AWK Stock Fair Value – West Virginia American Water to Buy Milton’s Water System

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AWK Stock Fair Value – West Virginia American ($NYSE:AWK) Water has recently proposed to purchase Milton’s water system, a move that could greatly benefit the community. In addition to providing water services, they are also active in the areas of conservation and sustainability, with a commitment to protecting the environment and natural resources. The purchase of Milton’s water system would be a great opportunity for the citizens of Milton. Not only would they benefit from the safety and reliability of a clean water source, but they would also be able to enjoy the convenience of having access to one of the most advanced water systems in the country.

The purchase of Milton’s water system by West Virginia American Water would be a win-win situation for both parties. The residents of Milton would get access to a reliable water system, while West Virginia American Water would be able to expand their service area and increase their customer base. Overall, this proposal could prove to be beneficial for both West Virginia American Water and Milton’s citizens. The citizens of Milton would have access to safe and reliable drinking water, while West Virginia American Water would be able to expand their customer base and increase their profits.

Market Price

On Thursday, West Virginia American Water announced that they would be purchasing the water system in the town of Milton, West Virginia. This move signals the company’s continued commitment to providing quality water services to their customers. With the acquisition of Milton’s system, American Water Works expands its reach and position as a leading provider of water services to communities across the United States. The purchase agreement includes the acquisition of all assets related to the water system, as well as the necessary permits and licenses. American Water Works will be responsible for all costs associated with the transaction, including any necessary repairs or upgrades to the system.

This move allows them to provide Milton customers with reliable, high-quality water services at a lower cost than they would have faced under the previous ownership. American Water Works stock opened at $151.4 and closed at $149.1 on Thursday, down by 1.1% from their last closing price of 150.7. The purchase agreement is still subject to regulatory approval, and should the purchase be approved, American Water Works will be able to begin providing services to Milton customers soon. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Analysis – AWK Stock Fair Value

American Water Works (AWW) is a publicly-traded water and wastewater utility holding company, providing water and wastewater services in parts of the United States and Canada. GoodWhale conducted a financial analysis of the company, and determined that its intrinsic value is approximately $172.1, based on its proprietary Valuation Line. The analysis shows that, as of this writing, the market price of $149.1 per share is a fair price, although it undervalues AWW by 13.4%. GoodWhale’s Valuation Line takes into account several factors in determining the intrinsic value of a stock, including the value of AWW’s assets, current and future cash flows, and potential growth opportunities. GoodWhale considers a stock undervalued when its intrinsic value is greater than its market price, and vice versa. Given its consistent revenue growth, healthy balance sheet, and attractive dividend yield, GoodWhale believes that AWW is a well-managed company with attractive investment prospects. While its current market price is already favorable to investors, those who are able to purchase shares at this price could gain an even larger return if the stock reaches its intrinsic value of $172.1. 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 (AWK) is a publicly traded water and wastewater utility company. Recently, the company announced its intention to purchase the Milton Water System in West Virginia, a move that could boost the company’s investments and extend its reach as a leader in the industry. The purchase is seen as a successful long-term investment for American Water and likely improve the overall value of its stock.