AWK Stock Fair Value Calculation – AMERICAN WATER WORKS Reports 17.1% Increase in Q2 FY2023 Revenue to USD 1097.0 Million
August 4, 2023
☀️Earnings Overview
On June 30 2023, AMERICAN WATER WORKS ($NYSE:AWK) released their financial results for Q2 of the fiscal year 2023, noting a 17.1% increase in revenue to USD 1097.0 million and a 28.4% jump in net income, reaching USD 280.0 million, year-over-year.
Analysis – AWK Stock Fair Value Calculation
GoodWhale has conducted an analysis of AMERICAN WATER WORKS’s wellbeing and concluded that the intrinsic value of their share is around $152.3. This figure was calculated by using GoodWhale’s proprietary Valuation Line. This provides a potential opportunity for investors to receive a higher return compared to the current market rate. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWK. More…
| Total Revenues | Net Income | Net Margin |
| 4.05k | 894 | 21.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWK. More…
| Operations | Investing | Financing |
| 1.63k | -2.71k | 1.82k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AWK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.5k | 19.8k | 49.83 |
Key Ratios Snapshot
Some of the financial key ratios for AWK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.1% | 5.2% | 38.7% |
| FCF Margin | ROE | ROA |
| -24.2% | 10.2% | 3.3% |
Peers
American Water Works Co Inc, American States Water Co, Global Water Resources Inc, and Artesian Resources Corp are all water utilities companies. They are all in the business of providing water and wastewater services to residential, commercial, and industrial customers.
– American States Water Co ($NYSE:AWR)
American States Water Co is a water and wastewater utility company that serves nearly million people in the United States. The company has a market cap of 3.22B as of 2022 and a ROE of 12.01%. American States Water Co is the largest water utility company in California and the fourth largest in the United States. The company also provides wastewater services to approximately 700,000 people in Arizona, Illinois, New Mexico, and Texas.
– Global Water Resources Inc ($NASDAQ:GWRS)
Global Water Resources, Inc. is a water resource management company that provides water and wastewater services to residential and commercial customers in the Phoenix metropolitan area. The company has a market cap of $296.66 million and a return on equity of 21.79%. Global Water Resources is headquartered in Scottsdale, Arizona.
– Artesian Resources Corp ($NASDAQ:ARTNA)
Artesian Resources Corp is a water utility company that serves the metropolitan area of Wilmington, Delaware. It is the largest provider of water and wastewater services in the state of Delaware, and is the 8th largest provider of water and wastewater services in the United States. The company has a market cap of 496.24M as of 2022 and a Return on Equity of 10.87%.
Summary
American Water Works recently reported excellent financial results for the second quarter of FY2023, with total revenue increasing by 17.1% year-over-year to USD 1097.0 million and net income increasing 28.4% to USD 280.0 million. This strong performance demonstrates the resilience of the company’s business model and is likely to attract increased interest from investors. The company’s balance sheet is strong and it is well positioned to continue to deliver long-term value and growth.
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