American Water Works (AWK) Fundamental Analysis: Revenue, Earnings & Valuation

3.07 / 10

Netural

AWK's fundamental assessment scores 3.1/10, indicating an inadequate condition. Key weaknesses include low Revenue-MV (-0.487) and Profit-MV (0.596) rankings, alongside a high Non-current assets / Total assets ratio (95.5%). Strengths are seen in Cash-UP (0.786) and Fixed assets turnover (0.134), yet these are offset by negative PB-ROE (-0.265). The overall fundamental stance is therefore selective and cautious.

Analysis Checks(2/10)

Revenue-MV

Value-0.49

Score1/3

Weight-0.09%

1M Return-0.01%

Gross profit margin (%)

Value61.98

Score1/3

Weight11.39%

1M Return1.28%

Profit-MV

Value0.60

Score1/3

Weight11.06%

1M Return1.57%

Non-current assets / Total assets (%)

Value95.53

Score0/3

Weight-3.53%

1M Return-0.49%

PB-ROE

Value-0.27

Score1/3

Weight-7.60%

1M Return-2.16%

Cash-UP

Value0.79

Score3/3

Weight35.01%

1M Return3.10%

Fixed assets turnover ratio

Value0.13

Score2/3

Weight20.96%

1M Return2.54%

Interest coverage ratio (EBIT / Interest expense) (%)

Value3.95

Score1/3

Weight17.68%

1M Return1.95%

Current assets / Total assets (%)

Value4.47

Score1/3

Weight8.70%

1M Return0.96%

Cash-MV

Value0.38

Score1/3

Weight6.42%

1M Return0.89%

Is AWK undervalued or overvalued?

AWK scores 3.07/10 on fundamentals and holds a Fair valuation at present. Backed by its 3.73% ROE, 21.93% net margin, 21.82 P/E ratio, 1.01 P/B ratio, and 12.90% earnings growth, these metrics solidify its Netural investment rating.