American Water Works Company, Inc. (AWK) Financial Ratios
34 years of historical data (1992–2025) · Utilities · Regulated Water
EV/EBITDA
↓
14.51
↓-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
↓
2.25
↓-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 21.9x 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 19.0x, the stock trades at a premium of 16%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.4B | $25.4B | $24.3B | $25.5B | $27.7B | $34.4B | $27.9B | $22.2B | $16.3B | $16.4B | $13.0B |
| Enterprise Value | $40.2B | $41.2B | $38.3B | $37.6B | $40.1B | $45.3B | $38.4B | $31.7B | $24.8B | $24.0B | $20.1B |
| P/E Ratio → | 21.94 | 22.89 | 23.10 | 26.99 | 33.80 | 27.21 | 39.35 | 35.82 | 28.82 | 38.44 | 27.62 |
| P/S Ratio | 4.75 | 4.95 | 5.18 | 6.02 | 7.32 | 8.75 | 7.40 | 6.16 | 4.75 | 4.88 | 3.92 |
| P/B Ratio | 2.25 | 2.35 | 2.35 | 2.60 | 3.61 | 4.71 | 4.33 | 3.63 | 2.79 | 3.04 | 2.48 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 11.86 | 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 11.9x, placing the stock at a 22% 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 | 14.51 | 14.87 | 15.28 | 17.02 | 20.87 | 24.74 | 20.74 | 17.66 | 15.07 | 13.78 | 12.94 |
| EV / EBIT | 21.41 | 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 18.5%. 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 (11% above the sector average of 5.2x). 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 4.6% (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 | 4.6% | 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 | $24B | 21.9 | 14.5 | — | 43.3% | 36.6% | 10.5% | 5.5% | 5.7 |
 WTRG | $10B | 16.7 | 14.0 | — | 41.0% | 37.2% | 9.4% | 4.8% | 6.2 |
 CWT | $3B | 21.0 | 13.1 | — | 36.7% | 18.2% | 7.7% | 4.4% | 5.0 |
 MSEX | $967M | 22.1 | 15.9 | — | 39.2% | 27.9% | 9.1% | 4.7% | 4.8 |
 YORW | $426M | 21.2 | 15.7 | — | 54.8% | 35.8% | 8.5% | 4.6% | 5.5 |
 ARTNA | $332M | 14.6 | 10.4 | — | 37.2% | 31.5% | 9.3% | 6.3% | 3.7 |
 AWR | $3B | 22.9 | 15.7 | — | 50.8% | 30.9% | 13.3% | 8.0% | 3.7 |
 GWRS | $204M | 64.5 | 15.0 | — | 44.9% | 12.8% | 4.4% | 2.8% | 6.1 |
 WMS | $11B | 27.0 | 14.2 | 19.8 | 36.3% | 22.5% | 23.7% | 16.8% | 2.0 |
 XYL | $26B | 28.4 | 15.0 | 29.1 | 38.5% | 13.5% | 8.5% | 7.6% | 1.1 |
 PNR | $12B | 18.8 | 13.9 | 16.1 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
| Utilities Median | — | 19.0 | 11.9 | 18.6 | 38.4% | 18.5% | 9.3% | 4.9% | 5.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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AWK — 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 21.9x. 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 21.9x. 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 2.60% 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.