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Upturn AI SWOT - About
AWK 
American Water Works (AWK)
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Upturn Advisory Summary
07/14/2025: AWK (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
15 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $143.08
1 Year Target Price $143.08
| 3 | Strong Buy |
| 0 | Buy |
| 9 | Hold |
| 2 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.09% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/14/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 27.75B USD | Price to earnings Ratio 25.92 | 1Y Target Price 143.08 |
Price to earnings Ratio 25.92 | 1Y Target Price 143.08 | ||
Volume (30-day avg) 15 | Beta 0.7 | 52 Weeks Range 117.30 - 154.57 | Updated Date 07/13/2025 |
52 Weeks Range 117.30 - 154.57 | Updated Date 07/13/2025 | ||
Dividends yield (FY) 2.38% | Basic EPS (TTM) 5.49 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.24% | Operating Margin (TTM) 32.84% |
Management Effectiveness
Return on Assets (TTM) 3.48% | Return on Equity (TTM) 10.43% |
Valuation
Trailing PE 25.92 | Forward PE 24.75 | Enterprise Value 42140202698 | Price to Sales(TTM) 5.76 |
Enterprise Value 42140202698 | Price to Sales(TTM) 5.76 | ||
Enterprise Value to Revenue 8.75 | Enterprise Value to EBITDA 15.35 | Shares Outstanding 195012000 | Shares Floating 194588440 |
Shares Outstanding 195012000 | Shares Floating 194588440 | ||
Percent Insiders 0.14 | Percent Institutions 94.24 |
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 evolved from a holding company into the largest publicly traded water and wastewater utility company in the United States, serving millions of customers across multiple states.
Core Business Areas
- Regulated Businesses: This segment provides water and wastewater services to residential, commercial, and industrial customers in approximately 14 states. These operations are subject to regulatory oversight regarding rates and service quality.
- Market-Based Businesses: This segment offers services beyond regulated operations, including water management, infrastructure solutions, and military base services. These businesses are not subject to the same regulatory constraints as the regulated segment.
Leadership and Structure
Susan Story previously served as CEO, succeeded by Walter Lynch. The company is structured with a board of directors and executive leadership overseeing its various segments.
Top Products and Market Share
Key Offerings
- Water Services: American Water's primary product is the delivery of clean and reliable water to residential, commercial, and industrial customers. Market share data is not publicly available as a consolidated figure; however, it is the largest publicly traded U.S. water and wastewater utility. Competitors include Veolia, Suez, and other municipal water systems.
- Wastewater Services: The company also provides wastewater collection and treatment services. Similar to water services, specific market share data is not publicly available, but it holds a significant position. Competitors include Veolia, Suez, and other municipal wastewater systems.
Market Dynamics
Industry Overview
The water and wastewater industry is characterized by increasing infrastructure needs, stringent regulatory requirements, and growing demand for water resources. Consolidation is occurring in the space as many municipalities look to privatize operations.
Positioning
American Water is a leading player in the fragmented U.S. water and wastewater market, with a strong track record of operational efficiency and regulatory compliance. It benefits from economies of scale and a diversified geographic footprint.
Total Addressable Market (TAM)
The TAM for water and wastewater services in the U.S. is estimated to be over $100 billion annually. American Water is well-positioned to capture a significant portion of this market through organic growth, acquisitions, and infrastructure investments.
Upturn SWOT Analysis
Strengths
- Large scale and geographic diversification
- Operational efficiency
- Strong regulatory relationships
- Proven track record of acquisitions
- Essential service provider
Weaknesses
- Capital intensive business
- Exposure to regulatory risks
- Susceptibility to weather-related events
- Dependence on rate approvals
- High debt levels
Opportunities
- Further industry consolidation
- Infrastructure investment needs
- Expansion into new geographic areas
- Growth in market-based businesses
- Technological innovation
Threats
- Changes in regulatory environment
- Increased competition
- Water scarcity and environmental concerns
- Rising interest rates
- Economic downturn
Competitors and Market Share
Key Competitors
- SJW Group (SJW)
- Essential Utilities Inc. (WTRG)
- California Water Service Group (CWT)
Competitive Landscape
American Water's scale and geographic diversification provide a competitive advantage. It competes primarily with other publicly traded water utilities and municipal water systems.
Major Acquisitions
MPC Enterprises, LLC
- Year: 2022
- Acquisition Price (USD millions): 39
- Strategic Rationale: MPC Enterprises added approximately 32,000 customer connections in the Commonwealth of Pennsylvania.
Growth Trajectory and Initiatives
Historical Growth: American Water has experienced steady growth through organic expansion and acquisitions.
Future Projections: Analyst estimates suggest continued growth in revenue and earnings driven by infrastructure investments and rate increases.
Recent Initiatives: American Water has been actively pursuing acquisitions and investing in infrastructure upgrades to enhance its service quality and expand its footprint.
Summary
American Water Works is a robust company due to its essential service offerings and regulated business model. Its strengths include its size, operational efficiency, and dividend payouts. However, it faces challenges such as regulatory risks and high debt. The company needs to watch out for water scarcity concerns, rising interest rates, and economic downturns to maintain its position in the industry.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC filings (10-K, 10-Q)
- Company Investor Relations website
- Financial news sources (e.g., Yahoo Finance, Bloomberg)
- Analyst reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data may not be precise and can vary across different sources.
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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