American Water Works Company, Inc.

Fundamentals4.0
Price Action6.0
News Sentiment6.0
AI Rating
5.0

Key Drivers

  • Robust margins
  • Negative FCF
  • High leverage

AI
AI Summary

5.0

AWK has shifted from a predictable dividend utility into a financing‑intensive regulated infrastructure operator—materially negative FCF, heavy multi‑year capex and reliance on timely rate-case recoveries make dividend and equity returns contingent on access to capital and sustained regulatory wins rather than routine cash generation.

RateBase
RefinancingRisk
CashConversion‍

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

4.0

Key Financial Insights:

  • Robust margins
  • Negative FCF
  • High leverage

AWK delivers strong reported profitability (2025 net income $1.11bn, EBITDA margin ~64%, ROE 10%) but is undermined by very weak liquidity, materially negative free cash flow (~-$1.24bn) and high leverage ($15.92bn debt, D/E ~2.27), making its current premium valuation potentially risky.

CashGenerators
HighLeverage

Price Behavior

6.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Sideways consolidation
  • Mid‑March high
  • Late‑Feb support

AWK has traded roughly sideways over the last month (rally from late‑February lows into mid‑March highs) with neutral momentum (RSI ~51)—watch a conviction break above the mid‑March peak for bullish continuation or a failure to hold the late‑February low for renewed downside.

upside
flat
Support Level: n/a (late‑February low around 2026-02-20)
Resistance Level: n/a (mid‑March peak around 2026-03-13–2026-03-16)

Rally from late‑February lows into mid‑March highs with little net change over the last month

Sentiment & News

6.0

Key News Insights:

  • Large capex plan
  • Rate approvals
  • Modest selling

AWK is executing multi‑state, large‑scale capex and securing rate-driven revenue gains to fund service upgrades and sustain dividend growth amid modest institutional selling and active customer outreach.

Infrastructure
Dividend

Continued capital spending and regulatory support should underpin steady utility cash flows and dividend reliability, while modest institutional trimming may limit near-term upside