American Water Works Company, Inc.Find Ratings Reports
AMERICAN WATER WORKS CO INC's gross profit margin for the second quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. AMERICAN WATER WORKS CO INC has very weak liquidity. Currently, the Quick Ratio is 0.24 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.55% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||999.0||931.0|
|Net Income ($mil)||207.0||176.0|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||104.0||605.0|
|Total Assets ($mil)||23532.0||22626.0|
|Total Debt ($mil)||11080.0||10666.0|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||48.85||49.95|
|Return on Assets||3.18||2.81|
|Return on Equity||11.2||10.07|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||181.5||181.2|
|Div / share||0.6||0.55|
|Book value / share||36.86||34.98|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||677050.0||728400.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 32.49 for the Utilities subsector and a significant premium compared to the S&P 500 average of 28.66. For additional comparison, its price-to-book ratio of 4.71 indicates valuation on par with the S&P 500 average of 4.58 and a premium versus the subsector average of 3.70. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, AMERICAN WATER WORKS CO INC proves to trade at a premium to investment alternatives.
|AWK 42.02||Peers 35.64||AWK 22.25||Peers 20.66|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AWK is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AWK is trading at a valuation on par to its peers.
|AWK 37.81||Peers 37.29||AWK 4.84||Peers 3.56|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
AWK is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AWK trades at a significant premium to its peers.
|AWK 4.71||Peers 3.70||AWK 17.32||Peers 38.92|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AWK is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AWK is expected to significantly trail its peers on the basis of its earnings growth rate.
|AWK 8.10||Peers 9.31||AWK 5.39||Peers 24.78|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AWK is trading at a discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
AWK significantly trails its peers on the basis of sales growth.