American Water Financials

AWK Stock  USD 136.94  1.37  0.99%   
Based on the analysis of American Water's profitability, liquidity, and operating efficiency, American Water Works may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At this time, American Water's Net Debt is quite stable compared to the past year. Retained Earnings is expected to rise to about 1.7 B this year, although the value of Other Current Assets will most likely fall to about 218.6 M. Key indicators impacting American Water's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.230.223
Sufficiently Up
Slightly volatile
Return On Assets0.02410.0312
Significantly Down
Slightly volatile
Return On Equity0.08790.0964
Significantly Down
Slightly volatile
Debt Equity Ratio1.681.2628
Significantly Up
Slightly volatile
Operating Income1.6 B1.5 B
Sufficiently Up
Slightly volatile
Current Ratio0.610.6457
Notably Down
Very volatile
Investors should never underestimate American Water's ability to pay suppliers on time, ensure interest payments are not accumulating, and correctly time where and how to reinvest extra cash. Individual investors need to monitor American Water's cash flow, debt, and profitability to make informed and accurate decisions about investing in American Water Works.

Cash And Equivalents

167.83 Million

  
Understanding current and past American Water Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of American Water's financial statements are interrelated, with each one affecting the others. For example, an increase in American Water's assets may result in an increase in income on the income statement.

American Water Earnings Geography

American Water Stock Summary

American Water competes with California Water, SJW Group, Middlesex Water, and Global Water. American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under UtilitiesRegulated Water classification in the United States and is traded on New York Stock Exchange. It employs 6400 people.
Specialization
Utilities, Utilities - Regulated Water
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
ISINUS0304201033
CUSIP030420103
LocationNew Jersey; U.S.A
Business Address1 Water Street,
SectorWater Utilities
IndustryUtilities
BenchmarkDow Jones Industrial
Websitewww.amwater.com
Phone856 955 4001
CurrencyUSD - US Dollar

American Water Key Financial Ratios

American Water Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets22.7B24.8B26.1B27.8B30.3B31.8B
Other Current Liab302M1.0B1.1B1.1B1.1B1.2B
Net Debt9.5B10.5B10.9B12.4B12.1B12.7B
Retained Earnings(207M)102M925M1.3B1.7B1.7B
Cash60M547M116M85M330M346.5M
Net Receivables466M527M568M609M727.5M763.9M
Inventory44M47M57M98M112M117.6M
Other Current Assets118M774M776M359M219.5M218.6M
Total Liab16.6B18.3B18.8B20.1B20.5B21.5B
Total Current Assets1.3B1.9B1.6B1.3B1.4B1.5B
Short Term Debt814M1.6B641M1.5B654M552.7M
Accounts Payable203M189M235M254M294M151.4M
Other Liab5.8B6.0B6.2B6.3B7.2B3.6B
Other Assets1.5B1.5B2.2B1.4B1.6B1.3B
Long Term Debt8.6B9.3B10.3B10.9B11.7B6.9B
Treasury Stock(297M)(338M)(348M)(365M)(419.8M)(440.7M)
Good Will1.5B1.5B1.1B1.1B1.3B1.4B
Net Tangible Assets6.1B6.5B10.1B10.5B12.1B6.4B

American Water Key Income Statement Accounts

201920202021202220232024 (projected)
Interest Expense399M408M403M433M460M483M
Total Revenue3.6B3.8B3.9B3.8B4.2B2.2B
Gross Profit2.1B2.2B2.2B2.2B2.5B1.3B
Operating Income1.2B1.2B1.2B1.3B1.5B1.6B
Ebit1.2B1.3B1.3B1.4B1.7B1.7B
Ebitda1.8B1.9B1.9B2.0B2.4B2.5B
Cost Of Revenue1.5B1.6B1.8B1.6B1.7B1.1B
Income Before Tax833M924M1.6B1.0B1.2B1.3B
Net Income621M709M1.3B820M944M991.2M
Income Tax Expense212M215M377M188M252M164.3M
Tax Provision212M215M377M188M252M227.6M
Interest Income382M395M399M381M73M69.4M
Net Interest Income(382M)(395M)(399M)(381M)(387M)(406.4M)

American Water Key Cash Accounts

201920202021202220232024 (projected)
Change In Cash(68M)485M(440M)(19M)247M259.4M
Free Cash Flow(375M)(502M)(432M)(1.3B)(860M)(817M)
Depreciation582M604M636M649M704M739.2M
Other Non Cash Items(72M)(59M)(63M)(86M)(34M)(32.3M)
Dividends Paid353M389M428M467M532M558.6M
Capital Expenditures1.8B1.9B1.9B2.4B2.7B2.9B
Net Income621M709M1.3B820M944M991.2M
End Period Cash Flow91M576M136M117M364M382.2M
Change To Netincome211M168M163M64M73.6M69.9M
Change Receivables(25M)(97M)(74M)(114M)(102.6M)(97.5M)
Net Borrowings883M1.0B522M1.4B1.6B1.7B
Investments(1.9B)(2.1B)(1.5B)(2.1B)(2.8B)(2.7B)

American Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining American Water's current stock value. Our valuation model uses many indicators to compare American Water value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Water competition to find correlations between indicators driving American Water's intrinsic value. More Info.
American Water Works is rated third in return on equity category among its peers. It is rated second in return on asset category among its peers reporting about  0.34  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for American Water Works is roughly  2.90 . At this time, American Water's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Water by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

American Water Works Systematic Risk

American Water's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. American Water volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was ten with a total number of output elements of fifty-one. The Beta measures systematic risk based on how returns on American Water Works correlated with the market. If Beta is less than 0 American Water generally moves in the opposite direction as compared to the market. If American Water Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one American Water Works is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of American Water is generally in the same direction as the market. If Beta > 1 American Water moves generally in the same direction as, but more than the movement of the benchmark.

American Water Thematic Clasifications

American Water Works is part of Utilities investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. USA Equities from Utilities industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions
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This theme covers USA Equities from Utilities industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions. Get More Thematic Ideas
Today, most investors in American Water Stock are looking for potential investment opportunities by analyzing not only static indicators but also various American Water's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of American Water growth as a starting point in their analysis.

Price Earnings To Growth Ratio

3.36

At this time, American Water's Price Earnings To Growth Ratio is quite stable compared to the past year.

American Water November 29, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of American Water help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of American Water Works. We use our internally-developed statistical techniques to arrive at the intrinsic value of American Water Works based on widely used predictive technical indicators. In general, we focus on analyzing American Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build American Water's daily price indicators and compare them against related drivers.
When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.084
Dividend Share
2.945
Earnings Share
5.03
Revenue Per Share
23.124
Quarterly Revenue Growth
0.134
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.