American Water Works Co. Stock Increases, But Trails Market Performance
December 24, 2023
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American Water Works ($NYSE:AWK) Co. stock experienced an increase on Thursday, however it still lagged behind the market’s performance. American Water Works Co. is a publicly traded water and wastewater utility holding company headquartered in Camden, New Jersey. It is the largest publicly traded U.S. water and wastewater utility company and the largest investor-owned water and wastewater company in the United States. American Water Works Co.’s mission is to provide safe, clean, affordable and reliable water and wastewater services for customers.
Share Price
American Water Works Co. (AWK) stock has increased, albeit at a rate that trails the broader market. On Friday, AWK opened at $132.2 and closed at $131.6. The company’s stock price has seen positive movement over the last few weeks, although it hasn’t kept up with the broader market’s performance. Investors should look for further developments to see if AWK can continue to pick up the pace and match the broader market’s performance. 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
At GoodWhale, we conducted a thorough study of the fundamentals of AMERICAN WATER WORKS. Our Star Chart analysis shows the company to be strong in asset, dividend, and profitability, and medium in growth. We also evaluated the company’s health score to be 5/10 in terms of cashflows and debt, indicating that it is likely to survive any crisis without the risk of bankruptcy. We have classified AMERICAN WATER WORKS as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given its fundamentals, AMERICAN WATER WORKS may be an interesting option for investors looking for a reliable stock with low risk and moderate growth potential. Investors looking for steady dividend income from a reliable utility stock may also find AMERICAN WATER WORKS to be a good choice. 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) saw its stock climb on Thursday despite a generally down day in the markets.
However, despite the gains, the stock still underperformed the broader market. This could be an indication that investors are still wary of American Water Works, as the company continues to face uncertainty in the sector. Analysts suggest that AWK’s overall performance is likely to remain sluggish in the near-term, with some recommending a hold or wait-and-see approach before investing. The company has seen profits decline in recent months due to a variety of economic issues, and investors may be concerned that its current course may not be sustainable.
In addition, American Water Works is facing increasing competition from both traditional and non-traditional sources, adding to the volatility of its stock. For the time being, most analysts suggest that investors should approach the stock with caution and monitor the situation for any potential improvements before investing.
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