American Water Works Stock Price To Earning
| AWK Stock | USD 136.94 1.37 0.99% |
American Water Works fundamentals help investors to digest information that contributes to American Water's financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American Water's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American Water stock.
American | Price To Earning |
American Water Works Company Price To Earning Analysis
American Water's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Current American Water Price To Earning | 38.22 X |
Most of American Water's fundamental indicators, such as Price To Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Water Works is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Price To Earning Driver Correlations
Understanding the fundamental principles of building solid financial models for American Water is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Price To Earning. Since American Water's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American Water's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American Water's interrelated accounts and indicators.
Click cells to compare fundamentals
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
| Competition |
American Retained Earnings
Retained Earnings |
|
Based on the latest financial disclosure, American Water Works has a Price To Earning of 38.22 times. This is 26.56% higher than that of the Water Utilities sector and significantly higher than that of the Utilities industry. The price to earning for all United States stocks is 33.08% lower than that of the firm.
American Price To Earning Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Water's direct or indirect competition against its Price To Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Water could also be used in its relative valuation, which is a method of valuing American Water by comparing valuation metrics of similar companies.American Water is currently under evaluation in price to earning category among its peers.
American Water ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Water's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Water's managers, analysts, and investors.Environmental | Governance | Social |
American Fundamentals
| Return On Equity | 0.097 | ||||
| Return On Asset | 0.0334 | ||||
| Profit Margin | 0.22 % | ||||
| Operating Margin | 0.42 % | ||||
| Current Valuation | 39.99 B | ||||
| Shares Outstanding | 194.89 M | ||||
| Shares Owned By Insiders | 0.12 % | ||||
| Shares Owned By Institutions | 94.09 % | ||||
| Number Of Shares Shorted | 4.04 M | ||||
| Price To Earning | 38.22 X | ||||
| Price To Book | 2.58 X | ||||
| Price To Sales | 5.97 X | ||||
| Revenue | 4.23 B | ||||
| Gross Profit | 2.2 B | ||||
| EBITDA | 2.36 B | ||||
| Net Income | 944 M | ||||
| Cash And Equivalents | 85 M | ||||
| Cash Per Share | 0.53 X | ||||
| Total Debt | 12.44 B | ||||
| Debt To Equity | 1.55 % | ||||
| Current Ratio | 0.59 X | ||||
| Book Value Per Share | 53.17 X | ||||
| Cash Flow From Operations | 1.87 B | ||||
| Short Ratio | 3.86 X | ||||
| Earnings Per Share | 5.04 X | ||||
| Price To Earnings To Growth | 3.06 X | ||||
| Target Price | 142.18 | ||||
| Number Of Employees | 6.5 K | ||||
| Beta | 0.7 | ||||
| Market Capitalization | 26.96 B | ||||
| Total Asset | 30.3 B | ||||
| Retained Earnings | 1.66 B | ||||
| Working Capital | (762 M) | ||||
| Current Asset | 657 M | ||||
| Current Liabilities | 1.53 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 1.63 % | ||||
| Net Asset | 30.3 B | ||||
| Last Dividend Paid | 2.95 |
About American Water Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Water Works's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Water using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Water Works based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out American Water Piotroski F Score and American Water Altman Z Score analysis. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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 5.04 | 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.