AWK Utilities

American Water Works Company, Inc.

$146.42-0.69%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Utilities
Industry: Utilities - Regulated Water
Country: United States
Market cap: 29.1B USD
Enterprise value: 42.6B USD
Full-time employees: 7,000

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.52 vs a peer median of 1.03)higher risk: less liquidity (current ratio 0.52 vs peers 1.03)

Ranks #185 of 348 utilities companies (bottom 48%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.
American Water Works reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.
Paying shareholders without free cash flow. Paid out $1.8B over the 3 fiscal years to 2025 with -$2.6B of free cash flow.
American Water Works returned $1.8B in buybacks and dividends over three fiscal years while its free cash flow totalled -$2.6B. The money came from its cash pile or from borrowing.
Wide margins. Operating margin 37% (12 months to Jun 2026) vs a peer median of 19%.Operating margin 37% vs peers 19%.
American Water Works keeps 37% of revenue as operating profit, more than 89% of peers (median 19%).

StockQuotient Score

48/ 100▼ 1 since Oct 27 close

Oct 5 50 → Nov 4 48 (-2)

Valuation

Is the price right?

27/100

Weak▼ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 28 → 27

Share price +3.8%-4
Company's reported figures updated+1
Peer companies moved+2

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ EBITDA yield
▼ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.9%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.30Sector median: 0.0485 · MAD: 0.0319

EBITDA yield6.4%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.86Sector median: 0.0859 · MAD: 0.0250

Free cash flow yield-3.5%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield40.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.6310 · MAD: 0.2684

Growth

Is it growing?

72/100

Moderate▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 71 → 72

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth2.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.03Sector median: 0.0172 · MAD: 0.1791

3-year revenue growth9.5%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 1.44Sector median: 0.0196 · MAD: 0.0523

Revenue growth7.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.69Sector median: 0.0254 · MAD: 0.0681

Profitability

Does it earn well?

73/100

Moderate▼ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 74 → 73

Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin37.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.13Sector median: 0.1864 · MAD: 0.0865

Return on assets3.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.35Sector median: 0.0266 · MAD: 0.0124

Return on invested capital5.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.16Sector median: 0.0524 · MAD: 0.0237

Other data (not scored)

Gross margin61.5%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.3581 · MAD: 0.1545

Return on equity9.7%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0807 · MAD: 0.0381

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.57

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.64Sector median: 0.4590 · MAD: 0.1730

Current ratio0.52×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.41Sector median: 1.0330 · MAD: 0.3620

Debt / equity1.37×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.34Sector median: 1.1925 · MAD: 0.5265

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about American Water Works

Is American Water Works getting weaker?: Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 48/100, down 1 since Oct 28, 2026.
How is American Water Works valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 27/100 against 360 utilities peers. EBITDA yield 6.4% vs a peer median of 8.6% (weaker than 77% of peers).EBITDA yield 6.4% vs peers 8.6% (weaker than 77% of peers).
Is American Water Works growing?: Yes, faster than most of its peers. Growth scores 72/100 against 360 utilities peers. 3-year revenue growth 9.5% vs a peer median of 2.0% (stronger than 84% of peers).3-year revenue growth 9.5% vs peers 2.0% (stronger than 84% of peers).
How profitable is American Water Works?: More profitable than most of its peers. Profitability scores 73/100 against 360 utilities peers. Operating margin 37.1% vs a peer median of 18.6% (stronger than 89% of peers).Operating margin 37.1% vs peers 18.6% (stronger than 89% of peers).
How risky is American Water Works?: Higher risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Current ratio 0.52× vs a peer median of 1.03× (weaker than 90% of peers).Current ratio 0.52× vs peers 1.03× (weaker than 90% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 29, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	5.2B USD	5.3B USD	+1.5%
Net income (12 months)	1.1B USD	1.1B USD	+2.4%
Operating margin	36.6%	37.1%	+0.5 pts
Free cash flow (12 months)	−1.2B USD	−1.0B USD	−14.5%
Debt	15.6B USD	16.0B USD	+2.3%
Cash	137.0M USD	191.0M USD	+39.4%
Shares outstanding	195.3M	198.7M	+1.8%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Utilities · 59 companies

Valuations in Utilities are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
20% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +18% and earnings +20% (medians): prices and earnings moved broadly together.
Median price-to-sales is +2% vs the whole market, against a usual +0%.

2016Shaded: most expensive fifth of its range2026

Shown for Utilities: too few Utilities - Regulated Water companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	30.6%	33.8%	35.7%	36.9%	36.7%	▼ 0.2 pts
Net margin	32.3%	21.8%	22.4%	22.6%	21.7%	▼ 0.9 pts
Return on assets (ROA)	4.8%	3.0%	3.1%	3.2%	3.1%	▼ 0.1 pts
Return on equity (ROE)	17.3%	10.7%	9.6%	10.2%	10.3%	▲ 0.1 pts
Free cash flow margin	-8.3%	-31.6%	-16.6%	-17.4%	-20.8%	▼ 3.4 pts
Current ratio	0.73×	0.44×	0.65×	0.39×	0.46×	▲ 20%
Debt to equity	1.50×	1.61×	1.26×	1.36×	1.46×	▲ 7.6%
Interest coverage	—	2.94×	3.27×	3.28×	3.06×	▼ 7.0%

AWK price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.52 vs a peer median of 1.03)higher risk: less liquidity (current ratio 0.52 vs peers 1.03)

Ranks #185 of 348 utilities companies (bottom 48%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.

American Water Works reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

Paying shareholders without free cash flow. Paid out $1.8B over the 3 fiscal years to 2025 with -$2.6B of free cash flow.

American Water Works returned $1.8B in buybacks and dividends over three fiscal years while its free cash flow totalled -$2.6B. The money came from its cash pile or from borrowing.

Wide margins. Operating margin 37% (12 months to Jun 2026) vs a peer median of 19%.Operating margin 37% vs peers 19%.

American Water Works keeps 37% of revenue as operating profit, more than 89% of peers (median 19%).

Questions investors ask about American Water Works

Is American Water Works getting weaker?

Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 48/100, down 1 since Oct 28, 2026.

How is American Water Works valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 27/100 against 360 utilities peers. EBITDA yield 6.4% vs a peer median of 8.6% (weaker than 77% of peers).EBITDA yield 6.4% vs peers 8.6% (weaker than 77% of peers).

Is American Water Works growing?

Yes, faster than most of its peers. Growth scores 72/100 against 360 utilities peers. 3-year revenue growth 9.5% vs a peer median of 2.0% (stronger than 84% of peers).3-year revenue growth 9.5% vs peers 2.0% (stronger than 84% of peers).

How profitable is American Water Works?

More profitable than most of its peers. Profitability scores 73/100 against 360 utilities peers. Operating margin 37.1% vs a peer median of 18.6% (stronger than 89% of peers).Operating margin 37.1% vs peers 18.6% (stronger than 89% of peers).

How risky is American Water Works?

Higher risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Current ratio 0.52× vs a peer median of 1.03× (weaker than 90% of peers).Current ratio 0.52× vs peers 1.03× (weaker than 90% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

5.2B USD

5.3B USD

+1.5%

Net income (12 months)

1.1B USD

1.1B USD

+2.4%

Operating margin

36.6%

37.1%

+0.5 pts

Free cash flow (12 months)

−1.2B USD

−1.0B USD

−14.5%

Debt

15.6B USD

16.0B USD

+2.3%

Cash

137.0M USD

191.0M USD

+39.4%

Shares outstanding

195.3M

198.7M

+1.8%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

30.6%

33.8%

35.7%

36.9%

36.7%

▼ 0.2 pts

Net margin

32.3%

21.8%

22.4%

22.6%

21.7%

▼ 0.9 pts

Return on assets (ROA)

4.8%

3.0%

3.1%

3.2%

3.1%

▼ 0.1 pts

Return on equity (ROE)

17.3%

10.7%

9.6%

10.2%

10.3%

▲ 0.1 pts

Free cash flow margin

-8.3%

-31.6%

-16.6%

-17.4%

-20.8%

▼ 3.4 pts

Current ratio

0.73×

0.44×

0.65×

0.39×

0.46×

▲ 20%

Debt to equity

1.50×

1.61×

1.26×

1.36×

1.46×

▲ 7.6%

Interest coverage

—

2.94×

3.27×

3.28×

3.06×

▼ 7.0%