AWK
American Water Works
$124.92
▼ 0.1%Updated Today 7:15 PM ET
▼ Down 11.4% over the last 12 months
Market Cap
$24.42B
P/E
22x
Forward P/E (est.)
21.38x
ROE
10.1%
Revenue Growth
8.1%
EPS Growth
2.9%
Profit Margin
21.2%
FCF Yield
6.6%
Debt / Equity
1.46x
ROIC
7.0%
Interest Coverage
6.31x
Current Ratio
0.37x
Dividend Yield
2.8%
Implied Growth (rev. DCF)
—
Rating Score
55/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AWK's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AWK trades near $124.92, below its 50-day average ($127.71) and 200-day average ($132.24). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AWK's is $3.18 (~2.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AWK found buyers near $120.57 (support) and sellers near $128.74 (resistance); its 52-week range is $120.57–$147.87. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
American Water Works (AWK) is a large-cap company in the Water Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $24.42B.
In its latest reported year it generated about $5.12B in revenue and $1.11B in net profit.
Our model rates AWK Neutral (55/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
7.0%
Revenue moved from $3.91B in 2021 to $5.12B in 2025, a 7.0% compound annual growth rate. The most recent year grew a steady 8.1% year over year. Slower, mature growth is common for established businesses.
Gross Margin
—
Operating Margin
36.7%
Net Margin
21.7%
ROE
10.1%
American Water Works keeps about 21.2% of each sales dollar as net profit. Return on equity is 10.1% and return on invested capital about 7.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$9.66B
Net Debt
$9.52B
Net Debt / EBITDA
5.07x
Debt / Equity
1.46x
Leverage: debt-to-equity is 1.5x, and operating profit covers interest about 6.3x, with a current ratio of 0.4x. That is a moderate, manageable debt load for most businesses. It carries roughly $9.66B of total debt against $137.00M of cash.
Operating CF
$2.06B
Free Cash Flow
-$1.07B
FCF Margin
-20.8%
In the latest year American Water Works produced about $2.06B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 6.6% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
22x
P/S
4.85x
P/B
2.29x
EV / EBITDA
12.48x
AWK trades at 22.0x trailing earnings (about 21.4x on estimated forward earnings), 4.8x sales, and 2.3x book value. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How AWK stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
In the Utilities sector (31 S&P 500 companies), AWK ranks #13 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (22x P/E vs. 21.8x median) with a lower return on equity (10.1% vs. 10.4%) and slower revenue growth (8.1% vs. 9.0%).
P/E vs sector
22x
median 21.8x
ROE vs sector
10.1%
median 10.4%
Growth vs sector
8.1%
median 9.0%
Sector rank
#13
of 31 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$110.20 – $186.49
vs. $124.92 today · expected CAGR -2% – 8%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.53B | $5.97B | $6.45B | $6.97B | $7.52B |
| Net income | $1.22B | $1.31B | $1.42B | $1.53B | $1.66B |
| EPS | $6.23 | $6.73 | $7.27 | $7.85 | $8.48 |
| Share price (low) | $81.00 | $87.48 | $94.48 | $102.04 | $110.20 |
| Share price (high) | $137.08 | $148.04 | $159.89 | $172.68 | $186.49 |
| CAGR (low–high) | -35% / 10% | -16% / 9% | -9% / 9% | -5% / 8% | -2% / 8% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AWK:
- High net margins (21.2%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~6.6%) funds buybacks and dividends.
- Pays a 2.8% dividend on top of any price gains.
The case against AWK:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.5x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: American Water Works is a large-cap utilities business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 22.0x earnings, which our model scores Neutral (55/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.