American Water (Germany) Performance
| AWC Stock | EUR 119.50 1.35 1.12% |
The firm shows a Beta (market volatility) of -0.14, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning American Water are expected to decrease at a much lower rate. During the bear market, American Water is likely to outperform the market. At this point, American Water Works has a negative expected return of -0.13%. Please make sure to confirm American Water's mean deviation, standard deviation, total risk alpha, as well as the relationship between the coefficient of variation and jensen alpha , to decide if American Water Works performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days American Water Works has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders. ...more
| Begin Period Cash Flow | 136 M |
American |
American Water Relative Risk vs. Return Landscape
If you would invest 13,033 in American Water Works on October 1, 2024 and sell it today you would lose (1,083) from holding American Water Works or give up 8.31% of portfolio value over 90 days. American Water Works is currently producing negative expected returns and takes up 1.6259% volatility of returns over 90 trading days. Put another way, 14% of traded stocks are less volatile than American, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
American Water Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Water's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as American Water Works, and traders can use it to determine the average amount a American Water's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.078
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| Negative Returns | AWC |
Estimated Market Risk
| 1.63 actual daily | 14 86% of assets are more volatile |
Expected Return
| -0.13 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.08 actual daily | 0 Most of other assets perform better |
Based on monthly moving average American Water is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Water by adding American Water to a well-diversified portfolio.
American Water Fundamentals Growth
American Stock prices reflect investors' perceptions of the future prospects and financial health of American Water, and American Water fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Stock performance.
| Return On Equity | 0.11 | |||
| Return On Asset | 0.0313 | |||
| Profit Margin | 0.22 % | |||
| Operating Margin | 0.36 % | |||
| Shares Outstanding | 181.86 M | |||
| Price To Earning | 30.00 X | |||
| Revenue | 3.79 B | |||
| EBITDA | 2.09 B | |||
| Cash And Equivalents | 133 M | |||
| Cash Per Share | 0.74 X | |||
| Total Debt | 10.93 B | |||
| Debt To Equity | 147.00 % | |||
| Book Value Per Share | 42.30 X | |||
| Cash Flow From Operations | 1.11 B | |||
| Earnings Per Share | 4.25 X | |||
| Total Asset | 27.79 B | |||
About American Water Performance
By analyzing American Water's fundamental ratios, stakeholders can gain valuable insights into American Water's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if American Water has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if American Water has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. The company was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under Utilities - Regulated Water classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7100 people.Things to note about American Water Works performance evaluation
Checking the ongoing alerts about American Water for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for American Water Works help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| American Water Works generated a negative expected return over the last 90 days | |
| American Water Works has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| American Water Works has accumulated 10.93 B in total debt with debt to equity ratio (D/E) of 147.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. American Water Works has a current ratio of 0.36, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist American Water until it has trouble settling it off, either with new capital or with free cash flow. So, American Water's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like American Water Works sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for American to invest in growth at high rates of return. When we think about American Water's use of debt, we should always consider it together with cash and equity. | |
| Over 90.0% of American Water shares are held by institutions such as insurance companies |
- Analyzing American Water's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Water's stock is overvalued or undervalued compared to its peers.
- Examining American Water's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating American Water's management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Water's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of American Water's stock. These opinions can provide insight into American Water's potential for growth and whether the stock is currently undervalued or overvalued.
Complementary Tools for American Stock analysis
When running American Water's price analysis, check to measure American Water's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Water is operating at the current time. Most of American Water's value examination focuses on studying past and present price action to predict the probability of American Water's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Water's price. Additionally, you may evaluate how the addition of American Water to your portfolios can decrease your overall portfolio volatility.
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