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American Water Works Company, Inc. (AWK)

Utilities Balanced

American Water Works is the largest publicly traded water and wastewater utility company in the United States, keeping the taps running for millions of homes.

$134.17

Is American Water Works Company, Inc. a good stock for a UK beginner?

The honest version: American Water Works is the largest publicly traded water and wastewater utility company in the United States, keeping the taps running for millions of homes.

No rating · no target price · nothing for sale here
Price-7.1%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-6% past year
$134.17
Low $120.57High $147.87
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into American Water Works Company, Inc.
$929-7%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$26.66B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
2.20M
Day range: The lowest and highest price the shares traded at during the latest day.
$134.13 – $136.90
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$120.57 – $147.87
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
23.3
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
2.7%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.60
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.60
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +1% past week · ▼ -6% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Long-term climate resilience projects secure the company's dominance for decades.

The bear case

Severe environmental challenges or water scarcity issues create unmanageable costs.

What does American Water Works Company, Inc. do?

Think of American Water Works as the backbone of local infrastructure, providing essential water and sewage services to millions of customers across the US. They make their money through regulated rates, meaning their income is generally steady and predictable regardless of the wider economy. It comes down to how they shoulder the huge, ongoing costs of upgrading ageing pipes and treatment plants while keeping regulators comfortable with their pricing.

VQGMI
Factor profile

On our factor screen it looks strongest on income and quality, and weakest on growth.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 44Quality: How profitable and financially healthy the company is (higher = stronger). 53Growth: How fast revenue and earnings are growing (higher = faster). 37Momentum: How the share price has been trending recently (higher = stronger recent run). 48Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 55
Quick checks
What's strong
  • Provides an essential service that people cannot live without.
  • Regulated business model offers a high degree of predictability.
  • Lower volatility compared to the broader stock market.
What to watch
  • Regulators may deny requests to raise water prices for customers.
  • Ageing infrastructure could lead to expensive, unforeseen repair bills.
  • Rising interest rates make the company's debt more expensive to service.

What do American Water Works Company, Inc.'s numbers mean?

P/E
23.2
This shows how much you are paying for every pound of the company's profit; a higher number suggests investors are willing to pay more for future stability.
Dividend yield
2.7%
This is the annual cash payout to shareholders as a percentage of the share price, acting as a regular income stream.
Beta
0.6
This measures how much the share price jumps around compared to the wider market; a number below 1 suggests it is generally less volatile than the average stock.
Net margin
21.2%
This represents the slice of every pound of revenue that actually turns into profit after all bills are paid.

How much money does American Water Works Company, Inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$362.75M$725.50M$1.09B$1.45BQ1 25Q2 25Q3 25Q1 26Q2 26
Gross margin
61.5%
Net margin
21.3%
Return on equity
10.1%

Does American Water Works Company, Inc. pay a dividend?

Yes - American Water Works Company, Inc. currently pays a dividend of about 2.7% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

When does American Water Works Company, Inc. report earnings, and how did recent quarters go?

American Water Works Company, Inc. is next scheduled to report on about 2026-10-28 - dates can move, and we don't predict results; this just tells you when to look.

Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.

ReportedExpected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number.Actual EPSvs expected
2026-07-29$1.55$1.61Beat +4%
2026-04-29$1.09$1.01Missed -7%
2026-02-18$1.27$1.24Missed -2%
2025-10-29$1.88$1.94Beat +3%
2025-07-30$1.53$1.48Missed -3%
2025-04-30$1.07$1.05Missed -2%

Across the last 6 quarters here, American Water Works Company, Inc. came in ahead of what analysts expected 2 times. One quarter is noise, not a trend.

See who else reports over the next two weeks →

Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.

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What are the scenarios for American Water Works Company, Inc.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$147$134$119today · $134▲ Bull · $143• Base · $134▼ Bear · $124in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +8%Interest rates stabilise, making utility dividends more attractive to investors.
Base
-2% to +2%Business continues as usual with steady, regulated growth.
Bear
-5% to -10%Unexpectedly high maintenance costs eat into profit margins.

What are the pros and cons of American Water Works Company, Inc.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Provides an essential service that people cannot live without.
  • Regulated business model offers a high degree of predictability.
  • Lower volatility compared to the broader stock market.
The catch3
  • Growth is often limited by strict government regulation.
  • Requires constant, heavy spending on physical infrastructure.
  • Recent earnings growth has been slightly negative.
Key risks3
  • Regulators may deny requests to raise water prices for customers.
  • Ageing infrastructure could lead to expensive, unforeseen repair bills.
  • Rising interest rates make the company's debt more expensive to service.
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.