American Water Net Income vs. Cash Per Share
| AWC Stock | EUR 117.80 1.60 1.34% |
For American Water profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Water to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Water Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Water's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Water Works over time as well as its relative position and ranking within its peers.
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American Water Works Cash Per Share vs. Net Income Fundamental Analysis
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. American Water Works is rated below average in net income category among its peers. It is rated fifth in cash per share category among its peers . The ratio of Net Income to Cash Per Share for American Water Works is about 1,108,108,108 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Water's earnings, one of the primary drivers of an investment's value.American Cash Per Share vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
American Water |
| = | 820 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
American Water |
| = | 0.74 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
American Cash Per Share Comparison
American Water is rated fourth in cash per share category among its peers.
American Water Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Water, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Water will eventually generate negative long term returns. The profitability progress is the general direction of American Water's change in net profit over the period of time. It can combine multiple indicators of American Water, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. The company was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under Utilities - Regulated Water classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7100 people.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Water. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Water position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Water's important profitability drivers and their relationship over time.
Use American Water in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Water position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Water will appreciate offsetting losses from the drop in the long position's value.American Water Pair Trading
American Water Works Pair Trading Analysis
The ability to find closely correlated positions to American Water could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Water when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Water - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Water Works to buy it.
The correlation of American Water is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Water Works moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Water can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Water position
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?
Run Sector ETFs Thematic Idea Now
Sector ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Sector ETFs theme has 439 constituents at this time.
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 Sector ETFs 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 Trending Equities. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project American Water's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Water Works at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Water's income statement, its balance sheet, and the statement of cash flows.