targets
The stock has a promising price target with a consensus aligned at a stable point, providing investors with clear expectations.
| High | Low | Median | Consensus |
|---|---|---|---|
| $134 | $134 | $134 | $134 |
Analyst Sentiments
Analyst recommendations indicate a primarily bullish sentiment, with a substantial number of buy ratings.
| Recommendation | Number | |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 13 | |
| Hold | 12 | |
| Sell | 3 | |
| Strong Sell | 0 |
Conclusion
American Water Works Company, Inc. exhibits a stable financial foundation with solid performance in key metrics, despite some leverage concerns. Its broad customer base and established infrastructure underpin future growth potential. However, potential risks stem from fluctuating regulatory policies and economic conditions. Investors may find opportunities in its consistent dividend returns and strategic expansions. Nevertheless, maintaining a vigilant eye on industry trends remains crucial.