Utilities · Water Utilities · US stock · price as of 16 Oct 2026
Key indicators
Price
$134.94
52-week range
$118.82 – $142.37
Market cap
$26.4B
P/E (trailing)
23.4×
EV / EBITDA
14.6×
Free-cash-flow yield
−3.9%
Dividend yield
2.6%
Revenue (last 12 months)
$5.3B
Revenue growth (3y a year)
10.8%
Operating margin
37.0%
Return on invested capital
5.6%
Net debt / EBITDA
5.5×
Fair value
Blended fair value$120.78 range $106 – $138
Versus priceFair−11% to fair value
Peer multiples
$133.52
Fundamentals-adjusted multiple
$130.96
10-year DCF (market-scaled)
$97.88
Earnings power value (floor, not blended)
$38.83
Model uncertainty
Medium
X-Ray Score
63/ 100 · Medium confidence · ahead of 81% of sector peers
Valuation51
Growth76
Profitability69
Financial health58
Dividends59
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
American Water Works is the largest publicly traded water and wastewater utility in the United States by customer count. It supplies drinking water and collects and treats wastewater for households, businesses and municipalities in many states, and it also operates contracts on military bases. Revenue comes mainly from regulated rates approved by state commissions, which allow recovery of costs and a return on large investments in pipes and treatment plants.
Revenue over the last twelve months was $5.3 billion, with growth of 10.8% a year over three years. The operating margin stands at 37.0%. The return on invested capital is shown as 6%. Net debt to EBITDA is 5.5 times. Shareholders receive a dividend yielding 2.6%. These numbers describe past results and current financial position, and they are shown for reference only.
StocksXray gives American Water Works Company, Inc. an X-Ray Score of 63 out of 100 (medium confidence), ahead of 81% of the S&P 500 stocks in its sector. Its strongest lens is growth (76) and its weakest is valuation (51).
Our fair value blend is $120.78 (range $106.21 to $138.47). At $134.94 the stock trades 12% above that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
American Water Works Company, Inc. (AWK)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$170.17
$139.73
$123.40
$119.04
$127.85
$134.94
Market cap
$31.0B
$25.4B
$23.8B
$23.2B
$24.9B
$26.4B
P/E
24.5×
31.0×
25.2×
22.1×
22.5×
23.4×
EV / revenue
10.7×
10.0×
8.5×
8.0×
7.9×
8.0×
EV / EBITDA
22.8×
19.6×
16.2×
14.8×
14.7×
14.6×
Price / free cash flow
–
–
–
–
–
–
Free-cash-flow yield
−1.0%
−4.7%
−2.9%
−3.5%
−4.3%
−3.9%
Price / book
4.2×
3.3×
2.4×
2.2×
2.3×
2.3×
Dividend yield
1.42%
1.88%
2.29%
2.57%
2.59%
2.55%
Fundamentals checklist ● 5 Good · ● 8 Average · ● 1 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−3.3%Average
Free-cash-flow yield−3.9%Average
Risk models
Altman Z score0.8×Average
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)8.1%Average
Revenue growth (3y)10.8%Good
Growth consistency100%Good
Balance sheet
Current ratio0.5×Bad
Net debt / EBITDA5.5×Good
Interest cover3.0×Good
Valuation
Fair value vs price0.9×Average
EBIT / EV yield4.6%Average
Profitability
Return on invested capital5.6%Average
Operating margin37.0%Good
XStocksXray
American Water Works Company, Inc. (AWK)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
3,914
3,763
4,217
4,653
5,121
5,273
Gross profit
–
–
–
–
–
–
Operating income
1,196
1,273
1,504
1,718
1,879
1,952
Net income
1,263
820
944
1,051
1,111
1,128
Diluted EPS ($)
6.95
4.51
4.90
5.39
5.69
5.78
Free cash flow
-323
-1,189
-701
-811
-1,067
-1,030
Gross margin
–
–
–
–
–
–
Operating margin
30.6%
33.8%
35.7%
36.9%
36.7%
37.0%
Net margin
32.3%
21.8%
22.4%
22.6%
21.7%
21.4%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
26,075
27,787
30,298
32,830
35,442
36,453
Cash
116
85
330
96
98
191
Total debt
10,982
12,382
12,369
14,034
15,844
15,988
Equity
7,298
7,693
9,797
10,332
10,837
11,665
Dividend per share ($)
2.41
2.62
2.83
3.06
3.31
–
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026
Jun 2026
Revenue ($M)
1,134
1,272
1,454
1,266
1,203
1,350
Growth vs a year earlier
+13.1%
+11.6%
+9.5%
+7.5%
+6.1%
+6.1%
Net income ($M)
205
289
379
238
196
315
Diluted EPS ($)
1.05
1.48
1.94
–
1.00
1.61
XStocksXray
American Water Works Company, Inc. (AWK)
Peers in Water Utilities
Company
X-Ray
AWK · American Water Works Compa...
63
Market Compass outlook for Utilities: Unfavourable (31/100). It blends regime history, macro sensitivity, momentum and valuation.
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.