AWK official logo AWK
AWK 1-star rating from Upturn Advisory
American Water Works (AWK) company logo

American Water Works (AWK)

American Water Works (AWK) 1-star rating from Upturn Advisory
$130.97
Last Close (24-hour delay)
Profit since last BUY-10.69%
upturn advisory logo
SELL
SELL since 4 days
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • 1Y
  • 1M
  • 1W

Upturn Advisory Summary

11/05/2025: AWK (1-star) is a SELL. SELL since 4 days. Simulated Profits (-10.69%). Updated daily EoD!

Upturn Star Rating

Upturn 1 star rating for performance

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

3 star rating from financial analysts

15 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $142.09

1 Year Target Price $142.09

Analysts Price Target For last 52 week
$142.09 Target price
52w Low $116.64
Current$130.97
52w High $153.69

Analysis of Past Performance

Type Stock
Historic Profit -19.78%
Avg. Invested days 39
Today’s Advisory SELL
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/05/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 25.56B USD
Price to earnings Ratio 23.02
1Y Target Price 142.09
Price to earnings Ratio 23.02
1Y Target Price 142.09
Volume (30-day avg) 15
Beta 0.75
52 Weeks Range 116.64 - 153.69
Updated Date 11/5/2025
52 Weeks Range 116.64 - 153.69
Updated Date 11/5/2025
Dividends yield (FY) 2.49%
Basic EPS (TTM) 5.69

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2025-10-29
When -
Estimate 1.89
Actual 1.94

Profitability

Profit Margin 21.93%
Operating Margin (TTM) 42.59%

Management Effectiveness

Return on Assets (TTM) 3.55%
Return on Equity (TTM) 10.46%

Valuation

Trailing PE 23.02
Forward PE 22.12
Enterprise Value 41422414563
Price to Sales(TTM) 5.04
Enterprise Value 41422414563
Price to Sales(TTM) 5.04
Enterprise Value to Revenue 8.38
Enterprise Value to EBITDA 14.75
Shares Outstanding 195123565
Shares Floating 194653317
Shares Outstanding 195123565
Shares Floating 194653317
Percent Insiders 0.14
Percent Institutions 94.97

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

American Water Works

American Water Works(AWK) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo 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.

Company business area logo Core Business Areas

  • Regulated Businesses: Provides water and wastewater services to residential, commercial, and industrial customers in approximately 14 states. Rates are typically regulated by state public utility commissions.
  • Market-Based Businesses: Offers a range of services, including water and wastewater solutions for military bases, municipalities, and other customers, often through long-term contracts.

leadership logo Leadership and Structure

Susan Story is the former CEO; the current CEO is Walter Lynch. The company operates with a decentralized structure, with regional presidents overseeing operations in various states.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Wastewater Services: Collects, treats, and disposes of wastewater. American Water Works has approximately 14 million people. Competitors: Veolia North America, Suez Water.
  • Water Services: Provides potable water to residential, commercial, and industrial customers. American Water Works has approximately 14 million people. Competitors: Veolia North America, Suez Water.
  • Military Services Group: Provides water and wastewater services to military bases. Market share difficult to quantify precisely, but American Water Works is a major player. Competitors: Veolia North America, Suez Water.

Market Dynamics

industry overview logo Industry Overview

The water utility industry is characterized by high capital intensity, regulation, and relatively stable demand. Aging infrastructure and increasing environmental regulations are key challenges.

Positioning

American Water Works is the largest player in a fragmented market, benefiting from economies of scale, brand recognition, and expertise in regulatory compliance. Their competitive advantage lies in their size, geographic diversity, and operational efficiency.

Total Addressable Market (TAM)

The total addressable market is valued in the hundreds of billions, encompassing all water and wastewater service provisions in the United States. American Water Works, as the largest company, captures a meaningful portion of this TAM and is positioned to continue growing through acquisitions and organic expansion.

Upturn SWOT Analysis

Strengths

  • Largest publicly traded water utility
  • Geographic diversification
  • Strong regulatory expertise
  • Stable revenue stream
  • Established customer base

Weaknesses

  • High capital expenditure requirements
  • Exposure to regulatory changes
  • Sensitivity to interest rate fluctuations
  • Dependence on acquisitions for growth
  • Public perception challenges related to rate increases

Opportunities

  • Acquisition of smaller water utilities
  • Infrastructure upgrades and modernization
  • Expansion into new geographic areas
  • Development of innovative water treatment technologies
  • Addressing water scarcity issues

Threats

  • Stringent environmental regulations
  • Aging infrastructure
  • Water scarcity and drought conditions
  • Cybersecurity risks
  • Political and economic instability

Competitors and Market Share

Key competitor logo Key Competitors

  • Suez (GSE: LYSA)
  • Essential Utilities (WTRG)
  • California Water Service Group (CWT)

Competitive Landscape

American Water Works benefits from its size and scale. It is positioned to consolidate a fragmented market. Competitors like Essential Utilities and California Water Service Group focus on specific geographic regions.

Major Acquisitions

MPC Enterprises, LLC

  • Year: 2022
  • Acquisition Price (USD millions): 112
  • Strategic Rationale: The acquisition of MPC Enterprises, LLC, operating as Mountain Park Co-Op, Inc. (Mountain Park), added approximately 11,000 customers in Cherokee County, Georgia. The acquisition complements AWK's existing footprint in the state and allows it to expand its service territory.

Clermont County Water Resources Department

  • Year: 2023
  • Acquisition Price (USD millions): 220
  • Strategic Rationale: Acquisition of the water assets of the Clermont County Water Resources Department adds approximately 88,000 customer equivalents in Ohio. This acquisition helps AWK to further expand and strengthen its water and wastewater operations in the state.

Growth Trajectory and Initiatives

Historical Growth: American Water Works has grown steadily through a combination of organic growth and acquisitions.

Future Projections: Analysts project continued growth for American Water Works, driven by infrastructure investments, population growth, and the need for reliable water services.

Recent Initiatives: Recent initiatives include investments in smart water technologies, expansion into new markets, and partnerships with municipalities to address water infrastructure challenges.

Summary

American Water Works is a strong, stable company with a consistent history of growth and dividend increases. Its size and scale provide a competitive advantage in a fragmented market. However, the company faces challenges related to aging infrastructure, regulatory changes, and the need for significant capital investments and will need to continue to acquire and invest to stay ahead.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company filings (10-K, 10-Q), Investor presentations, Analyst reports, News articles

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company-specific factors can change rapidly. Consult with a qualified financial advisor before making investment decisions.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries 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
Full time employees 6700

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.