American Water Works Company, Inc. (AWK) Financial Ratios
34 years of historical data (1992–2025) · Utilities · Regulated Water
EV/EBITDA
↓
14.55
↓-22% vs avg
5yr avg: 18.56
30Y Low9.2·High69.1
P/FCF
N/A
—
5yr avg: N/A
30Y Low152.1·High152.1
P/B Ratio
↓
2.26
↓-28% vs avg
5yr avg: 3.12
30Y Low0.8·High4.7
ROE
↓
10.5%
-14% vs avg
5yr avg: 12.2%
30Y Low-13%·High18%
Debt/EBITDA
↓
5.74
↓-3% vs avg
5yr avg: 5.90
30Y Low4.2·High42.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AWK Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
American Water Works Company, Inc. trades at 22.0x earnings, 18% below its 5-year average of 26.8x, sitting at the 25th percentile of its historical range. Compared to the Utilities sector median P/E of 19.8x, the stock trades at a premium of 11%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.5B | $25.4B | $24.3B | $25.5B | $27.7B | $34.4B | $27.9B | $22.2B | $16.3B | $16.4B | $13.0B |
| Enterprise Value | $40.3B | $41.2B | $38.3B | $37.6B | $40.1B | $45.3B | $38.4B | $31.7B | $24.8B | $24.0B | $20.1B |
| P/E Ratio → | 22.05 | 22.89 | 23.10 | 26.99 | 33.80 | 27.21 | 39.35 | 35.82 | 28.82 | 38.44 | 27.62 |
| P/S Ratio | 4.78 | 4.95 | 5.18 | 6.02 | 7.32 | 8.75 | 7.40 | 6.16 | 4.75 | 4.88 | 3.92 |
| P/B Ratio | 2.26 | 2.35 | 2.35 | 2.60 | 3.61 | 4.71 | 4.33 | 3.63 | 2.79 | 3.04 | 2.48 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 11.92 | 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
AWK EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
American Water Works Company, Inc.'s enterprise value stands at 14.5x EBITDA, 22% below its 5-year average of 18.6x. The Utilities sector median is 11.3x, placing the stock at a 29% premium on an enterprise-value basis.
| 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 | 14.55 | 14.87 | 15.28 | 17.02 | 20.87 | 24.74 | 20.74 | 17.66 | 15.07 | 13.78 | 12.94 |
| EV / EBIT | 21.47 | 21.95 | 20.35 | 22.70 | 29.71 | 35.57 | 29.07 | 26.02 | 21.61 | 18.96 | 18.09 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
AWK Profitability
Margins and return-on-capital ratios measuring operating efficiency
American Water Works Company, Inc. earns an operating margin of 36.6%, significantly above the Utilities sector average of 19.9%. Operating margins have expanded from 35.5% to 36.6% over the past 3 years, signaling improving operational efficiency. ROE of 10.5% is modest. ROIC of 5.5% represents adequate returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
AWK Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
American Water Works Company, Inc. carries a Debt/EBITDA ratio of 5.7x, which is highly leveraged (20% above the sector average of 4.8x). Net debt stands at $15.8B ($15.9B total debt minus $119M cash). Interest coverage of 3.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 | 3.06 | 3.06 | 3.60 | 3.60 | 3.12 | 3.16 | 3.33 | 3.16 | 3.18 | 3.56 | 3.27 |
AWK Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.46x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.65x to 0.46x over the past 3 years.
| 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 | 0.46 | 0.46 | 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 | — | — | 18.04 | 15.36 | 16.21 | 31.18 | 34.51 | 35.09 | 36.07 | 33.61 | 38.56 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
AWK Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
American Water Works Company, Inc. returns 2.6% to shareholders annually primarily through dividends. A payout ratio of 57.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.6% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 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 | 2.6% | 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 |
Peer Comparison
Compare AWK with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AWKYou | $25B | 22.0 | 14.5 | — | 43.3% | 36.6% | 10.5% | 5.5% | 5.7 |
 WTRG | $11B | 17.1 | 14.1 | — | 41.0% | 37.2% | 9.4% | 4.8% | 6.2 |
 CWT | $3B | 20.0 | 12.7 | — | 36.7% | 18.2% | 7.7% | 4.4% | 5.0 |
 MSEX | $950M | 21.7 | 15.7 | — | 39.2% | 27.9% | 9.1% | 4.7% | 4.8 |
 YORW | $463M | 20.9 | 16.6 | — | 54.8% | 35.8% | 8.5% | 4.6% | 5.5 |
 ARTNA | $328M | 14.4 | 10.3 | — | 37.2% | 31.5% | 9.3% | 6.3% | 3.7 |
 AWR | $3B | 22.5 | 12.2 | — | 50.8% | 30.9% | 13.3% | 8.0% | 3.7 |
 GWRS | $202M | 63.7 | 9.1 | — | 44.9% | 12.8% | 4.4% | 4.2% | 0.3 |
 WMS | $13B | 25.8 | 16.2 | 34.3 | 37.7% | 22.6% | 30.9% | 20.7% | 1.7 |
 XYL | $28B | 30.3 | 15.9 | 31.0 | 38.5% | 13.5% | 8.5% | 7.6% | 1.1 |
 PNR | $13B | 20.2 | 14.8 | 17.3 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
| Utilities Median | — | 19.8 | 11.3 | 15.1 | 41.0% | 19.9% | 9.4% | 4.8% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full AWK Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See AWK's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs AWK Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare AWK vs WTRG
Side-by-side business, growth, and profitability comparison vs Essential Utilities, Inc..
Start ComparisonAWK — Frequently Asked Questions
Quick answers to the most common questions about buying AWK stock.
What is American Water Works Company, Inc.'s P/E ratio?
American Water Works Company, Inc.'s current P/E ratio is 22.0x. The historical average is 26.4x. This places it at the 25th percentile of its historical range.
What is American Water Works Company, Inc.'s EV/EBITDA?
American Water Works Company, Inc.'s current EV/EBITDA is 14.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
What is American Water Works Company, Inc.'s ROE?
American Water Works Company, Inc.'s return on equity (ROE) is 10.5%. The historical average is 7.6%.
Is AWK stock overvalued?
Based on historical data, American Water Works Company, Inc. is trading at a P/E of 22.0x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is American Water Works Company, Inc.'s dividend yield?
American Water Works Company, Inc.'s current dividend yield is 2.58% with a payout ratio of 57.0%.
What are American Water Works Company, Inc.'s profit margins?
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.
How much debt does American Water Works Company, Inc. have?
American Water Works Company, Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.