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Upturn AI Summary - About
American Water Works(AWK)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for AWK
10/23/2026: AWK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
American Water Works is the largest publicly traded water and wastewater utility in the United States, known for its stable, regulated business model. The company utilizes a proven strategy of inorganic growth through municipal acquisitions combined with massive internal infrastructure investment to increase its rate base. While this provides a reliable income stream ideal for dividend-oriented investors, the company faces risks from rising capital costs and regulatory rate-setting decisions. Investors should monitor progress in major rate case filings and the company's ability to maintain efficiency amid inflationary pressures. It serves as a defensive core holding for portfolios seeking long-term reliability rather than aggressive capital gains.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers steady, predictable growth rather than rapid, high-alpha expansion. |
| Momentum investor | Weak fit | This is a defensive utility stock, not typically driven by high-momentum market cycles. |
| Value investor | Mixed fit | While stable, the stock often trades at a premium valuation relative to broader market averages. |
| Dividend investor | Strong fit | The company is a core holding for dividend growth investors seeking reliability. |
| Low-risk investor | Strong fit | Regulated utility services provide a low-volatility profile suitable for risk-averse portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Low | Utilities generally exhibit lower beta and volatility than the broader equity market. |
| Valuation risk | Medium | Utility stocks are highly sensitive to interest rate environments and yield competition. |
| Competition risk (Utility sector) | Low | The regulated nature of the business creates high barriers to entry. |
| Business quality | Strong | The company operates a essential service with regulated monopolies. |
| Dividend income | Low / none | The dividend is considered highly secure due to stable cash flows. |
| Execution risk | Medium | Efficiently executing massive capital improvement programs is vital to maintaining returns. |
Price Behavior
Steady Uptrend
The stock demonstrates consistent and steady upward price momentum.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit -9.86% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.37B USD | Price to earnings Ratio 24.74 | 1Y Target Price 140.55 |
Price to earnings Ratio 24.74 | 1Y Target Price 140.55 | ||
Volume (30-day avg) 1.9M shares | Beta 0.57 | 52 Weeks Range 118.82 - 144.14 | Updated Date 10/24/2026 |
52 Weeks Range 118.82 - 144.14 | Updated Date 10/24/2026 | ||
Dividends yield (FY) 2.36% | Basic EPS (TTM) 5.77 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Regulated Water/Wastewater | Monthly service fees and volumetric usage charges for households and businesses. | This is the core, stable business that generates the bulk of company revenue. |
| Market-Based Services | Military utility privatization contracts and home warranty services. | These non-regulated activities offer supplemental, higher-margin growth opportunities. |
| Geography | Operations concentrated across 14 states in the U.S. | Geographic breadth provides a buffer against localized economic or regulatory downturns. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-10-28 | When After Market | Estimate 2.11 | Actual - |
Profitability
Profit Margin 21.35% | Operating Margin (TTM) 40.66% |
Management Effectiveness
Return on Assets (TTM) 3.52% | Return on Equity (TTM) 10.1% |
Valuation
Trailing PE 24.74 | Forward PE 20.75 | Enterprise Value 43.23B | Price to Sales(TTM) 5.37 |
Enterprise Value 43.23B | Price to Sales(TTM) 5.37 | ||
Enterprise Value to Revenue 8.18 | Enterprise Value to EBITDA 14.3 | Shares Outstanding 198.73M | Shares Floating 198.32M |
Shares Outstanding 198.73M | Shares Floating 198.32M | ||
Percent Insiders 0.12 | Percent Institutions 110.25 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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