| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 23.9x | 17.8x | Bottom tier | |
Growth | 48 | 7.3% | 7.1% | Around median | |
Quality | 45 | 6.3% | 4.5% | Around median | |
Safety | 36 | 5.3x | 2.6x | Bottom tier | |
Capital Return | 47 | 2.40% | 2.12% | Around median | |
Momentum | 66 | -2.9% | 2.9% | Around median | |
Sentiment | 68 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
American Water Works operates water and wastewater utilities across 14 states, generating revenue by providing these services and recovering infrastructure investments through rates approved by state regulators. Its growth model is based on investing capital in network upgrades and improvements to resilience and water quality, then earning a return on those investments, alongside acquiring new water systems and expanding its customer base to achieve economies of scale.
In Q2 fiscal 2026, the company recorded revenue of $1.4 billion and net income of $315 million, equivalent to a calculated net income margin of approximately 22.5%, while adjusted earnings per share reached $1.61 versus $1.49 in the corresponding period of fiscal 2025, representing growth of slightly more than 8%. In the first six months of fiscal 2026, adjusted earnings per share reached $2.62 versus $2.51 in the corresponding period, while operating and maintenance costs remained stable year over year despite higher depreciation, financing costs, and general taxes.
Fiscal 2025 revenue was approximately $5.1 billion, net income was $1.1 billion, and earnings per share were $5.69, while trailing-twelve-month data through fiscal 2026 showed revenue of approximately $5.3 billion, net income of $1.1 billion, and earnings per share of approximately $5.76. The operating mix combines regulated water and wastewater services, organic network investments, and customer-base growth through acquisitions, most notably the Nexus Water Group systems, which added 47 thousand customer connections.
The analyst consensus rates the stock a “Buy,” with an average target of $137.5 and a relatively wide range of $130 to $150. The average target is below the 52-week range high of $145.64, while the highest target exceeds that high, reflecting differing views on the impact of regulated growth and acquisitions versus financing and regulatory-decision risks. The data do not include a usable earnings multiple, so the valuation assessment is based on the target range and the 52-week range of $120.57–$145.64.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
American Water recorded revenue of approximately $1.4 billion and net income of $315 million in Q2 fiscal 2026. Adjusted earnings per share reached $1.61 versus $1.49 in the corresponding period of fiscal 2025, representing growth of slightly more than 8%. The revenue increase came from approved rate increases to recover investments, while operating and maintenance costs remained stable and depreciation, financing costs, and general taxes increased.
On July 29, 2026, the company reaffirmed its adjusted earnings-per-share range of $6.02 to $6.12 for fiscal 2026. This range targets growth of approximately 8%, compared with adjusted earnings per share of $2.62 in the first six months of fiscal 2026. Management explained that most of the expected earnings-per-share growth will come in the second half as revenue increases in key states take effect in Q3.
American Water closed the acquisition of the Nexus Water Group systems on June 1, 2026, several months ahead of the estimated schedule. The systems added 47 thousand customer connections and 70 local employees and were part of $1.8 billion in capital investments and acquisitions during the first half of fiscal 2026. As of June 30, 2026, the company had additional agreements covering approximately 57 thousand connections across six states, valued at $236 million, supporting its 2% customer growth target.
Automated analysis for informational purposes only — not investment advice.
The proposed merger received approval from Kentucky in April 2026, followed by approvals from Ohio and Virginia in May and June 2026. The parties also reached a preliminary settlement in Texas, while proceedings and settlement discussions continued in other states during the July 30, 2026 call. Management expected the transaction to close by the end of Q1 fiscal 2027 and indicated that economies of scale would emerge over time.
In Pennsylvania, the company received an annual revenue increase of $75 million versus a request of $160 million, with a 9.55% return on equity. The DSIC mechanism covers only approximately 40% of capital spending in the state, while comprehensively increasing the eligible asset base requires legislative amendment. As of July 30, 2026, the company had general rate cases pending before six regulatory bodies, making the timing and value of investment recovery key factors in its results.
Total debt to capital stood at 58% on June 30, 2026. On May 20, 2026, the company issued $500 million of long-term debt at an interest rate of 4.625%. In June 2026, it also settled approximately 3.4 million shares out of nearly 8 million shares under forward contracts, generating net proceeds of $476 million, and planned to settle the remaining contracts in Q4 fiscal 2026.
