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American Water Works (AWK)



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Upturn Advisory Summary
08/28/2025: AWK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $141.6
1 Year Target Price $141.6
3 | Strong Buy |
0 | Buy |
9 | Hold |
2 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.76% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.24B USD | Price to earnings Ratio 25.75 | 1Y Target Price 141.6 |
Price to earnings Ratio 25.75 | 1Y Target Price 141.6 | ||
Volume (30-day avg) 15 | Beta 0.64 | 52 Weeks Range 116.64 - 153.69 | Updated Date 08/28/2025 |
52 Weeks Range 116.64 - 153.69 | Updated Date 08/28/2025 | ||
Dividends yield (FY) 2.16% | Basic EPS (TTM) 5.55 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 21.91% | Operating Margin (TTM) 38.64% |
Management Effectiveness
Return on Assets (TTM) 3.5% | Return on Equity (TTM) 10.4% |
Valuation
Trailing PE 25.75 | Forward PE 25.19 | Enterprise Value 42854438038 | Price to Sales(TTM) 5.71 |
Enterprise Value 42854438038 | Price to Sales(TTM) 5.71 | ||
Enterprise Value to Revenue 8.74 | Enterprise Value to EBITDA 15.38 | Shares Outstanding 195099008 | Shares Floating 194645937 |
Shares Outstanding 195099008 | Shares Floating 194645937 | ||
Percent Insiders 0.14 | Percent Institutions 95.26 |
Upturn AI SWOT
American Water Works

Company Overview
History and Background
American Water Works was founded in 1886 as the American Water Works & Guarantee Company. It has grown through acquisitions and organic growth to become the largest publicly traded water and wastewater utility company in the United States.
Core Business Areas
- Regulated Businesses: Provides water and wastewater services to residential, commercial, and industrial customers in approximately 14 states. These services are subject to regulation by state and federal agencies, which determine rates and service standards.
- Market-Based Businesses: Offers a range of services, including water and wastewater solutions, to military bases, municipalities, and other customers. This segment also includes the company's Homeowner Services group, which provides water line protection plans.
Leadership and Structure
The company is led by its Chief Executive Officer (CEO) and a senior management team. It operates with a decentralized structure, with regional presidents overseeing operations in different geographic areas. The board of directors provides oversight and guidance.
Top Products and Market Share
Key Offerings
- Water Services: Provides potable water to residential, commercial, and industrial customers. Competitors include other public and private water utilities, such as Aqua America (WTRG) and Essential Utilities (WTRG).
- Wastewater Services: Collects and treats wastewater for residential, commercial, and industrial customers. Competitors include other public and private water utilities, such as Aqua America (WTRG) and Essential Utilities (WTRG).
- Homeowner Services: Offers protection plans for water lines, sewer lines, and other home infrastructure. Competitors include insurance companies and other home warranty providers.
Market Dynamics
Industry Overview
The water and wastewater utility industry is characterized by essential services, regulated pricing, and significant capital investment requirements. The industry is consolidating, with larger companies acquiring smaller systems.
Positioning
American Water Works is the largest publicly traded water and wastewater utility in the US. Its competitive advantages include its scale, geographic diversification, and expertise in operating and maintaining water infrastructure.
Total Addressable Market (TAM)
The TAM for water and wastewater services in the US is estimated to be over $150 billion annually. American Water Works is positioned to capture a significant portion of this market through organic growth, acquisitions, and infrastructure investments.
Upturn SWOT Analysis
Strengths
- Largest publicly traded water and wastewater utility
- Geographic diversification
- Strong regulatory relationships
- Experienced management team
- Essential service provider
Weaknesses
- High capital expenditure requirements
- Susceptibility to regulatory changes
- Exposure to environmental risks
- Dependence on acquisitions for growth
Opportunities
- Acquisition of smaller water systems
- Infrastructure investment projects
- Expansion into new geographic areas
- Development of new technologies
- Growing demand for water services
Threats
- Increasing regulatory scrutiny
- Rising operating costs
- Water scarcity and drought
- Aging infrastructure
- Competition from other water utilities
Competitors and Market Share
Key Competitors
- Essential Utilities (WTRG)
- California Water Service Group (CWT)
- SJW Group (SJW)
Competitive Landscape
American Water Works has a scale and geographic diversification advantage over its competitors. However, some competitors may have stronger positions in specific geographic markets.
Major Acquisitions
Borough of Royersford Wastewater System
- Year: 2023
- Acquisition Price (USD millions): 58.2
- Strategic Rationale: To expand the footprint of their business and provide better economies of scale for the region.
Growth Trajectory and Initiatives
Historical Growth: American Water Works has grown steadily over the past decade through acquisitions, organic growth, and infrastructure investments.
Future Projections: Analysts estimate that American Water Works will continue to grow revenue and earnings at a rate of 5-7% per year over the next five years, with earnings per share (EPS) growth of 5-7% per year.
Recent Initiatives: Recent strategic initiatives include investments in infrastructure upgrades, expansion into new geographic areas, and the development of new technologies.
Summary
American Water Works is the strongest water/wastewater utility player because of its scale and geographic diversity. The essential nature of the services provided leads to stability, but it must watch out for regulatory risk and infrastructure upgrade requirements. The steady growth through acquisitions and organic growth is working well. Infrastructure investment and technological advancement are key.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
- YCharts
- Investor Relations
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share is estimated and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About American Water Works
Exchange NYSE | Headquaters Camden, NJ, United States | ||
IPO Launch date 2008-04-23 | CEO, President & Director Mr. John C. Griffith | ||
Sector Utilities | Industry Utilities - Regulated Water | Full time employees 6700 | Website https://www.amwater.com |
Full time employees 6700 | Website https://www.amwater.com |
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; 190 wastewater treatment plants; 54,500 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 3.5 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. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey.

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