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
$130.09
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Upturn Advisory Summary

12/11/2025: AWK (1-star) is currently NOT-A-BUY. Pass it for now.

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 $115.89
Current$130.09
52w High $152.71

Analysis of Past Performance

Type Stock
Historic Profit -19.76%
Avg. Invested days 39
Today’s Advisory PASS
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 12/11/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 25.12B USD
Price to earnings Ratio 22.62
1Y Target Price 142.09
Price to earnings Ratio 22.62
1Y Target Price 142.09
Volume (30-day avg) 15
Beta 0.75
52 Weeks Range 115.89 - 152.71
Updated Date 12/10/2025
52 Weeks Range 115.89 - 152.71
Updated Date 12/10/2025
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 -
When -
Estimate -
Actual -

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 22.62
Forward PE 21.01
Enterprise Value 40210084854
Price to Sales(TTM) 4.95
Enterprise Value 40210084854
Price to Sales(TTM) 4.95
Enterprise Value to Revenue 7.93
Enterprise Value to EBITDA 13.86
Shares Outstanding 195123565
Shares Floating 193353794
Shares Outstanding 195123565
Shares Floating 193353794
Percent Insiders 0.14
Percent Institutions 98.84

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 began by providing water to communities in Pennsylvania and has expanded to become the largest publicly traded water and wastewater utility company in the United States.

Company business area logo Core Business Areas

  • Regulated Businesses: This segment provides water and wastewater services to residential, commercial, and industrial customers in regulated service areas across various states. It includes activities related to the production, treatment, and distribution of water, as well as the collection, treatment, and disposal of wastewater.
  • Market-Based Businesses: This segment focuses on providing water and wastewater services to military bases, municipalities, and other non-regulated customers. This includes building, operating, and maintaining water and wastewater systems under contract.

leadership logo Leadership and Structure

The company is led by a board of directors and a senior management team. Susan Story was the CEO until 2021, when Walter Lynch took over. The organizational structure is hierarchical, with regional and functional departments reporting to corporate headquarters.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Water Services: Provision of potable water to residential, commercial, and industrial customers. American Water Works is the largest publicly traded water utility in the U.S. with operations in approximately 14 states. Competitors include other water utility companies like Essential Utilities (WTRG) and Aqua America.
  • Wastewater Services: Collection, treatment, and disposal of wastewater from residential, commercial, and industrial customers. They help manage water and protect it from being polluted or contaminated. Competitors include other wastewater utility companies like Veolia and Suez.
  • Contract Operations: Partner with municipalities and military bases to operate their wastewater and water facilities. Competitors include larger construction firms that will often contract to operate wastewater and water infrastructure.

Market Dynamics

industry overview logo Industry Overview

The water and wastewater utility industry is characterized by stable demand, regulated pricing, and high capital intensity. Aging infrastructure and increasing environmental regulations are driving investment in system upgrades. The demand for water services are growing as well due to increases in population.

Positioning

American Water Works is positioned as a leader in the U.S. water and wastewater utility industry, leveraging its scale, expertise, and technology to provide reliable and cost-effective services. Their competitive advantages include a large service area and strong brand recognition.

Total Addressable Market (TAM)

The TAM for water and wastewater services in the U.S. is estimated to be hundreds of billions of dollars, encompassing both regulated and market-based segments. American Water Works is positioned to capture a significant share of this market through organic growth and strategic acquisitions.

Upturn SWOT Analysis

Strengths

  • Largest publicly traded water utility in the U.S.
  • Diversified geographic footprint
  • Strong regulatory relationships
  • Proven track record of acquisitions and integration
  • Focus on operational efficiency and innovation

Weaknesses

  • Capital intensive business model
  • Exposure to regulatory risks and rate case outcomes
  • Dependence on aging infrastructure
  • Sensitivity to weather patterns and water availability

Opportunities

  • Aging infrastructure replacement
  • Consolidation of fragmented water utilities
  • Expansion of market-based businesses
  • Adoption of advanced technologies
  • Increased demand for water reuse and conservation

Threats

  • Economic downturns affecting customer demand
  • Changes in environmental regulations
  • Water scarcity and climate change
  • Cybersecurity risks
  • Rising interest rates

Competitors and Market Share

Key competitor logo Key Competitors

  • WTRG
  • SUEZ
  • AWK

Competitive Landscape

American Water Works benefits from its large scale and diversified operations, providing a competitive advantage over smaller, regional players. However, companies like Essential Utilities (WTRG) have smaller portfolios that are quicker to turn around. They're both in competition to acquire smaller municipal water systems.

Major Acquisitions

Pennsylvania American Water

  • Year: 2023
  • Acquisition Price (USD millions): 127
  • Strategic Rationale: Expanded regulated service area and customer base in Pennsylvania.

Growth Trajectory and Initiatives

Historical Growth: American Water Works has demonstrated steady growth over the past decade, driven by organic investments in infrastructure and strategic acquisitions. The company has consistently expanded its customer base and geographic footprint.

Future Projections: Analyst estimates suggest continued growth for American Water Works, supported by increasing demand for water services and ongoing infrastructure investments. The company's focus on operational efficiency and innovation is expected to drive future profitability.

Recent Initiatives: Recent initiatives include investments in smart water technologies, expansion of its market-based businesses, and strategic acquisitions of smaller water utilities.

Summary

American Water Works is a stable and growing company in the essential water utility industry. Its strengths include its size, diversified geographic footprint, and track record of acquisitions. The company faces challenges from regulatory risks, capital intensity, and aging infrastructure. However, opportunities exist in aging infrastructure replacement and industry consolidation.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company filings (10-K reports)
  • Industry reports
  • Analyst estimates
  • Financial News Providers

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Market share data is approximate and may vary depending on the source and methodology.

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.