American Water Works (AWK) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
American Water Works stock (AWK) is currently trading at $134.59. American Water Works PE ratio is 23.48. American Water Works PS ratio (Price-to-Sales) is 5.07. Analyst consensus price target for AWK is $137.70. WallStSmart rates AWK as Hold.
- AWK PE ratio analysis and historical PE chart
- AWK PS ratio (Price-to-Sales) history and trend
- AWK intrinsic value — DCF, Graham Number, EPV models
- AWK stock price prediction 2025 2026 2027 2028 2029 2030
- AWK fair value vs current price
- AWK insider transactions and insider buying
- Is AWK undervalued or overvalued?
- American Water Works financial analysis — revenue, earnings, cash flow
- AWK Piotroski F-Score and Altman Z-Score
- AWK analyst price target and Smart Rating
American Water Works
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AWK Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · American Water Works (AWK)
AWK trades 220% above its Graham fair value of $38.69, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
American Water Works (AWK) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Fundamentals are solid but monitor weak areas for improvement.
American Water Works (AWK) Key Strengths (4)
Keeps $32 of every $100 in revenue after operating costs
Keeps $22 of every $100 in revenue as net profit
99.47% of shares held by major funds and institutions
Large-cap company with substantial market presence
American Water Works (AWK) Areas to Watch (5)
Paying a premium for growth, expensive relative to earnings expansion
Premium valuation at 5.1x annual revenue
Modest revenue growth at 5.80%
Moderate profitability with room for improvement
Fairly priced relative to book value
Supporting Valuation Data
American Water Works (AWK) Detailed Analysis Report
Overall Assessment
This company scores 60/100 in our Smart Analysis, earning a C grade. Out of 9 metrics analyzed, 4 register as strengths (avg 9.8/10) while 5 fall into concern territory (avg 4.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. Profitability is solid with Operating Margin at 32.20%, Profit Margin at 21.60%.
The Bear Case
The primary concerns are PEG Ratio, Price/Sales, Revenue Growth. Some valuation metrics including PEG Ratio (2.45), Price/Sales (5.07), Price/Book (2.44) suggest expensive pricing. Growth concerns include Revenue Growth at 5.80%, which may limit upside. Profitability pressure is visible in Return on Equity at 10.50%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 10.50% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 5.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (PEG Ratio, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AWK Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AWK's Price-to-Sales ratio of 5.07x trades at a 18% premium to its historical average of 4.3x (60th percentile). The current valuation is 42% below its historical high of 8.75x set in Dec 2021, and 337% above its historical low of 1.16x in May 2009. Over the past 12 months, the PS ratio has compressed from ~6.1x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for American Water Works (AWK) · UTILITIES › UTILITIES - REGULATED WATER
The Big Picture
American Water Works is a mature, profitable business with steady cash generation. Revenue reached 5.1B with 6% growth year-over-year. Profit margins are strong at 21.6%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 21.6% and operating margin of 32.2% demonstrate strong pricing power and operational efficiency.
Free cash flow is -385M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Sector dynamics: monitor UTILITIES - REGULATED WATER industry trends, competitive moves, and regulatory changes that could impact American Water Works.
Bottom Line
American Water Works is a well-established business delivering consistent profitability with 21.6% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(26 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 10:04:23 AM
About American Water Works(AWK)
NYSE
UTILITIES
UTILITIES - REGULATED WATER
USA
American Water is an American public utility company operating in the United States and Canada.