AWK Stock Intrinsic Value – American Water Works Presents Investors with Promising Growth and Value Potential
January 6, 2024
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The company has a long history of success, and now presents investors with an attractive opportunity for growth and value. With a reasonable valuation compared to other utilities, American Water Works ($NYSE:AWK) is an attractive investment for those looking to benefit from the growth potential of this well-established company. American Water Works has consistently delivered strong financial results, with year-over-year growth in revenue, earnings, and dividends. The company has also invested in its infrastructure, modernizing its systems and providing customers with reliable services. These investments have resulted in increased customer satisfaction and customer loyalty, which provides a solid foundation for future growth.
American Water Works is well-positioned to take advantage of new opportunities as they arise. With its expansive network and strong balance sheet, the company is well-equipped to acquire new customers and expand its existing services. Its long and successful history combined with its reasonable valuation make it an attractive investment opportunity. With its robust infrastructure and customer loyalty, the company is well-positioned to take advantage of future opportunities and provide investors with exceptional returns.
Share Price
On Friday, the stock opened at $131.4 and closed at $131.9, up by 0.1% from the last closing price of 131.8. This slight increase in the stock price is indicative of the potential growth and value that AWW can offer investors. This attractive dividend yield, along with its steady growth and value potential, make American Water Works an attractive investment for those looking to diversify their portfolios and generate income. 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 Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of AMERICAN WATER WORKS’ financials, and have concluded that the fair value of AMERICAN WATER WORKS’ share is around $152.1. This number was calculated using our proprietary Valuation Line. Despite this fair price, the stock is currently being traded at $131.9. This amounts to a 13.3% undervaluation which presents a great investment opportunity. More…
Peers
American Water Works Co Inc, American States Water Co, Global Water Resources Inc, and Artesian Resources Corp are all water utilities companies. They are all in the business of providing water and wastewater services to residential, commercial, and industrial customers.
– American States Water Co ($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 an attractive growth investment opportunity for investors. The company is an industry leader in the water and wastewater industry and has seen consistent revenue and earnings growth for many years.
In addition, the stock has a reasonable valuation with a P/E ratio lower than the average of its peers. Furthermore, the company has made significant investments in technology, infrastructure, and services, providing strong competitive advantages in the market. With these attractive fundamentals, AWK is an attractive investment for those looking for growth in a low-risk and stable sector.
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