American Water Works Co., Inc. (AWK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consolidated Water Co. Ltd.

Artesian Resources Corp.

SJW Group

California Water Service Group

American States Water Co.

Middlesex Water Co.

Essential Utilities, Inc.

Aris Water Solutions, Inc.

The York Water Co.

American Water Works Co., Inc.

Select Water Solutions, Inc.

Why is American Water Works Co., Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.02% and Operating profit at 8.05% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 1,950 MM
DIVIDEND PER SHARE(HY) Highest at USD 6.06
DIVIDEND PAYOUT RATIO(Y) Highest at 55.84%

With ROCE of 7.12%, it has a expensive valuation with a 1.71 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.19%, its profits have risen by 11.7% ; the PEG ratio of the company is 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.19% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is American Water Works Co., Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

American Water Works Co., Inc.

-2.0%

0.05

24.55%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.36%

EBIT Growth (5y)

8.53%

EBIT to Interest (avg)

3.12

Debt to EBITDA (avg)

5.60

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

0.19

Tax Ratio

22.78%

Dividend Payout Ratio

58.10%

Pledged Shares

Institutional Holding

97.54%

ROCE (avg)

6.86%

ROE (avg)

11.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.82

EV to EBIT

24.92

EV to EBITDA

16.98

EV to Capital Employed

1.76

EV to Sales

9.10

PEG Ratio

2.11

Dividend Yield

205.56%

ROCE (Latest)

7.08%

ROE (Latest)

10.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,059 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.3

INVENTORY TURNOVER RATIO(HY)

Highest at 27.1 times

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 145.31 %

INTEREST COVERAGE RATIO(Q)

Lowest at 391.98

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.3 times

OPERATING PROFIT MARGIN(Q)

Lowest at 49.96 %

Here's what is working for American Water Works Co., Inc.

Operating Cash Flow

Highest at USD 2,059 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 4.3 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio

Highest at 27.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 231 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for American Water Works Co., Inc.

Interest Coverage Ratio

Lowest at 391.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 145.31 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit Margin

Lowest at 49.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 4.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio