American Water (Germany) Buy Hold or Sell Recommendation
| AWC Stock | EUR 117.80 1.60 1.34% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding American Water Works is 'Strong Sell'. Macroaxis provides American Water buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AWC positions.
Check out American Water Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' constraints. 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 board of governors.
American |
Execute American Water Buy or Sell Advice
The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Water Works. Macroaxis does not own or have any residual interests in American Water Works or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Water's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
American Water Trading Alerts and Improvement Suggestions
| American Water Works generated a negative expected return over the last 90 days | |
| American Water Works has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| American Water Works has accumulated 10.93 B in total debt with debt to equity ratio (D/E) of 147.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. American Water Works has a current ratio of 0.36, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist American Water until it has trouble settling it off, either with new capital or with free cash flow. So, American Water's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like American Water Works sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for American to invest in growth at high rates of return. When we think about American Water's use of debt, we should always consider it together with cash and equity. | |
| Over 90.0% of American Water shares are held by institutions such as insurance companies |
American Water Returns Distribution Density
The distribution of American Water's historical returns is an attempt to chart the uncertainty of American Water's future price movements. The chart of the probability distribution of American Water daily returns describes the distribution of returns around its average expected value. We use American Water Works price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Water returns is essential to provide solid investment advice for American Water.
| Mean Return | -0.16 | Value At Risk | -3.34 | Potential Upside | 2.20 | Standard Deviation | 1.60 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Water historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
American Water Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Water or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Water's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.17 | |
β | Beta against Dow Jones | -0.2 | |
σ | Overall volatility | 1.60 | |
Ir | Information ratio | -0.12 |
American Water Volatility Alert
American Water Works exhibits very low volatility with skewness of 0.07 and kurtosis of 0.55. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Water's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Water's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.American Water Fundamentals Vs Peers
Comparing American Water's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Water's direct or indirect competition across all of the common fundamentals between American Water and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Water or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Water's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Water by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare American Water to competition |
| Fundamentals | American Water | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0313 | -0.14 |
| Profit Margin | 0.22 % | (1.27) % |
| Operating Margin | 0.36 % | (5.51) % |
| Shares Outstanding | 181.86 M | 571.82 M |
| Shares Owned By Insiders | 0.20 % | 10.09 % |
| Shares Owned By Institutions | 89.94 % | 39.21 % |
| Price To Earning | 30.00 X | 28.72 X |
| Revenue | 3.79 B | 9.43 B |
| Gross Profit | 2.2 B | 27.38 B |
| EBITDA | 2.09 B | 3.9 B |
| Net Income | 820 M | 570.98 M |
| Cash And Equivalents | 133 M | 2.7 B |
| Cash Per Share | 0.74 X | 5.01 X |
| Total Debt | 10.93 B | 5.32 B |
| Debt To Equity | 147.00 % | 48.70 % |
| Current Ratio | 0.37 X | 2.16 X |
| Book Value Per Share | 42.30 X | 1.93 K |
| Cash Flow From Operations | 1.11 B | 971.22 M |
| Earnings Per Share | 4.25 X | 3.12 X |
| Target Price | 177.93 | |
| Number Of Employees | 6.5 K | 18.84 K |
| Beta | 0.55 | -0.15 |
| Market Capitalization | 23.78 B | 19.03 B |
| Total Asset | 27.79 B | 29.47 B |
| Z Score | 1.2 | 8.72 |
| Annual Yield | 0.02 % | |
| Five Year Return | 2.04 % | |
| Net Asset | 27.79 B | |
| Last Dividend Paid | 2.57 |
American Water Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About American Water Buy or Sell Advice
When is the right time to buy or sell American Water Works? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having American Water in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Investor Favorites
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in American Stock
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 American Water Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.