Stock analysis · Bull Rankings model

AWK analysis

American Water Works Company, Inc.Utilities - Regulated Water. Scored on the same transparent model behind the daily rankings.

Water
AWK
American Water Works Company, Inc. · Utilities - Regulated Water
FCF-$1.0bF
Rev+7.3%B
D/E1.38B
P/S5.1xD
PEG2.68C
58.9Score
$134.17$26.7B
1Y Target$139.36Analyst consensus · 11 analysts
5Y Target$243.75Compound horizon
10Y Target$435.62Long-dated conviction
FCF-$1.0bTTM
F
FCF is negative (-$1.0b) — cash-burning phase; acceptable only for pre-profit spec names
Rev+7.3%TTM YoY
B
Revenue +7.3% — at or above S&P median
D/E1.38
B
D/E 1.38 — near the Utilities debt median (≈60th pctile)
P/S5.1x
D
P/S 5.1x — most expensive decile in Utilities (≈95th pctile)
PEG2.68
C
PEG 2.68 — expensive relative to growth rate

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 58.9
Quality0.56
Growth0.68
Value0.54
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
9% off the 12-month high
Quality signals · context only
ROIC8.2% · Breturn on invested capital — not score-weighted
Why now
Utilities - Regulated Water · market cap $26.7b. 9% off the 52-week high of $147.87. 11 sell-side analysts rate this a Hold with a mean 1-yr target of $139.36 (implying +4% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close.
Risk
Free cash flow is negative (-$1.0b) — capital raises or debt issuance likely required; dilution / leverage risk.
Horizon
1-3 yr $139.36 (11-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $243.75 — requires the platform / technology to reach commercial scale. 10 yr $435.62 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

AWK vs the Top Picks average

PillarAWKBook avgDiff
Quality0.560.83-0.27
Growth0.680.91-0.23
Value0.540.75-0.21

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-7.9 over 32 daily scores
From 66.8 (Jun 22) → 58.9 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
14
Position size
$1,878
3.8% of portfolio
Stop price
$100.63
25% below $134.17
$ at risk if stopped
$469.59
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

American Water Works Company, Inc. (AWK): score, valuation & FAQ

American Water Works Company, Inc. (AWK) is a Utilities - Regulated Water company that scores 58.9 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

The model flags P/S (D) and FCF (F) as weaker areas.

Is AWK a good stock to buy?

Bull Rankings scores AWK 58.9 out of 100 on its quality-growth model, which is a middling reading. A score is a quantitative screen of American Water Works Company, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does AWK score 58.9 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). AWK grades middle-of-pack across the strip, and is held back by P/S (D) and FCF (F). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is AWK overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for AWK — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in AWK?

Free cash flow is negative (-$1.0b) — capital raises or debt issuance likely required; dilution / leverage risk.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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