Latest Ratios: P/E Ratio 26.3x · EV/EBITDA 15.6x · ROE 10.5%. (1992–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $29.9B | $25.4B | $24.3B | $25.5B | $27.7B | $34.4B | $27.9B | $22.2B | $16.3B | $16.4B | $13.0B |
| Enterprise Value | $45.7B | $41.2B | $38.3B | $37.6B | $40.1B | $45.3B | $38.4B | $31.7B | $24.8B | $24.0B | $20.1B |
| P/E Ratio → | 26.33 | 22.89 | 23.10 | 26.99 | 33.80 | 27.21 | 39.35 | 35.82 | 28.82 | 38.44 | 27.62 |
| P/S Ratio | 5.59 | 4.95 | 5.18 | 6.02 | 7.32 | 8.75 | 7.40 | 6.16 | 4.75 | 4.88 | 3.92 |
| P/B Ratio | 2.70 | 2.35 | 2.35 | 2.60 | 3.61 | 4.71 | 4.33 | 3.63 | 2.79 | 3.04 | 2.48 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 14.51 | 12.36 | 11.87 | 13.59 | 25.04 | 23.85 | 19.59 | 16.08 | 11.79 | 11.30 | 10.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.02 | 8.17 | 8.88 | 10.58 | 11.53 | 10.17 | 8.79 | 7.21 | 7.16 | 6.07 |
| EV / EBITDA | 15.57 | 14.87 | 15.28 | 17.02 | 20.87 | 24.74 | 20.74 | 17.66 | 15.07 | 13.78 | 12.94 |
| EV / EBIT | 24.30 | 20.25 | 20.35 | 22.70 | 29.71 | 35.57 | 29.07 | 26.02 | 21.61 | 18.96 | 18.09 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.3% | 43.3% | 60.3% | 59.4% | 58.1% | 54.8% | 57.1% | 57.2% | 57.0% | 59.0% | 54.5% |
| Operating Margin | 36.6% | 36.6% | 36.7% | 35.5% | 33.6% | 30.4% | 33.0% | 33.6% | 32.0% | 37.3% | 32.7% |
| Net Profit Margin | 21.6% | 21.6% | 22.4% | 22.3% | 21.6% | 32.1% | 18.8% | 17.2% | 16.5% | 12.7% | 14.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 10.4% | 10.8% | 10.9% | 18.4% | 11.3% | 10.4% | 10.1% | 8.0% | 9.1% |
| ROA | 3.2% | 3.2% | 3.3% | 3.3% | 3.0% | 5.0% | 3.0% | 2.8% | 2.8% | 2.2% | 2.6% |
| ROIC | 5.5% | 5.5% | 5.6% | 5.4% | 5.0% | 5.1% | 5.8% | 6.1% | 6.0% | 7.4% | 6.8% |
| ROCE | 6.1% | 6.1% | 5.9% | 5.7% | 5.2% | 5.2% | 5.9% | 6.1% | 6.1% | 7.5% | 6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.47 | 1.47 | 1.37 | 1.27 | 1.62 | 1.52 | 1.71 | 1.56 | 1.47 | 1.43 | 1.38 |
| Debt / EBITDA | 5.74 | 5.74 | 5.63 | 5.63 | 6.48 | 6.04 | 5.95 | 5.31 | 5.22 | 4.42 | 4.63 |
| Net Debt / Equity | — | 1.46 | 1.36 | 1.24 | 1.61 | 1.50 | 1.62 | 1.55 | 1.45 | 1.42 | 1.36 |
| Net Debt / EBITDA | 5.70 | 5.70 | 5.59 | 5.49 | 6.43 | 5.97 | 5.66 | 5.28 | 5.15 | 4.39 | 4.59 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 3.31 | 3.31 | 3.60 | 3.60 | 3.12 | 3.16 | 3.33 | 3.16 | 3.18 | 3.56 | 3.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.46 | 0.46 | 0.39 | 0.65 | 0.44 | 0.73 | 0.66 | 0.63 | 0.37 | 0.31 | 0.33 |
| Quick Ratio | 0.44 | 0.44 | 0.35 | 0.59 | 0.41 | 0.70 | 0.65 | 0.61 | 0.35 | 0.29 | 0.31 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.15 | 0.03 | 0.05 | 0.19 | 0.03 | 0.06 | 0.02 | 0.03 |
| Asset Turnover | — | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 |
| Inventory Turnover | 26.01 | 26.01 | 18.04 | 15.36 | 16.21 | 31.18 | 34.51 | 35.09 | 36.07 | 33.61 | 38.56 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.5% | 2.4% | 2.1% | 1.7% | 1.2% | 1.4% | 1.6% | 2.0% | 1.8% | 2.0% |
| Payout Ratio | 57.0% | 57.0% | 55.7% | 56.4% | 57.0% | 33.9% | 54.9% | 56.8% | 56.3% | 67.8% | 55.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.4% | 4.3% | 3.7% | 3.0% | 3.7% | 2.5% | 2.8% | 3.5% | 2.6% | 3.6% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.3% | 0.3% | 0.5% |
| Total Shareholder Yield | 2.2% | 2.5% | 2.4% | 2.1% | 1.7% | 1.2% | 1.4% | 1.7% | 2.2% | 2.1% | 2.5% |
| Shares Outstanding | — | $195M | $195M | $193M | $182M | $182M | $182M | $181M | $180M | $179M | $179M |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AWK stock.
American Water Works Company, Inc.'s current P/E ratio is 26.3x. The historical average is 26.4x. This places it at the 50th percentile of its historical range.
American Water Works Company, Inc.'s current EV/EBITDA is 15.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
American Water Works Company, Inc.'s return on equity (ROE) is 10.5%. The historical average is 7.6%.
Based on historical data, American Water Works Company, Inc. is trading at a P/E of 26.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Water Works Company, Inc.'s current dividend yield is 2.16% with a payout ratio of 57.0%.
American Water Works Company, Inc. has 43.3% gross margin and 36.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
American Water Works Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and capex funding
Metrics are mathematically derived from official filings.
Premium Multiple Prices in Sustained Regulatory Outcomes
As reported in the supplied valuation metrics, AWK trades at 26.74x trailing P/E and 2.74x book against a 2.1% dividend yield, a premium to most water peers that implies investors expect rate base growth to be sustained through upcoming rate cases.
A trailing P/E of 26.74 sits above WTRG at 20.93 and ARTNA at 15.07, and the PEG of 3.39 suggests the market is paying heavily for earnings growth that the reported quarterly trajectory does not fully confirm. The 2.1% yield is modest relative to the 3.7% offered by ARTNA, which means much of the return case rests on allowed-return realization and rate base compounding rather than current income. Investors should monitor whether authorized ROE outcomes keep pace with this multiple.
Thin Earned ROE Leaves Little Regulatory Cushion
Based on AWK's reported quarterly figures, ROE ranged from 1.8% to 3.5% across the ten quarters, with the most recent reading at 3.3%, a level that appears low for a regulated utility and warrants comparison against authorized returns.
Quarterly ROE figures of 1.8% to 3.5% are annualized inputs that read well below the returns typically authorized for regulated water utilities, suggesting either regulatory lag or meaningful drag from non-earning assets. The gap between earned and allowed ROE is the core diagnostic here, and the supplied data does not include authorized ROE figures, so the size of that gap cannot be confirmed. The trend appears to track seasonal and timing effects rather than a structural decline.
Operating Margin Swings Track Recovery Timing
According to the reported figures, AWK's operating margin moved between roughly 32% and 42.5% over the period, with the wide swings appearing to follow the timing of rate recovery relative to cost increases.
Margins near 32% in early 2026 and 2025Q4 compared with 42.5% in 2026Q3 indicate that cost recovery is lumpy rather than smooth, consistent with regulatory lag on O&M and capital cost increases. Interest coverage moving from 1.77x to 3.99x reflects the same timing pattern, which means earnings quality is sensitive to when rate cases conclude. Unit cost data is unavailable, so the drivers of the margin compression cannot be isolated.
Leverage Stable but Coverage Volatile
As reported in the financial statements, AWK's debt-to-capital held near 0.58 to 0.59 across all ten quarters, while interest coverage swung between 1.77x and 4.43x, indicating stable capital structure but uneven earnings support for interest costs.
A steady debt-to-capital ratio suggests management is holding the capital structure within a consistent band as the asset base grows. The wide range in interest coverage, however, means the company's ability to service debt depends heavily on the quarter, with the 1.77x reading in 2025Q4 warranting closer scrutiny. FFO-to-debt tracking between 3.85 and 5.63 appears adequate but not strong for the sector.
Dividend Coverage Depends on External Funding
Based on AWK's reported figures, the dividend payout ratio ranged from 42.5% to 82.7%, and operating cash flow covered dividends roughly 1.9 to 4.7 times, suggesting the dividend is currently funded internally but leaves limited room for CapEx.
The payout ratio reaching 82.7% in 2026Q1 indicates that earnings-based coverage tightened sharply at points in the period. Because free cash flow was negative in every quarter reviewed, the dividend and capital program are effectively financed externally, which means dividend sustainability depends on continued access to capital markets. Investors should monitor whether payout levels remain compatible with the ongoing funding requirement.
Payout Ratio Misreads Funding Reality
The payout ratio is commonly treated as a dividend safety gauge for utilities, but for AWK it obscures that negative free cash flow in all ten quarters means dividends are effectively funded alongside external capital rather than from retained earnings.
A payout ratio near 46% in 2026Q3 looks conservative in isolation, yet it omits that CapEx has consistently exceeded operating cash flow, so the company relies on debt and equity issuance to fund both growth and distributions. A better lens is a cash-based payout measure that subtracts CapEx from operating cash flow, or a funds-from-operations coverage test against total dividends plus required capital. Reported figures do not disclose all long-dated obligations, so the true external funding need may be understated.