American Water Works Company, Inc.AWK

Utilities
Neutral

ASignal's systematic analysis rates AWK as Neutral. American Water Works Company, Inc. has a market cap of $25.23B, a P/E of 23.32, a 21.2% net margin, and 5.7% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 16, 2026

The case on AWK

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Operating margin of 33.22% indicates strong pricing power
  • Gross margin of 60.83% reflects high profitability at the product level
  • Forward P/E of 19.70x suggests valuation improvement relative to current earnings
  • EV/EBITDA of 14.37x is reasonable for a regulated utility with stable cash flows
  • Dividend yield of 3.58% provides income appeal
VS
Bear case
  • Negative free cash flow of $-1.90B raises sustainability concerns
  • Debt-to-equity ratio of 1.42x indicates high leverage
  • Current ratio of 0.37x and quick ratio of 0.28x signal weak short-term liquidity
  • Earnings declining YoY by 4.80% despite revenue growth
  • MACD below signal line with negative histogram suggests weakening momentum
  • Price below 20-day and 50-day moving averages indicates near-term downtrend

Key facts

Sector
Utilities
Market cap
$25.23B
P/E ratio
23.32
Gross margin
60.8%
Net margin
21.2%
Rev growth YoY
5.7%
Price (Jul 16, 2026)
$129.21

Peers

Clustered with AWK by analysis-profile similarity.

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See the full verdict on AWK

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes AWK

Most investors never get a second opinion, let alone several. ASignal runs AWK past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

American Water Works Company, Inc. (AWK) Stock Analysis - ASignal rates it Neutral