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American Water Works Company, Inc.

AWK

Water Supply

Mkt Cap

$23.44B

PE

25.48

Debt

$12.19B

Cash

$661M

EV

$34.97B

FCF

-$788M

Market Cap

$23.44B

P/E Ratio

25.48

Debt

$12.19B

Cash

$661M

EV

$34.97B

FCF

-$788M
Charts data: {"Earnings":[{"time":"2014-12-30","value":422988000},{"time":"2015-12-30","value":476000000},{"time":"2016-12-30","value":468000000},{"time":"2017-12-30","value":426000000},{"time":"2018-12-30","value":565000000},{"time":"2019-12-30","value":621000000},{"time":"2020-12-30","value":709000000},{"time":"2021-12-30","value":1263000000},{"time":"2022-12-30","value":820000000}],"Sales":[{"time":"2014-12-30","value":3011328000},{"time":"2015-12-30","value":3159000000},{"time":"2016-12-30","value":3302000000},{"time":"2017-12-30","value":3357000000},{"time":"2018-12-30","value":3440000000},{"time":"2019-12-30","value":3610000000},{"time":"2020-12-30","value":3777000000},{"time":"2021-12-30","value":3930000000},{"time":"2022-12-30","value":3792000000}],"Net Margins":[{"time":"2014-12-30","value":0.14046560188727367},{"time":"2015-12-30","value":0.15068059512503956},{"time":"2016-12-30","value":0.14173228346456693},{"time":"2017-12-30","value":0.12689901697944594},{"time":"2018-12-30","value":0.16424418604651161},{"time":"2019-12-30","value":0.17202216066481996},{"time":"2020-12-30","value":0.18771511781837438},{"time":"2021-12-30","value":0.32137404580152673},{"time":"2022-12-30","value":0.21624472573839662}],"Assets":[{"time":"2014-12-30","value":16130956000},{"time":"2015-12-30","value":17241000000},{"time":"2016-12-30","value":18482000000},{"time":"2017-12-30","value":19482000000},{"time":"2018-12-30","value":21223000000},{"time":"2019-12-30","value":22682000000},{"time":"2020-12-30","value":24766000000},{"time":"2021-12-30","value":26075000000},{"time":"2022-12-30","value":27787000000}],"Stockholders Equity":[{"time":"2014-12-30","value":4915591000},{"time":"2015-12-30","value":5049000000},{"time":"2016-12-30","value":5218000000},{"time":"2017-12-30","value":5385000000},{"time":"2018-12-30","value":5864000000},{"time":"2019-12-30","value":6121000000},{"time":"2020-12-30","value":6454000000},{"time":"2021-12-30","value":7298000000},{"time":"2022-12-30","value":7693000000}],"ROE":[{"time":"2014-12-30","value":0.08605028367901235},{"time":"2015-12-30","value":0.09427609427609428},{"time":"2016-12-30","value":0.08968953622077425},{"time":"2017-12-30","value":0.07910863509749304},{"time":"2018-12-30","value":0.09635061391541609},{"time":"2019-12-30","value":0.10145401078255187},{"time":"2020-12-30","value":0.10985435388906105},{"time":"2021-12-30","value":0.17306111263359825},{"time":"2022-12-30","value":0.1065904068633823}],"ROA":[{"time":"2014-12-30","value":0.06253900884733676},{"time":"2015-12-30","value":0.062351371730178066},{"time":"2016-12-30","value":0.05843523428200411},{"time":"2017-12-30","value":0.06385381377681963},{"time":"2018-12-30","value":0.051924798567591766},{"time":"2019-12-30","value":0.05158275284366458},{"time":"2020-12-30","value":0.05039166599370104},{"time":"2021-12-30","value":0.06289549376797698},{"time":"2022-12-30","value":0.04581279015366898}]}

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,600 communities in 14 states serving approximately 3.4 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. It also provides water and wastewater services on various military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. In addition, the company operates approximately 80 surface water treatment plants; 490 groundwater treatment plants; 175 wastewater treatment plants; 53,500 miles of transmission, distribution, and collection mains and pipes; 1,100 groundwater wells; 1,700 water and wastewater pumping stations; 1,100 treated water storage facilities; and 73 dams. It serves approximately 14 million people with drinking water, wastewater, and other related services in 24 states. The company was founded in 1886 and is headquartered in Camden, New Jersey.

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In the chart Earnings are multiplied by this value.

Earnings Growth 12%
Earnings Stability 75%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin14%15%14%13%16%17%19%32%22%22%
ROA6.3%6.2%5.8%6.4%5.2%5.2%5%6.3%4.6%4.9%
ROE8.6%9.4%9%7.9%9.6%10%11%17%11%9.3%

What is the average Net Margin?

The average Net Margin over the past 5 years is +19.81%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.67%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.44%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.17%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.11%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.07%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-344.32-204.94515.27-43.10-34.97-27.70-34.11-10.44-15.47
Debt Equity1.211.301.371.441.471.551.701.511.611.23
MIN
Graham Stability---93%100%100%100%100%95%93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -15.47.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -74.12.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.93.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201512-201712-201912-2021Trend
Revenue2.6%2.5%1.7%-3.5%-0.59%
Net Income8.1%14%9.7%-35%1.3%
Stockholders Equity6.2%7.4%7.9%5.4%0.83%
FCF-----

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.47%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.59%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.99%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.34%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.39%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.83%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.