AWKAWK
US • —
$132.82
P/E
23.50
PEG
8.10
FCF Yield
—
Rev Growth YoY
+8.1% YoY
Gross Margin
—
Health Score
6/10
D/E Ratio
1.46
Confidence
LOW
Business Snapshot
American Water Works (AWK) is a publicly traded water and wastewater utility company, providing regulated water and wastewater services to approximately 14 million people across 14 states. It operates in a highly regulated, capital-intensive market where it holds a position as the largest publicly traded water utility in the U.S., benefiting from a regulatory framework that can provide a degree of revenue stability. The company's revenue-generating model is centered on regulated rate structures, which offer a degree of predictability. Its defining characteristic is its large-scale, regulated utility moat, which insulates it from direct price competition but ties profitability to regulatory decisions and infrastructure investment.
Financial Health
Net margin of 21.2% is reported for the trailing twelve months, though gross margin data is not available for a full profitability picture. The company carries a Debt/Equity ratio of 1.46x, indicating a leveraged balance sheet that is common for capital-intensive utilities, but which limits financial flexibility...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 1.46x is elevated and, combined with a current ratio of 0.46x, indicates a highly leveraged balance sheet with potential liquidity pressure.
- EARNINGS QUALITY — The company has beaten earnings estimates in only 1 of the last 4 quarters, suggesting a limited track record of meeting or exceeding Wall Street expectations.
- VALUATION — A PEG ratio of 8.1x, when set against a modest earnings growth rate of 2.9%, points to a significantly stretched growth-adjusted valuation.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Net margin of 21.2% is reported for the trailing twelve months, though gross margin data is not available for a full profitability picture. The company carries a Debt/Equity ratio of 1.46x, indicating a leveraged balance sheet that is common for capital-intensive utilities, but which limits financial flexibility. This is reinforced by a low current ratio of 0.46x, a potential liquidity concern suggesting current assets do not cover short-term liabilities. Free cash flow data is not provided, preventing a direct assessment of the company's cash-generating ability versus its capital expenditure needs. Overall, the financial health suggests a company with solid net profitability but a stretched balance sheet that may constrain dividend growth or require ongoing debt financing.
- DEBT / LIQUIDITY — Debt/equity of 1.46x is elevated and, combined with a current ratio of 0.46x, indicates a highly leveraged balance sheet with potential liquidity pressure. - EARNINGS QUALITY — The company has beaten earnings estimates in only 1 of the last 4 quarters, suggesting a limited track record of meeting or exceeding Wall Street expectations. - VALUATION — A PEG ratio of 8.1x, when set against a modest earnings growth rate of 2.9%, points to a significantly stretched growth-adjusted valuation. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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