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American Water Works Company, Inc.
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 70 Forming View all →
$26.4B
Market Cap
22.9
P/E
2.96
PEG
5.4%
ROCE
9.1%
ROE
1.16
D/E
36.6%
OPM
-2.8%
% from 52W High
51
α RS
🔍 AWK is showing a high-conviction setup because it matches 4 of 37 tracked screener presets, Sector RRG has Utilities in the Improving quadrant with the trail still rolling over, and it's within 2.8% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RRG 52W High
Sources
Conviction 4/37 · Utilities in Improving quadrant · 2.8% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for AWK including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding AWK
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 301.2K $41.0M 0.05% Mar 2026
Jim Simons Renaissance Technologies LLC 68.3K $9.3M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q2 2026
Adjusted EPS (Q2)
$1.61
+8.1% YoY
Adjusted EPS (H1)
$2.62
+4.4% YoY
Regulated Net Income (Q2)
$331M
+14.9% YoY
Capital Invested (H1)
$1.8B
On track for $3.7B 2026 plan
What Went Right
  • Q2 adjusted EPS of $1.61 grew roughly 8% YoY and H1 EPS reached $2.62, keeping the company on track for full-year guidance.
  • Closed the Nexus Water acquisition ahead of schedule on June 1, adding 47,000 customer connections, with ~57,000 total connections under agreement at quarter-end.
  • Completed three 2026 rate cases (WV, MD, PA) with nearly 100% recovery of capital investments; PA order approved a $75M annualized increase.
What to Watch
  • Pennsylvania rate case awarded $75M versus the $160M requested, with a 9.55% ROE and 54.2% equity component.
  • Essential Utilities merger still needs multiple state approvals — only three states have approved so far, although Texas reached a settlement in principle.
  • Debt-to-capital stood at 58% at June 30; financing costs are increasing as expected and remaining equity forwards are slated to settle in Q4.
Management Guidance
  • 2026 adjusted EPS guidance affirmed at $6.02–$6.12, representing ~8% EPS growth.
  • Long-term EPS and dividend growth targets of 7%-9% through 2030 and beyond affirmed.
  • Majority of 2026 EPS growth expected in H2, with key state rate revenues effective later in Q3.
Investor Lens
The thesis is intact and arguably stronger after this call. The company delivered 8% EPS growth, reaffirmed guidance, completed constructive rate cases, and closed a major acquisition ahead of schedule. Pennsylvania came in below the requested amount, but management is exploring DSIC expansion to reduce regulatory lag. With merger progress and a $3.7B capex plan on track, the 7-9% long-term EPS and dividend growth outlook remains well supported.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid Q2: adjusted EPS $1.61, up 8% YoY; guidance affirmed.
Revenue
Operating revenues rose $90M in Q2 and $152M in H1, driven by authorized rate increases across states. Total revenue dollar amount was not disclosed in the call.
Profitability
Adjusted EPS was $1.61 in Q2 versus $1.49 in the prior year, and H1 adjusted EPS was $2.62 versus $2.51. Regulated Businesses' Q2 net income was $331M versus $288M.
Margins
Operating margin was not disclosed. O&M costs were flat period-over-period, while depreciation, financing costs, and general taxes increased as expected.
Balance Sheet
Debt-to-capital was 58% at June 30. The company issued $500M of long-term debt at 4.625%, settled 3.4M equity forward shares in June for $476M, and expects to settle the remaining equity forwards in Q4.
Key Risks
Pennsylvania's final order was well below the filed request at $75M versus $160M. The merger still requires multiple state approvals, and financing costs are expected to continue rising in line with the capital plan.
Outlook
Full-year 2026 adjusted EPS guidance was affirmed at $6.02–$6.12, with most growth weighted to H2. Long-term EPS and dividend growth targets remain 7%-9% through 2030.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 and first half 2026 saw strong adjusted EPS growth, driven by rate increases and cost control, with full-year guidance and long-term growth targets reaffirmed. Major acquisitions and regulatory wins, including the Nexus deal and Essential Utilities merger progress, support continued expansion.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 results met expectations, with adjusted EPS of $1.01 and full-year guidance reaffirmed. Dividend was raised 8.2%, and the Essential Utilities merger advanced with first state approval. Strong capital investments, regulatory progress, and legislative wins support continued growth.
Q4 2025 Q4 2025 2026-02-19
Delivered 8.9% EPS growth in 2025, affirmed 2026 guidance, and advanced a major merger with Essential Utilities. Invested $3.2 billion in infrastructure, maintained strong credit ratings, and continued focus on affordability and regulatory progress.
Q2 2025 Q2 2025 2025-07-31
Q2 and first-half 2025 EPS rose year-over-year, driven by rate increases, acquisitions, and strong customer usage. Guidance for 2025 EPS was narrowed to the top half of the range, with robust capital investment and acquisition momentum supporting long-term growth.
Q1 2025 Q1 2025 2025-05-01
Q1 2025 EPS rose 11% to $1.05, driven by rate increases and acquisitions, with 2025 EPS and dividend growth guidance reaffirmed at 7%-9%. Capital investment and acquisition pipelines remain robust, supported by strong credit ratings and recent legislative wins.
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This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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No Investment Recommendation:
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Information Sources:
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