American Water Works Company, Inc. Website

American Water Works Company, Inc.

NYSE-AWK

Company Overview

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 1,700 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; 480 groundwater treatment plants; 160 wastewater treatment plants; 52,500 miles of transmission, distribution, and collection mains and pipes; 1,100 groundwater wells; 1,700 water and wastewater pumping stations; 1,300 treated water storage facilities; and 76 dams. It serves approximately 14 million people with drinking water, wastewater, and other related services in 24 states. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey.

  • Name

    American Water Works Company, Inc.

  • CEO

    John C. Griffith

  • Website

    www.amwater.com

  • Sector

    Water Utilities

  • Year Founded

    1886

Company Statistics

Profile

  • Market Cap

    —

  • EV

    —

  • Shares Out

    —

  • Revenue

    —

  • Employees

    —

Margins

  • Gross

    —

  • EBITDA

    —

  • Operating

    —

  • Pre-Tax

    —

  • Net

    —

  • FCF

    —

Returns (5Yr Avg)

  • ROA

    —

  • ROTA

    —

  • ROE

    —

  • ROCE

    —

  • ROIC

    —

Valuation (TTM)

  • P/E

    —

  • P/B

    —

  • EV/Sales

    —

  • EV/EBITDA

    —

  • P/FCF

    —

  • EV/Gross Profit

    —

Valuation (NTM)

  • Price Target

    —

  • P/E

    —

  • PEG

    —

  • EV/Sales

    —

  • EV/EBITDA

    —

  • P/FCF

    —

Financial Health

  • Cash

    —

  • Net Debt

    —

  • Debt/Equity

    —

  • EBIT/Interest

    —

Growth (CAGR)

  • Rev 3Yr

    —

  • Rev 5Yr

    —

  • Rev 10Yr

    —

  • Dil EPS 3Yr

    —

  • Dil EPS 5Yr

    —

  • Dil EPS 10Yr

    —

  • Rev Fwd 2Yr

    —

  • EBITDA Fwd 2Yr

    —

  • EPS Fwd 2Yr

    —

  • EPS LT Growth Est

    —

Dividends

  • Yield

    —

  • Payout

    —

  • DPS

    —

  • DPS Growth 3Yr

    —

  • DPS Growth 5Yr

    —

  • DPS Growth 10Yr

    —

  • DPS Growth Fwd 2Yr

    —

Bulls Say

  • The company operates in constructive regulatory environments that support recovery of prudent costs and support growth investments.

  • American Water Works' size should be an advantage in pursuing new customers and acquisitions in the coming years. Tuck-ins to existing systems are a cheap source of growth.

  • Much of America's water infrastructure is old and will require significant investment over the coming decades, allowing the company to increase its rate base and earnings for many years to come.

Bears Say

  • American Water Works' sizable plans for infrastructure replacement and upgrades could run into some pushback from rising rates for water that has traditionally been cheap.

  • Conservation is biting into weather-adjusted usage across the company's territories, requiring higher rates to maintain returns.

  • Acquisitions of regulated utilities can be difficult and time-consuming and sometimes end in failure.

Source: Morningstar Analysis - Oct 27, 2025

What's happening

Nov 8, 2025 - Dec 10, 2025

American Water Works Faces Challenges Amid Infrastructure Scrutiny and Community Initiatives

  • AWK's California subsidiary is under scrutiny following a report that downgraded the state's drinking water infrastructure grade.
  • The company has launched community engagement initiatives to address food insecurity while expanding service capabilities in Iowa.
  • Despite operational challenges, AWK outperformed the Utilities sector but lagged behind broader market trends.

Over the past month, American Water Works Company Inc. (AWK) experienced a decline of 1.8%. This performance was notably below that of the S&P 500, which returned 1.9%, resulting in an underperformance gap of 3.7%. The company's struggles were largely attributed to significant issues impacting its stock during this period.

A key factor contributing to AWK's bearish sentiment was heightened scrutiny surrounding its California subsidiary after alarming findings from the American Society of Civil Engineers' (ASCE). The ASCE report downgraded California’s drinking water infrastructure grade from C to D+, highlighting critical challenges such as aging pipes and climate resilience concerns. This situation prompted calls for increased investment in water systems across various states, including Missouri and New Jersey, where New Jersey American Water issued a mandatory conservation notice due to drought conditions.

Despite these setbacks, there were some positive developments within AWK’s operations aimed at fostering community support and enhancing service capabilities. The company announced partnerships focused on combating food insecurity through grants with local organizations like the Benito Juarez Foundation and Madera County Food Bank. Additionally, Iowa American Water successfully acquired new systems from Low Moor City, promising over $1 million in infrastructure improvements over five years.

However, these positive actions did not fully mitigate negative market reactions tied closely to operational challenges facing the company. Investors reacted cautiously towards announcements regarding freezing temperatures affecting plumbing systems and potential legal investigations related to proposed mergers with Essential Utilities.

Ultimately, while AWK outperformed the Utilities sector (XLU) by 50.6%, it still struggled against broader market trends represented by an S&P increase of 1.9%.

NYSE:AWK