American Water Works Company, Inc. [NYSE:AWK]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For American Water Works Company, Inc. [AWK], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give AWK an Outperform rating. The average 12-month price forecast for this stock is $97.67, with the high estimate being $105.00, the low estimate being $83.00 and the median estimate amounting to $101.00. This is compared to its latest closing price of $88.84.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for American Water Works Company, Inc. [AWK] is sitting at 2.07. This is compared to 1 month ago, when its average rating was 2.07.
For the quarter ending in Sep-18 American Water Works Company, Inc. [AWK] generated $0.98 billion in sales. That’s 0.38% lower than the average estimate of $0.98 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 19 Feb (In 42 Days).
Fundamental Analysis of American Water Works Company, Inc. [AWK]
Now let’s turn to look at profitability: with a current Operating Margin for American Water Works Company, Inc. [AWK] sitting at +36.58 and its Gross Margin at +44.30, this company’s Net Margin is now 13.30%. These measurements indicate that American Water Works Company, Inc. [AWK] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 9.63, and its Return on Invested Capital has reached 6.70%. its Return on Equity is 8.04, and its Return on Assets is 2.12. These metrics suggest that this American Water Works Company, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, American Water Works Company, Inc. [AWK] has generated a Total Debt to Total Equity ratio of 143.45. Similarly, its Total Debt to Total Capital is 58.92, while its Total Debt to Total Assets stands at 37.51. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 120.67, and its Long-Term Debt to Total Capital is 49.57.
What about valuation? This company’s Enterprise Value to EBITDA is 13.90 and its Total Debt to EBITDA Value is 4.49. The Enterprise Value to Sales for this firm is now 7.01, and its Total Debt to Enterprise Value stands at 0.32. American Water Works Company, Inc. [AWK] has a Price to Book Ratio of 3.03, a Price to Cash Flow Ratio of 11.30 and P/E Ratio of 35.80. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, American Water Works Company, Inc. [AWK] earns $486,522 for each employee under its payroll. Income works out to $61,739 per employee. Similarly, this company’s Receivables Turnover is 6.61 and its Total Asset Turnover is 0.17. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.29 and its Current Ratio is 0.31. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: American Water Works Company, Inc. [AWK] has 181.00M shares outstanding, amounting to a total market cap of $16.32B. Its stock price has been found in the range of 76.04 to 98.18. At its current price, it has moved by -8.19% from its 52-week high, and it has moved 18.54% from its 52-week low.
This stock’s Beta value is currently 0.23, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 46.56. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is American Water Works Company, Inc. [AWK] a Reliable Buy?
American Water Works Company, Inc. [AWK] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.