AWK Intrinsic Value Calculation – Despite Daily Gains, American Water Works Co. Stock Underperforms Competitors on Friday

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American Water Works ($NYSE:AWK) Co. (AWK) is the largest publicly traded water and wastewater utility company in the United States. As a leading player in the water utility sector, AWK has been a favorite among investors for its stable financial performance and consistent dividend payments.

However, despite this positive trend, shares of American Water Works Co. underperformed when compared to its competitors. The stock saw a modest increase of 0.68% to $148.13, while some of its peers in the industry experienced larger gains. One possible reason for this underperformance could be the concerns surrounding the company’s recent regulatory developments. In April, AWK filed for a rate increase request with the New Jersey Board of Public Utilities (BPU) to recover costs associated with infrastructure investments and service improvements. This request was met with opposition from consumer groups and environmentalists, who argued that the proposed increase was unnecessary and would burden customers with higher water bills. Despite these challenges, American Water Works Co. has maintained its strong financial position and has continued to generate solid earnings.

Additionally, it has a strong track record of delivering value to its shareholders through dividend payments and share repurchases. In conclusion, while American Water Works Co. may have underperformed its competitors on Friday, it remains a solid investment choice for long-term investors. With its strong market position, consistent financial performance, and commitment to providing safe and reliable water services, the company is well-positioned to weather any short-term fluctuations in its stock price.

Price History

American Water Works Co. (AWK) experienced a slight increase in stock price on Friday, opening at $147.53 and closing at $148.13. This marks a gain of 0.68% from the previous day’s closing price of $147.13. Despite this daily gain, AWK’s stock underperformed when compared to its competitors. One possible reason for this underperformance could be attributed to the overall market trends. In contrast, AWK’s stock only saw a modest increase, potentially due to factors specific to the company. Another factor that could have affected AWK’s stock performance is competition. While American Water Works operates in the water utility industry, it faces competition from other companies in the same sector. On Friday, some of AWK’s competitors saw higher gains in their stock prices compared to AWK’s 0.68% increase. This could indicate that investors have more confidence in the growth potential of these competitors. This shows that while Friday’s performance may have been relatively lower compared to its competitors, AWK has still seen overall positive results in the stock market. In conclusion, American Water Works Co.’s stock saw a slight increase on Friday but failed to outperform its competitors. This could be due to various factors such as market trends and competition in the water utility industry.

However, it is important to note that AWK’s stock has had a strong performance over the past year, which may indicate long-term growth potential for the company. As always, it is important for investors to carefully consider all factors and do their own research before making any investment decisions. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for AWK. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for AWK. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for AWK. More…

Key Ratios Snapshot

Some of the financial key ratios for AWK are shown below. More…

Analysis – AWK Intrinsic Value Calculation

After conducting a thorough analysis of AMERICAN WATER WORKS, I am pleased to report that the company is in good overall health. Our team at GoodWhale has evaluated various aspects of the company, including its financial performance, market trends, and future prospects, to determine its intrinsic value and current trading price. Based on our proprietary Valuation Line, we have calculated AMERICAN WATER WORKS’s intrinsic value to be approximately $153.3 per share. This value takes into consideration various factors such as the company’s revenue, earnings, and growth potential. It serves as a benchmark for determining whether the stock is overvalued or undervalued. Currently, AMERICAN WATER WORKS’s stock is being traded at $148.13, which indicates that it is slightly undervalued by 3.4%. This suggests that there is room for potential growth in the stock’s price, making it an attractive investment opportunity. In addition to its undervalued status, AMERICAN WATER WORKS also has a strong track record of financial performance and a positive outlook for the future. The company has consistently generated solid revenue and earnings growth, indicating its ability to weather economic downturns and remain profitable. Furthermore, with increasing demand for clean water and sanitation services, AMERICAN WATER WORKS is well-positioned to capitalize on this trend and maintain its growth trajectory. As always, we recommend that investors conduct their own research and consult with a financial advisor before making any investment decisions. We believe that with its solid fundamentals and promising future prospects, AMERICAN WATER WORKS is a stock worth considering for long-term investment. More…

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

On Friday, American Water Works Co. (AWK) stock showed lackluster performance compared to its competitors despite a 0.68% increase in share price to $148.13. This occurred on a day when the overall stock market had a positive trading session. The company is currently underperforming in terms of investor interest. It is important for potential investors to closely monitor American Water Works Co.’s financial performance and market trends to make informed investment decisions.