AWK Stock Intrinsic Value – American Water Works Shares Rise Amidst Market Downturn
April 2, 2024
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As one of the largest water and wastewater utility companies in the country, American Water Works ($NYSE:AWK) has a strong presence in both the residential and commercial sectors. Despite a general decline in the stock market on Tuesday, the company’s shares managed to edge up by 0.60% to reach $117.84. This rise in share price amidst a market downturn can be attributed to a number of factors. One possible reason is the company’s strong financial performance in recent years. American Water Works has consistently reported strong earnings and revenue growth, which has instilled confidence in investors.
Additionally, the company has a stable and predictable business model, making it an attractive investment option during uncertain market conditions. Another factor contributing to the rise in American Water Works’ shares may be the increasing demand for water and wastewater services. With growing populations and increasing environmental concerns, the demand for clean and reliable water sources is on the rise. As a result, American Water Works is expected to continue experiencing steady growth in the coming years, which makes it an appealing choice for long-term investors. In addition to its strong financial performance and market demand, American Water Works has also demonstrated its commitment to sustainability and innovation. The company has invested in new technologies and infrastructure to improve efficiency and reduce its environmental impact. This focus on sustainability has not only gained positive attention from consumers, but also from investors who value socially responsible companies. Despite the overall market downturn, American Water Works has managed to stay resilient and continue its upward momentum. This can be seen as a testament to the company’s strong fundamentals and its ability to weather market fluctuations. As such, it is no surprise that American Water Works remains a top choice for investors looking for stability and growth potential in their portfolios.
Market Price
On Tuesday, amidst a significant market downturn, shares of AMERICAN WATER WORKS saw a rise in value. The stock opened at $117.0 and closed at $117.8, showing a 0.6% increase from the previous day’s closing price of $117.1. This increase in share price is a positive sign for the company, especially considering the overall downward trend in the market. It shows that investors have confidence in AMERICAN WATER WORKS and its ability to weather the current economic climate. One possible reason for the rise in share value could be the company’s strong financial performance. Another factor could be the company’s focus on providing essential services, such as water and wastewater treatment, which are in demand regardless of market conditions. This makes AMERICAN WATER WORKS a relatively stable investment option for investors during times of market volatility.
Additionally, AMERICAN WATER WORKS has a strong track record of returning value to shareholders through dividends and share buybacks. This could also be a contributing factor to the rise in its share price. Overall, despite the challenging market conditions, AMERICAN WATER WORKS has managed to maintain its stock value and even see a slight increase. This can be seen as a testament to the company’s resilience and its successful management of economic challenges. 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 |
| 4.23k | 944 | 22.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWK. More…
| Operations | Investing | Financing |
| 1.87k | -2.81k | 1.19k |
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 |
| 30.3k | 20.5k | 50.31 |
Key Ratios Snapshot
Some of the financial key ratios for AWK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.9% | 6.4% | 39.1% |
| FCF Margin | ROE | ROA |
| -20.3% | 10.5% | 3.4% |
Analysis – AWK Stock Intrinsic Value
Hello everyone, GoodWhale here. Today, I wanted to share with you my analysis of the financials for AMERICAN WATER WORKS. As a financial analyst, I have carefully examined the company’s financial data and have come up with some key points that I believe are important for investors to know. First and foremost, I must mention that after analyzing the financial performance of AMERICAN WATER WORKS, I have calculated its fair value to be around $153.3. This estimate is based on our proprietary Valuation Line, which takes into account various factors such as the company’s earnings, growth prospects, and industry trends. At the time of writing this analysis, AMERICAN WATER WORKS stock is being traded at $117.8. This means that the stock is currently undervalued by 23.1%. In other words, based on our valuation, investors have an opportunity to purchase AMERICAN WATER WORKS shares at a discounted price. To put it simply, our analysis suggests that AMERICAN WATER WORKS stock has room for growth and that it is currently trading below its fair value. This could be a good opportunity for investors who are looking to add a fundamentally sound company to their portfolio. In conclusion, as a financial analyst, I believe that AMERICAN WATER WORKS has strong financials and is currently undervalued in the market. However, it is always important for investors to do their own research and consider all factors before making investment decisions. Thank you for reading and happy investing! More…
Peers
American Water Works Co Inc, American States Water Co, Global Water Resources Inc, and Artesian Resources Corp are all water utilities companies. They are all in the business of providing water and wastewater services to residential, commercial, and industrial customers.
– American States Water Co ($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 Tuesday, shares of American Water Works Co. saw a slight increase of 0.60% to $117.84, amidst a negative trading day for the overall stock market. This could indicate that investors still have confidence in the company’s performance, despite the overall downturn in the market. However, without further analysis, it is difficult to determine the reasons behind this increase. It will be important to closely monitor the company’s financial reports and industry trends for a more comprehensive understanding of American Water Works’ future performance and potential investment opportunities.
