A Business at a Glance
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American Water Works Company, Inc.
AWK
$26.3B
Mkt Cap
$134.66
+0.19%
American Water Works Company, Inc. (AWK) has a current P/E ratio of 23.7, compared to its historical median P/E of 25.3. The stock is currently considered Fair based on its historical valuation range.
American Water Works Company, Inc. (AWK) has a 5-year average return on invested capital (ROIC) of 5.7%. This is below average and may indicate limited pricing power.
American Water Works Company, Inc. (AWK) has a market capitalization of $27.0B. It is classified as a large-cap stock.
Yes, American Water Works Company, Inc. (AWK) pays a dividend with a trailing twelve-month yield of 2.39%.
Based on historical P/E analysis, American Water Works Company, Inc. (AWK) appears fair. The current P/E of 23.7 is 6% below its historical median of 25.3. The estimated fair value CAGR (P/E method) is 9.1%.
American Water Works Company, Inc. (AWK) operates in the Water Supply industry, within the Utilities sector.
American Water is the largest publicly-traded water and wastewater utility company in the United States, serving approximately 14 million people across 24 states through its regulated utilities segment, which accounts for 92% of operating revenues. The company operates 3.6 million active water and wastewater customer connections across 14 states, with a customer base composed primarily of residential customers (54% of water revenue) supplemented by commercial, industrial, fire service, and public authority customers, generating revenues through metered consumption billing on a monthly basis. The company owns and operates the physical infrastructure—including storage, treatment, and distribution systems for water and collection, treatment, and recycling systems for wastewater—though it does not own the water itself, which is allocated through contracts, permits, and rights granted by federal and state agencies; water supply is sourced from surface water (70% of supply), groundwater (23%), and purchased water (7%), with significant geographic diversity mitigating weather-related supply risks. The regulated utility business model is capital-intensive, with the company planning to invest $46–48 billion over the next decade in infrastructure improvements, pipe replacement, and acquisitions to transition from a 250-year replacement cycle in 2009 to better than a 100-year cycle within the next decade, while customer growth is driven by acquisitions, population growth in service areas, and bulk water sales to other utilities. The company also operates a smaller non-regulated segment serving U.S. military installations and municipalities, and is pursuing a merger with Essential Utilities announced in October 2025, expected to close by the end of the first quarter of 2027.
【Regulatory-driven earnings growth】 Management expects to deliver 8% adjusted earnings per share growth in 2026 compared to 2025, with the majority of growth occurring in the second half of the year as authorized rate increases take effect in key states including Pennsylvania, New Jersey, Virginia, and California. The company continues to pursue rate cases across multiple jurisdictions to recover substantial system investments, with new infrastructure recovery mechanisms in Iowa and Indiana providing more timely cost recovery outside general rate cases, while maintaining residential water bills below 1% of median household income to support customer affordability. Capital investments are expected to grow the regulated rate base at a long-term rate of 8–9% annually, supported by a robust acquisition pipeline with over 100,000 customer connections under agreement, and the company affirms its long-term targets for 7–9% annual earnings and dividend growth through 2030 and beyond. The proposed Essential Utilities merger is expected to close by the end of the first quarter of 2027, creating a leading combined water and wastewater utility company, while the company maintains investment-grade credit ratings with debt-to-capital ratios expected to remain below 60%.
| Metric | Target | Period |
|---|---|---|
| Adjusted EPS | $6.02–$6.12 | FY2026 |
| Dividend growth | 7%–9% per year | 2026 and beyond |
| Rate base growth | 8%–9% long-term | Long-term |
Adjusted EPS (FY2026): “we affirmed our 2026 adjusted EPS guidance range of $6.02 - $6.12 per share. This represents our expectation of 8% EPS growth in 2026 compared to 2025”
Dividend growth (2026 and beyond): “we continue to expect to grow our dividend at 7%-9% per year, in line with our compelling 7%-9% EPS growth target”
Rate base growth (Long-term): “We continue to expect that these capital investments in infrastructure and acquisitions will grow regulated rate base at a long-term rate of 8%-9%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.2B | 5.1B | 4.7B | 4.2B | 3.8B | 3.9B |
| Net Income | 1.1B | 1.1B | 1.1B | 944M | 820M | 1.3B |
| EPS | $5.49 | $5.69 | $5.39 | $4.90 | $4.51 | $6.95 |
| Free Cash Flow | -1.2B | -1.1B | -811M | -701M | -1.2B | -323M |
| ROIC | 5.6% | 5.8% | 5.8% | 5.7% | 5.4% | 6.0% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 1.42 | 1.47 | 1.37 | 1.27 | 1.62 | 1.52 |
| Dividends/Share | $3.22 | $3.31 | $3.06 | $2.83 | $2.62 | $2.41 |
| Operating Income | 1.9B | 1.9B | 1.7B | 1.5B | 1.3B | 1.2B |
| Operating Margin | 36.6% | 36.7% | 36.9% | 35.7% | 33.8% | 30.6% |
| ROE | 10.0% | 10.5% | 10.4% | 10.8% | 10.9% | 18.4% |
| Shares Outstanding | 201M | 195M | 195M | 193M | 182M | 182M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.0B | 3.2B | 3.3B | 3.4B | 3.4B | 3.6B | 3.7B | 3.9B | 3.8B | 4.2B | 4.7B | 5.1B | 5.2B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 1.0B | 1.1B | 1.1B | 1.3B | 1.1B | 1.2B | 1.2B | 1.2B | 1.3B | 1.5B | 1.7B | 1.9B | 1.9B |
| Op. Margin | 33.3% | 34.0% | 32.7% | 37.3% | 32.3% | 33.8% | 33.3% | 30.6% | 33.8% | 35.7% | 36.9% | 36.7% | 36.6% |
| Net Income | 423M | 476M | 468M | 426M | 567M | 621M | 709M | 1.3B | 820M | 944M | 1.1B | 1.1B | 1.1B |
| Net Margin | 14.0% | 15.1% | 14.2% | 12.7% | 16.6% | 17.3% | 18.9% | 32.3% | 21.8% | 22.4% | 22.6% | 21.7% | 21.2% |
| Non-Recurring | 2.0M | 3.0M | 10M | 16M | 73M | -34M | 0 | 747M | 19M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 5.7% | 7.0% | 6.3% | 7.2% | 7.3% | 8.0% | 8.1% | 6.0% | 5.4% | 5.7% | 5.8% | 5.8% | 5.6% |
| ROE | 8.8% | 9.4% | 9.0% | 7.9% | 10.1% | 10.4% | 11.3% | 18.4% | 10.9% | 10.8% | 10.4% | 10.5% | 10.0% |
| ROA | 2.7% | 2.8% | 2.5% | 2.2% | 2.8% | 2.8% | 3.0% | 5.0% | 3.0% | 3.3% | 3.3% | 3.3% | 3.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.1B | 1.2B | 1.3B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.1B | 1.9B | 2.0B | 2.1B | 2.0B |
| Free Cash Flow | 141M | 19M | -22M | 15M | -200M | -271M | -396M | -323M | -1.2B | -701M | -811M | -1.1B | -1.2B |
| Owner Earnings | 660M | 700M | 793M | 942M | 833M | 790M | 805M | 787M | 428M | -545M | 1.2B | 1.1B | 1.1B |
| CapEx | 956M | 1.2B | 1.3B | 1.4B | 1.6B | 1.7B | 1.8B | 1.8B | 2.3B | 2.6B | 2.9B | 3.1B | 3.2B |
| Maint. CapEx | 424M | 440M | 470M | 492M | 545M | 582M | 604M | 636M | 649M | 704M | 788M | 894M | 915M |
| Growth CapEx | 532M | 720M | 841M | 942M | 1.0B | 1.1B | 1.2B | 1.1B | 1.6B | 1.9B | 2.1B | 2.2B | 2.3B |
| D&A | 424M | 440M | 470M | 492M | 545M | 582M | 604M | 636M | 649M | 704M | 788M | 894M | 915M |
| CapEx/OCF | 87.1% | 98.4% | 101.7% | 99.0% | 114.4% | 119.6% | 127.8% | 122.4% | 207.3% | 137.4% | 139.7% | 151.8% | 159.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 216M | 239M | 261M | 289M | 319M | 353M | 389M | 428M | 467M | 532M | 585M | 633M | 646M |
| Dividend Yield | 3.2% | 3.0% | 2.4% | 2.4% | 2.4% | 2.0% | 1.7% | 1.6% | 1.8% | 2.1% | 2.4% | 2.4% | 2.4% |
| Share Buybacks | 0 | 126M | 65M | 54M | 45M | 36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 1.4% | 0.6% | 0.4% | 0.3% | 0.2% | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 13M | 39M | 26M | 15M | 8.0M | 11M | 17M | 18M | 31M | 1.7B | 44M | 38M | 33M |
| Debt Repayment | 240M | 130M | 144M | 896M | 526M | 495M | 342M | 372M | 15M | 282M | 475M | 664M | 664M |
| Balance Sheet | |||||||||||||
| Net Debt | 5.9B | 4.3B | 5.2B | 5.1B | 5.3B | 5.4B | 5.8B | 10.9B | 12.4B | 12.1B | 14.0B | 15.8B | 15.5B |
| Cash & Equiv. | 23M | 45M | 75M | 55M | 130M | 60M | 547M | 116M | 85M | 330M | 96M | 98M | 137M |
| Long-Term Debt | 5.4B | 3.7B | 3.9B | 4.0B | 4.4B | 4.5B | 4.7B | 10.3B | 10.9B | 11.7B | 12.5B | 12.8B | 12.8B |
| Debt/Equity | 1.21 | 0.86 | 1.02 | 0.97 | 0.92 | 0.89 | 0.99 | 1.52 | 1.62 | 1.27 | 1.37 | 1.47 | 1.42 |
| Interest Coverage | 3.4 | 3.5 | 3.3 | 3.7 | 91.8 | 80.9 | 83.2 | 108.7 | 2.9 | 3.3 | 3.3 | 3.1 | 3.0 |
| Equity | 4.9B | 5.0B | 5.2B | 5.4B | 5.9B | 6.1B | 6.5B | 7.3B | 7.7B | 9.8B | 10.3B | 10.8B | 11.0B |
| Total Assets | 16.0B | 17.2B | 18.5B | 19.5B | 21.2B | 22.7B | 24.8B | 26.1B | 27.8B | 30.3B | 32.8B | 35.4B | 35.3B |
| Total Liabilities | 3.0B | 12.2B | 13.3B | 14.1B | 2.7B | 3.0B | 3.2B | 3.3B | 3.2B | 3.6B | 3.9B | 24.6B | -164M |
| Intangibles | N/A | N/A | N/A | N/A | 84M | 67M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -1.3B | -1.1B | -873M | -723M | -464M | -207M | 102M | 925M | 1.3B | 1.7B | 2.1B | 2.6B | 2.8B |
| Working Capital | -666M | -876M | -1.6B | -1.6B | -1.3B | -760M | -975M | -587M | -1.6B | -762M | -1.9B | -2.6B | -2.6B |
| Current Assets | 575M | 657M | 784M | 720M | 781M | 1.3B | 1.9B | 1.6B | 1.3B | 1.4B | 1.2B | 2.2B | 1.5B |
| Current Liabilities | 1.2B | 1.5B | 2.4B | 2.3B | 2.1B | 2.0B | 2.9B | 2.1B | 2.8B | 2.2B | 3.1B | 4.7B | 4.1B |
| Per Share Data | |||||||||||||
| EPS | 2.35 | 2.64 | 2.62 | 2.38 | 3.15 | 3.43 | 3.91 | 6.95 | 4.51 | 4.90 | 5.39 | 5.69 | 5.49 |
| Owner EPS | 3.67 | 3.88 | 4.44 | 5.26 | 4.63 | 4.36 | 4.44 | 4.33 | 2.35 | -2.83 | 6.22 | 5.77 | 5.40 |
| Book Value | 27.31 | 28.00 | 29.21 | 30.09 | 32.58 | 33.81 | 35.59 | 40.16 | 42.31 | 50.85 | 52.99 | 55.50 | 54.97 |
| Cash Flow/Share | 6.09 | 6.54 | 7.22 | 8.10 | 7.70 | 7.64 | 7.86 | 7.93 | 6.09 | 9.73 | 10.49 | 10.55 | 10.05 |
| Dividends/Share | 1.24 | 1.36 | 1.50 | 1.66 | 1.82 | 2.00 | 2.20 | 2.41 | 2.62 | 2.83 | 3.06 | 3.31 | 3.22 |
| Shares Out. | 180.0M | 180.3M | 178.6M | 179.0M | 180.0M | 181.0M | 181.3M | 181.7M | 181.8M | 192.7M | 195.0M | 195.3M | 200.8M |
| Valuation | |||||||||||||
| P/E Ratio | 18.4 | 18.8 | 23.0 | 32.8 | 24.9 | 31.8 | 34.5 | 24.5 | 31.6 | 25.7 | 22.5 | 22.8 | 24.5 |
| P/FCF | 55.1 | 471.1 | N/A | 932.3 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | 13.6 | 12.3 | 14.7 | 15.2 | 17.5 | 21.3 | 27.5 | 34.8 | 29.9 | 23.9 | 21.8 | 21.8 | 22.4 |
| Price/Book | 1.6 | 1.8 | 2.1 | 2.6 | 2.4 | 3.2 | 3.8 | 4.2 | 3.4 | 2.5 | 2.3 | 2.3 | 2.4 |
| Price/Sales | 2.3 | 2.5 | 3.2 | 3.6 | 3.9 | 5.0 | 5.9 | 6.9 | 6.7 | 6.0 | 5.3 | 5.1 | 5.2 |
| FCF Yield | 1.8% | 0.2% | -0.2% | 0.1% | -1.4% | -1.4% | -1.6% | -1.0% | -4.6% | -2.9% | -3.4% | -4.2% | -4.5% |
| Market Cap | 7.8B | 9.0B | 10.7B | 14.0B | 14.1B | 19.7B | 24.4B | 30.9B | 25.9B | 24.3B | 23.7B | 25.3B | 27.0B |
| Avg. Price | 37.65 | 43.85 | 59.98 | 67.98 | 74.11 | 98.95 | 122.64 | 148.71 | 139.98 | 131.74 | 126.36 | 134.96 | 134.66 |
| Year-End Price | 43.17 | 49.64 | 60.16 | 78.13 | 78.40 | 109.02 | 134.76 | 170.03 | 142.30 | 126.04 | 121.46 | 129.67 | 134.66 |
American Water Works Company, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
American Water Works Company, Inc. trades at 23.7x trailing earnings, compared to its 15-year median P/E of 25.3x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 5.7%. Total shareholder yield (dividends) is 2.4%. At current prices, the estimated annualized return to fair value is +9.1%.
American Water Works Company, Inc. (AWK) reported annual revenue of $5.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
American Water Works Company, Inc. (AWK) has a net profit margin of 21.7%. This is a strong margin indicating high profitability.
American Water Works Company, Inc. (AWK) generated $-1.1 billion in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
American Water Works Company, Inc. (AWK) has a debt-to-equity ratio of 1.47. This indicates moderate leverage.
American Water Works Company, Inc. (AWK) reported earnings per share (EPS) of $5.69 in its most recent fiscal year.
American Water Works Company, Inc. (AWK) has a return on equity (ROE) of 10.5%. This indicates moderate shareholder returns.
The Ledger Terminal provides 18 years of financial data for American Water Works Company, Inc. (AWK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
American Water Works Company, Inc. (AWK) has a book value per share of $55.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to deliver 8% adjusted earnings per share growth in 2026 compared to 2025, with the majority of growth occurring in the second half of the year as authorized rate increases take effect in key states including Pennsylvania, New Jersey, Virginia, and California. The company continues to pursue rate cases across multiple jurisdictions to recover substantial system investments, with new infrastructure recovery mechanisms in Iowa and Indiana providing more timely cost recovery outside general rate cases, while maintaining residential water bills below 1% of median household income to support customer affordability. Capital investments are expected to grow the regulated rate base at a long-term rate of 8–9% annually, supported by a robust acquisition pipeline with over 100,000 customer connections under agreement, and the company affirms its long-term targets for 7–9% annual earnings and dividend growth through 2030 and beyond. The proposed Essential Utilities merger is expected to close by the end of the first quarter of 2027, creating a leading combined water and wastewater utility company, while the company maintains investment-grade credit ratings with debt-to-capital ratios expected to remain below 60%.
Based on recent SEC filings and earnings calls, American Water Works Company, Inc. (AWK) has provided the following forward guidance: Adjusted EPS: $6.02–$6.12 (FY2026); Dividend growth: 7%–9% per year (2026 and beyond); Rate base growth: 8%–9% long-term (Long-term).