American Water Works to Acquire Water and Wastewater Systems in Illinois

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AWK Intrinsic Value – Illinois American Water, a unit of U.S. utility American Water Works($NYSE:AWK), on Thursday said it would acquire the water and wastewater systems of Villa Grove city in Illinois for $11M. The newly acquired systems will add about 1.5K water and 1.1K wastewater customers to the company’s eastern Illinois service area, the AWK unit said in a statement.

This acquisition is part of American Water’s strategy to grow its presence in the Midwest. The company believes that the Villa Grove water and wastewater systems are a good fit with its existing operations and will help it provide high-quality service to its customers.

Stock Price

This news caused the stock to open at $143.4 and close at $142.8, down 1.1% from the previous day’s closing price of $144.3.

VI Analysis – AWK Intrinsic Value

Company’s fundamentals reflect its long term potential, below analysis on AMERICAN WATER WORKS are made simple by VI app. The fair value of AMERICAN WATER WORKS share is around $167.6, calculated by VI Line. Now AMERICAN WATER WORKS stock is traded at $142.8, a fair price undervalued by 15%.

Summary

The move will help the company to serve a greater number of customers in the state, as well as to expand its footprint in the Midwest. The acquisition is still subject to regulatory approval, but if all goes according to plan, American Water Works will be adding a number of new water and wastewater systems to its portfolio. This will not only help the company to grow its business, but also to improve its environmental sustainability. American Water Works is committed to providing clean, safe, and affordable water to its customers, and this acquisition is just one more way that the company is working to achieve that goal.