American Water Valuation
| AWK Stock | USD 141.13 0.68 0.48% |
At this time, the firm appears to be undervalued. American Water Works shows a prevailing Real Value of $162.79 per share. The current price of the firm is $141.13. Our model approximates the value of American Water Works from analyzing the firm fundamentals such as profit margin of 0.22 %, and Return On Equity of 0.1 as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that American Water's price fluctuation is very steady at this time. Calculation of the real value of American Water Works is based on 3 months time horizon. Increasing American Water's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
American Water's intrinsic value may or may not be the same as its current market price of 141.13, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 141.13 | Real 162.79 | Hype 141.13 | Naive 135.9 |
The intrinsic value of American Water's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Water's stock price.
Estimating the potential upside or downside of American Water Works helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Water more accurately as focusing exclusively on American Water's fundamentals will not take into account other important factors: American Water Total Value Analysis
American Water Works is presently anticipated to have company total value of 41.71 B with market capitalization of 27.65 B, debt of 14.11 B, and cash on hands of 85 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Water fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
41.71 B | 27.65 B | 14.11 B | 85 M |
American Water Investor Information
About 95.0% of the company shares are held by institutions such as insurance companies. The book value of American Water was presently reported as 53.01. The company recorded earning per share (EPS) of 5.39. American Water Works last dividend was issued on the 7th of February 2025. The entity had 2:1 split on the 26th of July 1996. Based on the analysis of American Water's profitability, liquidity, and operating efficiency, American Water Works is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.American Water Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Water has an asset utilization ratio of 14.27 percent. This suggests that the Company is making $0.14 for each dollar of assets. An increasing asset utilization means that American Water Works is more efficient with each dollar of assets it utilizes for everyday operations.American Water Ownership Allocation
American Water holds a total of 194.95 Million outstanding shares. The majority of American Water Works outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Water Works to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Water. Please pay attention to any change in the institutional holdings of American Water Works as this could imply that something significant has changed or is about to change at the company. Please note that on February 14, 2022, Senator Tommy Tuberville of US Senate acquired $15k to $50k worth of American Water Works's common stock.American Water Profitability Analysis
The company reported the last year's revenue of 4.68 B. Total Income to common stockholders was 1.05 B with profit before taxes, overhead, and interest of 2.83 B.American Water Past Distributions to stockholders
About American Water Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Water Works. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Water Works based exclusively on its fundamental and basic technical indicators. By analyzing American Water's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Water's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Water. We calculate exposure to American Water's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Water's related companies.American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under UtilitiesRegulated Water classification in the United States and is traded on New York Stock Exchange. It employs 6400 people.
A single share of American Water represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
American Water Dividends Analysis For Valuation
There are various types of dividends American Water can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Water Works directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Water by the value of the dividends paid out.
American Water Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Water does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 195 M | |
| Quarterly Earnings Growth Y O Y | 0.391 | |
| Forward Price Earnings | 24.7525 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.