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Upturn AI SWOT - About
AWK 
American Water Works (AWK)
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Upturn Advisory Summary
04/01/2025: AWK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -3.26% | Avg. Invested days 39 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.67B USD | Price to earnings Ratio 27.32 | 1Y Target Price 138.28 |
Price to earnings Ratio 27.32 | 1Y Target Price 138.28 | ||
Volume (30-day avg) 1717439 | Beta 0.68 | 52 Weeks Range 110.78 - 152.07 | Updated Date 04/2/2025 |
52 Weeks Range 110.78 - 152.07 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 2.07% | Basic EPS (TTM) 5.38 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.44% | Operating Margin (TTM) 33.72% |
Management Effectiveness
Return on Assets (TTM) 3.46% | Return on Equity (TTM) 10.44% |
Valuation
Trailing PE 27.32 | Forward PE 25.71 | Enterprise Value 42782014606 | Price to Sales(TTM) 6.12 |
Enterprise Value 42782014606 | Price to Sales(TTM) 6.12 | ||
Enterprise Value to Revenue 9.13 | Enterprise Value to EBITDA 16.02 | Shares Outstanding 195011008 | Shares Floating 194534025 |
Shares Outstanding 195011008 | Shares Floating 194534025 | ||
Percent Insiders 0.13 | Percent Institutions 95 |
Analyst Ratings
Rating 3.13 | Target Price 140.69 | Buy 1 | Strong Buy 3 |
Buy 1 | Strong Buy 3 | ||
Hold 8 | Sell 1 | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
American Water Works
Company Overview
History and Background
American Water Works was founded in 1886. Initially providing water services to a single community, it has grown to become the largest publicly traded water and wastewater utility company in the U.S.
Core Business Areas
- Regulated Businesses: Provides water and wastewater services to residential, commercial, and industrial customers in approximately 14 states.
- Market-Based Businesses: Offers a range of water and wastewater solutions to municipalities, the military, and other industrial clients across the United States.
Leadership and Structure
The CEO is Susan N. Story (as of late 2023, subject to change). The company operates with a decentralized structure, with regional presidents overseeing operations in various states.
Top Products and Market Share
Key Offerings
- Market Share: 25
- Residential Water Services: Provides clean water and wastewater services to millions of residential customers. Estimated market share is difficult to isolate due to the fragmented nature of the water utility industry, but American Water is the largest player. Competitors include Aqua America (now Essential Utilities), and local municipal water systems. No direct revenue information is publicly available for specific service offerings, as these are bundled within overall segment revenue.
- Commercial Water Services: Provides water and wastewater services to commercial and industrial customers. Estimated market share is difficult to isolate due to the fragmented nature of the water utility industry, but American Water is the largest player. Competitors include Aqua America (now Essential Utilities), and local municipal water systems. No direct revenue information is publicly available for specific service offerings, as these are bundled within overall segment revenue.
- Market Share: 25
- Market Share: 25
- Wastewater Treatment: Operates and manages wastewater treatment facilities for municipalities and other clients. Estimated market share is difficult to isolate due to the fragmented nature of the water utility industry, but American Water is the largest player. Competitors include Veolia, Suez, and local municipal systems. No direct revenue information is publicly available for specific service offerings, as these are bundled within overall segment revenue.
Market Dynamics
Industry Overview
The water and wastewater utility industry is characterized by stable demand, high barriers to entry (due to regulatory requirements and capital intensity), and increasing focus on infrastructure upgrades and environmental compliance.
Positioning
American Water Works is a leader in the U.S. water utility industry, benefiting from its size, geographic diversification, and operational expertise. It has a competitive advantage in acquiring and managing smaller water systems.
Total Addressable Market (TAM)
The TAM for water utilities in the US is estimated to be in the hundreds of billions of dollars, considering infrastructure replacement needs and growing demand. American Water is positioned well to capture market share through acquisitions and organic growth.
Upturn SWOT Analysis
Strengths
- Scale and Geographic Diversification
- Operational Efficiency
- Strong Regulatory Relationships
- Experienced Management Team
- Access to Capital
Weaknesses
- High Capital Expenditure Requirements
- Exposure to Regulatory Risks
- Dependence on Rate Case Approvals
- Susceptibility to Weather-Related Events
- Debt Levels
Opportunities
- Acquisition of Smaller Water Systems
- Infrastructure Upgrades
- Expansion into New Geographic Areas
- Adoption of New Technologies
- Growth in Market-Based Businesses
Threats
- Changes in Regulatory Policies
- Increased Competition
- Rising Interest Rates
- Water Scarcity and Drought
- Environmental Litigation
Competitors and Market Share
Key Competitors
- WTRG
- ESNT
- SUEZ
Competitive Landscape
American Water Works has a significant competitive advantage due to its size, geographic diversification, and operational expertise. Competitors tend to be smaller and more regionally focused.
Major Acquisitions
York Water Company
- Year: 2023
- Acquisition Price (USD millions): 593
- Strategic Rationale: Expands service territory and strengthens presence in Pennsylvania. York Water is the oldest investor-owned utility in the US, dating back to 1816.
Growth Trajectory and Initiatives
Historical Growth: American Water Works has grown steadily through a combination of organic growth and acquisitions. Rate base has increased consistently, driven by capital investments in infrastructure.
Future Projections: Analysts project continued growth for American Water Works, driven by increasing demand for water services and ongoing infrastructure investments. Revenue is expected to grow at a mid-single-digit rate annually.
Recent Initiatives: Recent strategic initiatives include expanding the company's market-based businesses and investing in new technologies to improve operational efficiency and water quality.
Summary
American Water Works is a strong player in the U.S. water utility industry, benefiting from its scale and diversified operations. The company has a track record of consistent growth and shareholder returns, driven by strategic acquisitions and infrastructure investments. While regulatory risks and capital expenditure requirements remain challenges, American Water Works is well-positioned to capitalize on the increasing demand for water services and the need for infrastructure upgrades. Monitoring regulatory shifts and managing debt levels will be crucial for sustained success.
Similar Companies
ESNT
Essent Group Ltd
ESNT
Essent Group Ltd
MSEX
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MSEX
Middlesex Water Company
WTRG
Essential Utilities Inc
WTRG
Essential Utilities Inc
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It is not financial advice, and readers should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About American Water Works
Exchange NYSE | Headquaters Camden, NJ, United States | ||
IPO Launch date 2008-04-23 | CEO - | ||
Sector Utilities | Industry Utilities - Regulated Water | Full time employees 6700 | Website https://www.amwater.com |
Full time employees 6700 | Website https://www.amwater.com | ||
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. The company also operates approximately 80 surface water treatment plants; 520 groundwater treatment plants; 190 wastewater treatment plants; 54,500 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,800 water and wastewater pumping stations; 1,100 treated water storage facilities; and 75 dams. In addition, it offers water and wastewater services to 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey.
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