Demystifying American Water Works Co: Insights From 5 Analyst Reviews

Across the recent three months, 5 analysts have shared their insights on American Water Works Co AWK, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $144.2, a high estimate of $160.00, and a low estimate of $128.00. Marking an increase of 3.24%, the current average surpasses the previous average price target of $139.67.

Investigating Analyst Ratings: An Elaborate Study

The perception of American Water Works Co by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to American Water Works Co. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of American Water Works Co compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for American Water Works Co's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of American Water Works Co's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on American Water Works Co analyst ratings.

Get to Know American Water Works Co Better

American Water Works is the largest investor-owned US water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.

A Deep Dive into American Water Works Co's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Positive Revenue Trend: Examining American Water Works Co's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.96% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: American Water Works Co's net margin is impressive, surpassing industry averages. With a net margin of 17.95%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): American Water Works Co's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.96% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): American Water Works Co's ROA stands out, surpassing industry averages. With an impressive ROA of 0.62%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: American Water Works Co's debt-to-equity ratio surpasses industry norms, standing at 1.38. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.