Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Regulated Water

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. The company also operates approximately 80 surface water treatment plants; 520 groundwater treatment plants; 170 wastewater treatment plants; 55,000 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,800 water and wastewater pumping stations; 1,100 treated water storage facilities; and 75 dams. In addition, it offers water and wastewater services to 14 states serving approximately 3.6 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. The company was founded in 1886 and is headquartered in Camden, New Jersey.

Revenue projections:

Revenue projections for AWK
Revenue projections for AWK

Revenues for AWK are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.

Financial Ratios:

currentRatio 0.370000
forwardPE 18.901323
debtToEquity 142.330000
earningsGrowth -0.048000
revenueGrowth 0.057000
grossMargins 0.608260
operatingMargins 0.332230
trailingEps 5.640000
forwardEps 6.575730

With a current ratio of 0.37, AWK may face challenges covering its short-term liabilities using available cash and assets. This points to potential liquidity concerns, as the company might need to seek alternative financing to meet its near-term debt obligations.
AWK's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
AWK's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
AWK's low earnings and revenue growth suggest that the company's profits may shrink. This trend could indicate underlying financial struggles and pose challenges for AWK's future profitability.
AWK's positive gross and operating margins indicate the company's ability to operate profitably. These margins reflect strong financial management, with efficient cost control contributing to sustained profitability and a solid financial outlook.
AWK's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that AWK is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for AWK
Price projections for AWK

Over time, American Water Works Company, Inc.'s price projections have consistently been revised lower. This downward shift suggests analysts are becoming more cautious about the company's future, possibly due to emerging risks or challenges.

Insider Transactions:

Insider Transactions for AWK
Insider Transactions for AWK


American Water Works Company, Inc. experienced 1 sell transactions with market price of 142.97000122070312 per share.There were no sell transactions during the period under consideration.The recent buying activity at current AWK price levels exceeds selling, suggesting a potential positive outlook. Investors may see this trend as an indicator that the stock is likely to perform well, reflecting growing confidence.

Recommendation changes over time:

Recommendations trend for AWK
Recommendations trend for AWK


The analysts' mixed ratings for American Water Works Company, Inc. indicate no clear guidance on whether to buy or sell. Investors may need to explore other data points or wait for more concrete market signals before taking any decisive action regarding American Water Works Company, Inc..