Explain this page
Arphra AIPlain-English read on American Water Works Company, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +54.78% | +58.10% | +59.38% | +60.33% | +43.33% | +54.24% | +55.68% | +53.31% | +55.67% |
| Operating margin | +30.43% | +33.57% | +35.52% | +36.68% | +36.56% | +35.72% | +36.08% | +36.65% | +36.65% |
| EBITDA margin | +48.60% | +52.72% | +55.74% | +57.00% | +53.95% | +54.43% | +56.61% | +55.00% | +56.38% |
| EBIT margin | +32.42% | +35.60% | +39.11% | +40.18% | +36.56% | +38.87% | +39.22% | +37.59% | +37.86% |
| Pre-tax margin | +41.73% | +26.58% | +28.25% | +29.01% | +27.67% | +28.30% | +28.49% | +29.01% | +27.54% |
| Net margin | +32.14% | +21.62% | +22.30% | +22.44% | +21.61% | +22.18% | +21.95% | +22.40% | +22.69% |
| Cost structure | |||||||||
| Cost of revenue / sales | +45.22% | +41.90% | +40.62% | +39.67% | +56.67% | +45.71% | +44.82% | +45.33% | +44.96% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +1.98% | +2.03% | +0.76% | +0.60% | 0.00% | +0.44% | +0.46% | +0.46% | +0.44% |
| Effective tax rate | +22.99% | +18.65% | +21.07% | +22.66% | +21.87% | +22.28% | +21.37% | +20.91% | +22.75% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +17.31% | +10.66% | +9.64% | +10.17% | +10.25% | +10.00% | +10.03% | +10.28% | +10.14% |
| Return on assets (ROA) | +4.84% | +2.95% | +3.12% | +3.20% | +3.04% | +3.13% | +3.13% | +3.22% | +3.19% |
| Return on capital (ROC) | +6.51% | +6.32% | +6.76% | +7.03% | +7.02% | +6.73% | +6.82% | +6.98% | +6.93% |
| Return on invested capital (ROIC) | +6.88% | +4.07% | +4.24% | +4.30% | +4.15% | +4.18% | +4.15% | +4.26% | +4.29% |
| Asset turnover | +15.07% | +13.65% | +13.97% | +14.27% | +14.07% | +14.10% | +14.27% | +14.35% | +14.04% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +32.14% | +21.62% | +22.30% | +22.44% | +21.61% | +22.18% | +21.95% | +22.40% | +22.69% |
| Asset turnover (× revenue / assets) | +15.07% | +13.65% | +13.97% | +14.27% | +14.07% | +14.10% | +14.27% | +14.35% | +14.04% |
| Equity multiplier (× assets / equity) | +357.29% | +361.20% | +309.26% | +317.75% | +337.04% | +319.86% | +320.12% | +319.68% | +318.43% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.15 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Fixed-asset turnover | 0.19 | 0.16 | 0.17 | 0.17 | — | — | — | — | — |
| Inventory turnover | 31.18 | 16.21 | 15.36 | 18.04 | — | — | — | — | — |
| Receivables turnover | 7.51 | 5.24 | 5.82 | 6.20 | 3.15 | — | — | — | — |
| Payables turnover | 7.56 | 6.26 | 5.85 | 5.37 | 7.71 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 48.57 | 69.59 | 62.67 | 58.91 | 115.89 | — | — | — | — |
| Days inventory outstanding (DIO) | 11.71 | 22.51 | 23.77 | 20.23 | — | — | — | — | — |
| Days payables outstanding (DPO) | 48.27 | 58.34 | 62.39 | 67.97 | 47.36 | — | — | — | — |
| Cash conversion cycle | 12.01 | 33.76 | 24.05 | 11.17 | 68.53 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.14 | 1.35 | 1.99 | 1.95 | 1.85 | 1.93 | 1.92 | 1.90 | 1.93 |
| FCF / Net income | -0.34 | -1.60 | -0.91 | -0.77 | -0.96 | -0.89 | -0.91 | -0.85 | -0.83 |
| FCF margin | -10.99% | -34.60% | -20.31% | -17.31% | -20.76% | -19.67% | -20.02% | -18.93% | -18.89% |
| OCF margin | +36.67% | +29.22% | +44.26% | +43.66% | +40.06% | +42.84% | +42.05% | +42.60% | +43.76% |
| CapEx / Revenue | +47.66% | +63.82% | +64.57% | +60.97% | +60.82% | +60.32% | +62.87% | +63.29% | +60.97% |
| CapEx / D&A | 2.94 | 3.73 | 3.88 | 3.62 | 3.50 | — | — | — | — |
| Stock-based comp / Revenue | 0.00% | 0.00% | 0.00% | +0.77% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 6.94 | 4.51 | 4.89 | 5.39 | 5.70 | 6.09 | 6.59 | 7.14 | 7.82 |
| EPS · basic | 6.94 | 4.51 | 4.89 | 5.39 | 5.70 | 6.05 | 6.61 | 7.10 | 7.77 |
| Book value / share | 40.10 | 42.27 | 50.76 | 52.98 | 55.57 | 60.66 | 64.23 | 67.25 | 80.58 |
| Tangible BV / share | 33.84 | 35.99 | 44.84 | 47.12 | 49.65 | 60.66 | 64.23 | 67.25 | 80.58 |
| Sales / share | 21.59 | 20.84 | 21.94 | 24.02 | 26.36 | 27.35 | 29.35 | 30.86 | 36.03 |
| Operating CF / share | 7.92 | 6.09 | 9.71 | 10.49 | 10.56 | 11.72 | 12.34 | 13.15 | 15.76 |
| Free cash flow / share | -2.37 | -7.21 | -4.46 | -4.16 | -5.47 | -5.38 | -5.87 | -5.84 | -6.81 |
| Dividends / share | 2.35 | 2.57 | 2.76 | 3.00 | 3.25 | 3.48 | 3.55 | 3.77 | 4.40 |
| Payout ratio | +33.89% | +56.95% | +56.36% | +55.66% | +56.98% | +57.43% | +55.14% | +54.56% | +53.82% |
| Retention ratio | +66.11% | +43.05% | +43.64% | +44.34% | +43.02% | +42.57% | +44.86% | +45.44% | +46.18% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | -3.51% | +11.66% | +10.63% | +9.74% | +4.33% | +6.66% | +6.14% | +15.29% | +7.48% |
| Gross profit · YoY | — | +2.32% | +14.12% | +12.41% | -21.20% | +30.61% | +9.49% | +1.62% | +20.39% | +7.70% |
| Profit | ||||||||||
| Operating income · YoY | — | +6.44% | +18.15% | +14.23% | +9.37% | +1.95% | +7.73% | +7.82% | +15.27% | +10.00% |
| EBITDA · YoY | — | +4.66% | +18.06% | +13.14% | +3.86% | +5.26% | +10.93% | +3.12% | +18.17% | +9.49% |
| Net income · YoY | — | -35.08% | +15.12% | +11.33% | +5.71% | +7.06% | +5.54% | +8.34% | +16.75% | +2.90% |
| Operating | ||||||||||
| EBIT · YoY | — | +5.97% | +22.67% | +13.65% | -0.16% | +10.92% | +7.62% | +1.72% | +16.13% | +9.59% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -35.01% | +8.43% | +10.22% | +5.75% | +6.77% | +8.23% | +8.44% | +9.43% | +1.50% |
| EPS · basic · YoY | — | -35.01% | +8.43% | +10.22% | +5.75% | +6.13% | +9.29% | +7.41% | +9.47% | +1.43% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $11.06B | $12.45B | $12.44B | $14.11B | $15.92B | $16.56B | $17.74B | $18.66B | $21.35B |
| Net debt | $10.95B | $12.37B | $12.11B | $13.99B | $15.8B | $16.33B | $17.49B | $18.4B | $21.05B |
| Net debt / EBITDA | 5.73 | 6.19 | 5.13 | 5.24 | 5.70 | 5.59 | 5.40 | 5.51 | 5.33 |
| Debt / equity | 1.52 | 1.62 | 1.27 | 1.37 | 1.47 | 1.39 | 1.42 | 1.41 | 1.36 |
| Debt / assets | +42.42% | +44.81% | +41.07% | +42.98% | +43.58% | +43.54% | +44.27% | +44.14% | +42.83% |
| Equity / assets | +27.99% | +27.69% | +32.34% | +31.47% | +29.67% | +31.26% | +31.24% | +31.28% | +31.40% |
| Coverage | |||||||||
| EBITDA / interest expense | 4.74 | 4.62 | 5.13 | 5.11 | 4.51 | 4.71 | 4.98 | 4.80 | 4.91 |
| Operating income / interest | 2.97 | 2.94 | 3.27 | 3.28 | 3.06 | 3.09 | 3.18 | 3.20 | 3.19 |
| Interest expense | $403M | $433M | $460M | $523M | $615M | $619.98M | $649.6M | $695.4M | $804.35M |
| Liquidity | |||||||||
| Current ratio | 0.73 | 0.44 | 0.65 | 0.39 | 0.46 | — | — | — | — |
| Quick ratio | 0.30 | 0.29 | 0.49 | 0.30 | 0.38 | — | — | — | — |
| Cash ratio | 0.05 | 0.03 | 0.15 | 0.04 | 0.03 | — | — | — | — |
| Working capital | -$587M | -$1.56B | -$762M | -$1.94B | -$2.56B | — | — | — | — |
| Working capital / revenue | -14.94% | -41.17% | -18.00% | -41.31% | -49.73% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).