American Water Works Stock Analysis, Valuation (NYSE:AWK)

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$89.49 $0.53 (0.6%) AWK stock closing price Aug 17, 2018 (Closing)

View the American Water Works stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for AWK stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

American Water Works Company Inc Stock Rating 2.8/5

Amigobulls AWK stock analysis relies on business fundamentals such as American Water Works revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare American Water Works valuation with its sector peers to gauge relative attractiveness of AWK stock. American Water Works stock rating is our opinion about the business fundamentals of the company.

Should you buy AWK stock?

  • American Water Works had a healthy average operating margin of 36.43 over the last 4 quarters.
  • Net margins came in at average 13.9% for American Water Works over the last twelve months.
  • The company has an operating cash flow which is 1.8889 times the net income. We see this as a positive signal.

Should you sell AWK stock?

  • AWK stock is trading at a PE ratio of 28.1, which is worse than the sector average multiple of 20.
  • AWK stock is trading at a PS multiple of 4.8, which is a negative when compared to the Utilities sector average multiple of 2.1.
  • American Water Works has a negative FCF (Free Cash Flow) margin of -8.

Comments on this video and American Water Works stock

Investors can use Amigobulls American Water Works stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

American Water Works revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of AWK technical analysis to check whether the fundamental story is reflected in the market sentiment.