AWK Intrinsic Value Calculator – Mountaineer Gas Takes West Virginia American Water to Court Over Charleston Gas Crisis
December 6, 2023
🌧️Trending News
Mountaineer Gas has filed a lawsuit against West Virginia American Water, alleging that the Charleston gas crisis was caused by the company’s negligence. The lawsuit seeks unspecified damages for Mountaineer Gas and its customers, who have experienced higher bills, interrupted service, and safety issues since the gas crisis began last December. The suit demands that American Water Works ($NYSE:AWK) take responsibility for the crisis and take corrective measures to prevent similar incidents in the future.
American Water Works is the largest publicly-traded water and wastewater utility holding company in the United States. The company is committed to providing customers with reliable service at fair prices, and strives to ensure that its services are safe, clean, and affordable.
Share Price
The lawsuit alleges that the water company failed to protect the public from the hazardous gas pipeline that had been installed in the area and had caused a significant disruption to life in the region. The filing of the lawsuit caused the stock of American Water Works to open at $132.9 and close at $131.4, down by 1.3% from the previous closing price of 133.1. This stock decline demonstrates the potential legal and financial damages that American Water Works may face due to the lawsuit. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWK. More…
| Total Revenues | Net Income | Net Margin |
| 4.13k | 920 | 21.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWK. More…
| Operations | Investing | Financing |
| 1.69k | -2.69k | 1.56k |
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 |
| 29.82k | 19.92k | 50.83 |
Key Ratios Snapshot
Some of the financial key ratios for AWK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.2% | 5.4% | 39.1% |
| FCF Margin | ROE | ROA |
| -22.7% | 10.3% | 3.4% |
Analysis – AWK Intrinsic Value Calculator
At GoodWhale, we analyzed American Water Works’s financials and found that the intrinsic value of the company’s shares is estimated to be around $152.8. This figure was calculated using our proprietary Valuation Line, which takes into account the company’s revenue, profitability, cash flows, and other essential factors. Currently the stock is being traded at a price of $131.4, making it a fair price, but still undervalued by 14%. This is an excellent opportunity for investors to take advantage of and benefit from this price discrepancy. More…
Peers
American Water Works Co Inc, American States Water Co, Global Water Resources Inc, and Artesian Resources Corp are all water utilities companies. They are all in the business of providing water and wastewater services to residential, commercial, and industrial customers.
– American States Water Co ($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
American Water Works (AWW) is a publicly traded utility holding company and the largest investor-owned U.S. water and wastewater services provider. Recently, AWW was sued by Mountaineer Gas over a gas crisis on Charleston’s West Side. Analysts believe that the lawsuit will have no material impact on the company’s performance due to its nature, as well as its size and scale. Long-term investors are still encouraged to invest in AWW given its consistent record of providing essential services, its growing dividend, and its ability to generate ongoing earnings growth.
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