What 4 Analyst Ratings Have To Say About American Water Works Co

During the last three months, 4 analysts shared their evaluations of American Water Works Co (NYSE:AWK), revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $143.5, with a high estimate of $156.00 and a low estimate of $128.00. A decline of 2.21% from the prior average price target is evident in the current average.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive American Water Works Co is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to American Water Works Co. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Water Works Co compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of American Water Works Co's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of American Water Works Co's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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

Unveiling the Story Behind American Water Works Co

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.

American Water Works Co: A Financial Overview

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: American Water Works Co's remarkable performance in 3M is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 11.05%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: American Water Works Co's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 22.65%, the company showcases 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 2.72% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): American Water Works Co's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.86%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 1.41, American Water Works Co faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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