American Water Works Co Inc (AWK)
OvervaluedFundamental
58
Price
$129.47
Market Cap
$25.62B
Part 1 · What the company is worth
Overview
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. The company also operates approximately 80 surface water treatment plants; 520 groundwater treatment plants; 170 wastewater treatment plants; 55,000 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,800 water and wastewater pumping stations; 1,100 treated water storage facilities; and 75 dams. In addition, it offers water and wastewater services to 14 states serving approximately 3.6 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. The company was founded in 1886 and is headquartered in Camden, New Jersey.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
The second-largest investor-owned water and wastewater utility in the United States, bidding against American Water for the same municipal systems and acquisitions across overlapping states such as Pennsylvania, New Jersey, Ohio and Texas, although the two agreed an all-stock merger in October 2025 that has not yet closed.
Third-largest publicly traded investor-owned water utility in the country, serving roughly two million people in California, Hawaii, New Mexico and Washington and competing with American Water for regulated water customers and for municipal systems put up for sale in the West.
Through Golden State Water it serves regulated water customers in California, and through American States Utility Services it bids for the same 50-year US Department of Defense privatisation contracts on military bases that American Water's Military Services Group depends on.
A multi-state regulated water utility serving California, Texas, Connecticut and Maine, competing for the same regulated household and business water customers and for the same small municipal systems coming to market.
Operates regulated water and wastewater systems in New Jersey and Delaware, the same territory where New Jersey American Water is American Water's single largest state business, and also sells contract operations to municipalities there.
Its North American arm, enlarged by the acquisition of Suez's international business, runs regulated water utilities and municipal operation-and-maintenance contracts in the United States, chasing the same towns and industrial customers that American Water targets.
Balance Sheet & Liquidity
Revenue
$5.27B
Trailing 12 months (through 6/30/2026)
Net Income
$1.13B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-1.07B
Total Equity
$10.84B
Total Liabilities
$24.61B
Current Ratio
0.52
Interest Coverage
3.00
Debt/EBITDA
5.79
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$94.39
Current Price
$129.47
Margin of Safety
-37.2%
Fair Value Range
$61.35 - $127.42
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
22.44
ROE
10.3%
P/B Ratio
2.21
P/FCF
-
Gross Margin
-
ROIC
4.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.7%
WACC
6.1%
ROIC − WACC
-1.5 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (14)
- EPS shows upward trend
- Price CAGR 6.65%
- P/B Ratio 2.21
- Debt/Equity ratio
- Operating Margin 37.1%
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 10.2%
- Revenue Growth 5Y 6.4%
- Earnings Quality (OCF/NI) 2.07
- Share Dilution 0.1%
- Piotroski F-Score 6/9
Failed (8)
- ROIC 4.6%
- Positive Free Cash Flow
- Current Ratio
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 37% Buy
- Earnings Surprise avg -1.8%
- PEG Ratio 2.90
Unavailable (5)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Net Margin Trend (invalid data)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. John C. Griffith | CEO, President & Director | 58 |
| Mr. David M. Bowler | Executive VP & CFO | 46 |
| Ms. Cheryl D. Norton | Executive VP & COO | 60 |
| Mr. Stacy A. Mitchell | Executive VP & General Counsel | 49 |
| Ms. Maureen Duffy | Executive VP of Communications & External Affairs | 55 |
| Ms. Melissa K. Wikle | Senior VP & Chief Accounting Officer | 59 |
| Ms. Deborah A. Degillio | Chief Technology & Information Officer | 53 |
| Mr. Aaron Musgrave CPA | Vice President of Investor Relations | - |
| Ms. Lori Sutton | Executive VP & Chief Human Resources Officer | 52 |
| Mr. Nicholas Santillo Jr., C.P.P. | Vice President of Digital Infrastructure & Security and Interim Head of Innovation & Technology | - |
Audit Risk
5
Board Risk
1
Compensation Risk
1
Shareholder Rights Risk
4
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-17
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for AWK, sourced from Markets Gazette.