American Water Works (AWK) Stock Analysis

November 11, 2026

This is a peer-relative look at American Water Works (AWK): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Utilities peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for American Water Works (AWK)
Profile Item	AWK
Name	American Water Works Company, Inc.
Country/Region	United States
GICS Sector	Utilities
GICS Industry Group	Utilities
GICS Industry	Water Utilities
GICS Sub-Industry	Water Utilities
Market Capitalization	29.92 billion USD
Currency	USD
Exchange	NYSE
Listing Date	April 23, 2008
Security Type	Common Stock

Price Performance

Cumulative Growth

AWK

GSPC

American Water Works (AWK) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Water Works (AWK) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for American Water Works (AWK) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Total Return (1Y)	17.61%	5.85%
Total Return (3Y, Annualized)	9.05%	15.48%
Total Return (5Y, Annualized)	-0.39%	8.14%

Risk Profile

Drawdown History

AWK

GSPC

American Water Works (AWK) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for American Water Works (AWK) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Volatility (1Y, Annualized)	22.53%	22.23%
Beta (5Y)	0.54	0.53
Max Drawdown (5Y)	-37.10%	-36.85%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AWK is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Sharpe Ratio (1Y)	0.59	0.08
Sortino Ratio (1Y)	0.95	0.12

Profitability

ROE (TTM)

American Water Works (AWK) posts ROE of 9.95%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

AWK

Utilities industry group

9.95%

Group distribution

Max: 17.99%
Q3: 12.01%
AWK: 9.95%
Median: 9.44%
Q1: 7.56%
Min: 2.17%

Largest peers

CEG: 15.06%
NEE: 14.06%
SO: 11.90%
AEP: 10.60%
NGG: 10.31%
DUK: 10.10%
AWK: 9.95%

Where American Water Works (AWK) stands on ROE within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

American Water Works (AWK) keeps 21.26% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

AWK

Utilities industry group

21.26%

Group distribution

Max: 28.78%
AWK: 21.26%
Q3: 17.30%
Median: 12.73%
Q1: 9.18%
Min: -0.20%

Largest peers

NEE: 40.37%
AWK: 21.26%
NGG: 21.15%
DUK: 16.16%
SO: 16.00%
AEP: 14.21%
CEG: 11.08%

Where American Water Works (AWK) stands on net margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

American Water Works (AWK) turns 43.18% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

AWK

Utilities industry group

43.18%

Group distribution

Max: 53.83%
AWK: 43.18%
Q3: 31.12%
Median: 23.62%
Q1: 15.45%
Min: -4.90%

Largest peers

AWK: 43.18%
SO: 36.92%
NEE: 33.00%
DUK: 30.03%
NGG: 28.64%
AEP: 26.89%
CEG: 8.66%

Where American Water Works (AWK) stands on operating margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
ROE (TTM)	9.95%	9.44%
ROA (TTM)	3.50%	3.08%
Net Margin (TTM)	21.26%	12.73%
Operating Margin (TTM)	43.18%	23.62%
Gross Margin (TTM)	61.86%	44.03%

Growth

Revenue Growth

American Water Works (AWK) grew revenue 9.74%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

American Water Works (AWK): Revenue Growth across different time periods, set against Utilities industry-group medians.

EPS Growth

American Water Works (AWK) grew earnings per share 5.57%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

American Water Works (AWK): EPS Growth across different time periods, set against Utilities industry-group medians.

Growth Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Revenue Growth (YoY)	9.74%	8.45%
Revenue Growth (3Y CAGR)	10.67%	3.87%
EPS Growth (YoY)	5.57%	3.93%
EPS Growth (3Y CAGR)	8.06%	5.25%

Financial Strength

Current Ratio (MRQ)

American Water Works (AWK) has current ratio of 0.39, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

AWK

Utilities industry group

0.39

Group distribution

Max: 1.90
Q3: 1.17
Median: 0.88
Q1: 0.66
AWK: 0.39
Min: 0.29

Largest peers

CEG: 1.46
SO: 0.84
DUK: 0.68
NGG: 0.62
NEE: 0.53
AEP: 0.51
AWK: 0.39

Where American Water Works (AWK) stands on current ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

American Water Works (AWK) has debt-to-equity ratio of 1.38, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

AWK

Utilities industry group

1.38

Group distribution

Max: 2.63
Q3: 1.77
AWK: 1.38
Median: 1.35
Q1: 0.84
Min: 0.00

Largest peers

SO: 1.68
DUK: 1.63
AEP: 1.62
NEE: 1.53
AWK: 1.38
NGG: 1.32
CEG: 0.76

Where American Water Works (AWK) stands on debt-to-equity ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Current Ratio (MRQ)	0.39	0.88
Debt / Equity (MRQ)	1.38	1.35
Net Debt / EBITDA	5.49	5.31

Dividends

Dividend Yield (TTM)

American Water Works (AWK) has dividend yield of 2.26%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

AWK

Utilities industry group

2.26%

Group distribution

Max: 6.66%
Q3: 3.58%
Median: 2.85%
AWK: 2.26%
Q1: 0.66%
Min: 0.00%

Largest peers

DUK: 3.29%
SO: 3.21%
AEP: 3.00%
NEE: 2.76%
AWK: 2.26%
CEG: 0.68%
NGG: 0.57%

Where American Water Works (AWK) stands on dividend yield within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

American Water Works (AWK) has payout ratio of 59.60%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

AWK

Utilities industry group

59.60%

Group distribution

Max: 113.04%
Q3: 68.72%
AWK: 59.60%
Median: 56.38%
Q1: 32.38%
Min: 0.00%

Largest peers

NGG: 71.97%
SO: 68.49%
DUK: 62.76%
AEP: 62.09%
AWK: 59.60%
NEE: 43.89%
CEG: 15.92%

Where American Water Works (AWK) stands on payout ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
Dividend Yield (TTM)	2.26%	2.85%
Dividend Payout Ratio (TTM)	59.60%	56.38%

Valuation

P/E Ratio (TTM)

American Water Works (AWK) trades at P/E ratio of 26.00, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

AWK

Utilities industry group

26.00

Group distribution

Max: 31.22
AWK: 26.00
Q3: 23.30
Median: 19.64
Q1: 15.17
Min: 3.34

Largest peers

AWK: 26.00
CEG: 24.43
SO: 21.08
AEP: 20.67
DUK: 18.74
NEE: 15.67
NGG: 15.54

Where American Water Works (AWK) stands on P/E ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

American Water Works (AWK) trades at 5.60 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

AWK

Utilities industry group

5.60

Group distribution

Max: 6.35
AWK: 5.60
Q3: 3.63
Median: 2.63
Q1: 1.52
Min: 0.00

Largest peers

NEE: 6.33
AWK: 5.60
NGG: 4.46
SO: 3.45
DUK: 2.99
AEP: 2.92
CEG: 2.83

Where American Water Works (AWK) stands on P/S ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

American Water Works (AWK) trades at 2.51 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

AWK

Utilities industry group

2.51

Group distribution

Max: 3.12
AWK: 2.51
Q3: 2.21
Median: 1.83
Q1: 1.46
Min: 0.34

Largest peers

NGG: 9.36
NEE: 2.97
CEG: 2.78
SO: 2.56
AWK: 2.51
AEP: 2.10
DUK: 1.83

Where American Water Works (AWK) stands on P/B ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

American Water Works (AWK) metric values compared with Utilities industry-group medians
Metric	Current stock: AWK	Industry group median
P/E Ratio (TTM)	26.00	19.64
P/S Ratio (TTM)	5.60	2.63
P/B Ratio (MRQ)	2.51	1.83
Free Cash Flow Yield (TTM)	-5.45%	-7.11%