Over the last year, American Water Works Company logged a negative performance of -6.9%, with a high of $173.87 and a low of $122.77. During this time, the stock outpaced the S&P 500 index by 9.7%. As of January 2023, the company's 50-day average price was $149.57. American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. Based in Camden, NJ, the large-cap Utilities company has 6,400 full time employees. American Water Works Company has provided a 1.0% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $3,610 | $3,777 | $3,930 |
| Revenue Growth | n/a | 4.63% | 4.05% |
| Gross Margins | 57.2% | 57.1% | 54.8% |
| Gross Margins Growth | n/a | -0.17% | -4.03% |
| Operating Margins | 33.4% | 33.0% | 30.4% |
| Operating Margins Growth | n/a | -1.2% | -7.88% |
| Earnings Per Share | $3.43 | $3.91 | $6.95 |
| EPS Growth | n/a | 13.99% | 77.75% |
| Free Cash Flow (MM) | -$375 | -$502 | -$432 |
| FCF Growth | n/a | -33.87% | 13.94% |
| Capital Expenditures (MM) | -$1,758 | -$1,928 | -$1,873 |
| Net Debt / EBITDA | 5.15 | 5.61 | 5.62 |
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
American Water Works Company has a trailing twelve month P/E ratio of 22.0, compared to an average of 26.37 for the Utilities sector. Based on its EPS guidance of 4.78, the company has a forward P/E ratio of 33.3. The company's PEG ratio is 4.19, which suggests that it is overpriced relative to its expected rate of earnings growth.
American Water Works Company is likely overvalued compared to its net tangible assets, since its P/B ratio of 3.7 is higher than the sector average of 1.47. The company's shares are currently 135.6% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and assets.
There's an Analyst Consensus of Some Upside Potential for American Water Works Company:
There are 10 analysts covering American Water Works Company, with target prices ranging from $134 to $186 per share, for an average of $160.3. As of January 2023, the company is trading -0.63% away from its average target price, implying there is an analyst consensus of some upside potential. The average rating for American Water Works Company is buy.
With a 2.2% short interest, American Water Works Company has an average amount of shares sold short. Institutions own 88.9% of the company's shares, and it has a small amount of insider investors because 0.2% are owned by corporate insiders. Overall, the company's top shareholder is the Vanguard Group, Inc., whose 12% stake in the company is worth around $3,582,286,198.
