American Water Works Company, Inc. (AWK) fair value analysis

S&P 500 · Updated 2026-10-19

AWK price how computed

Last close $134.94 +$1.90 (+1.43%) since 2026-10-15

1M -0.71%3M +2.59%6M +1.27%1Y -5.77%

Forward Fair Value verdict

Undervalued

AWK is trading at a 10–25% discount to estimated fair value.

Based on TickrTrends' weekly Forward Fair Value model.

Last price: $128.88
Sector: Utilities
12-month range: $121.13–$141.59
Market cap: $25.6B
From 52-week high: -9.0%
Shares outstanding: 199M
Rank in Utilities by discount to fair value: #6 of 36

Last price is our 2026-10-19 weekly price; the chart runs through 2026-10-16.

American Water Works Company, Inc. is a utility company that provides water and wastewater services to residential, commercial, and industrial customers across the United States. The company operates water and wastewater systems in multiple states through its various subsidiaries and regional operations.

AWK currently ranks #6 of 36 Utilities stocks by discount to fair value. It has screened as Undervalued for 14 consecutive weekly runs.

Fundamentals (4 quarters) how computed

Market cap: $25.6B
P/E (trailing): 22x
Revenue (TTM): $5.28B
Net margin: 21.3%
EPS (TTM): $5.80
Gross margin: 75.5%
Debt / equity: 1.38
Revenue growth (3-yr avg): 5.4%
Shares outstanding: 199M

Derived indicators how computed

Quality grade: F
Margin trend: Contracting
52-week position: The lower-middle quarter of its range

Technicals how computed

RSI (14-day): 50 · neutral
50-day average: $134.79
200-day average: $131.87
Moving-average state: 50-day above 200-day (golden cross state); price between the averages

Dividends how computed

Paid, last 12 months: $3.45 per share (4 payments)
Yield on last price: 2.67%
Consecutive years of increases: 12
Last ex-dividend date: 2026-08-11
Last payment date: 2026-09-01

Earnings how computed

Next earnings report: 2026-10-28 (post-market)
Last 8 quarters vs consensus: 3 beat, 5 missed
Quarter by quarter: 2026-06 ▲ beat (+1.3%)
2026-03 ▼ miss (-7.3%)
2025-12 ▼ miss (-3.1%)
2025-09 ▲ beat (+3.2%)
2025-06 ▼ miss (-3.3%)
2025-03 ▼ miss (-1.9%)
2024-12 ▲ beat (+15.1%)
2024-09 ▼ miss (-2.2%)

Analyst consensus how computed

This is not TickrTrends' verdict.

Analyst ratings: 3 buy · 9 hold · 1 sell (13 analysts)
Consensus lean: Hold-leaning
Consensus price target: $141
Target vs last price: +9.4%

What our data shows for AWK

Our model validated 17 trailing price-to-earnings windows for AWK, built from quarterly earnings records.
Shares are trading in the middle of their 12-month price range of $121.13–$141.59.
The 14-day relative strength index sits at a neutral 50.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for AWK
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

Forward Fair Value applies a conservatively normalized historical price-to-earnings multiple to the consensus earnings estimate for the next full fiscal year; how TickrTrends computes it.

Recent AWK news

TickrTrends' derived news-sentiment signal for AWK is currently leaning positive, computed from recent coverage.

What is American Water Works’ (AWK) Economic Moat, and is it Widening or Narrowing? (insidermonkey.com, 2026-10-14)
TickrTrends take: American Water Works operates in the Utilities sector, where regulatory frameworks and infrastructure assets typically create durable competitive advantages that can support premium valuations. TickrTrends currently derives an Undervalued verdict for AWK, suggesting the market may not be fully pricing in the strength or trajectory of its economic moat. For valuation-focused readers, monitoring whether AWK's competitive advantages are expanding or contracting would be critical to assessing whether the current undervaluation represents a genuine opportunity or reflects legitimate concerns about moat sustainability.
American Water Works (AWK) Secures $68 Million Annualized Rate Increase in New Jersey (gurufocus.com, 2026-09-10)
TickrTrends take: American Water Works received regulatory approval for a $68 million annualized rate increase in New Jersey, which represents a significant revenue boost for the utilities operator. Given TickrTrends' current assessment that AWK is undervalued, this rate authorization adds a concrete earnings growth catalyst that investors monitoring the stock's valuation metrics should track through upcoming quarterly results. Rate increases from state regulators typically provide regulated utility companies like AWK with more predictable revenue streams, making valuation reassessments relevant as investors update their financial models.
American Water (AWK) and Essential Utilities Reach Non-Unanimous Settlement in Pennsylvania Merger Proceeding (gurufocus.com, 2026-09-01)
TickrTrends take: American Water's non-unanimous settlement in its Pennsylvania merger proceeding with Essential Utilities represents a significant development for a company that TickrTrends currently identifies as undervalued. Investors focused on valuation should monitor how this settlement affects the merger timeline and potential synergy realization, as these factors could influence the company's future earnings trajectory and justify current pricing. The resolution of regulatory hurdles in a major state proceeding typically reduces execution risk and could support the case for fair value appreciation in the utilities sector, where regulatory clarity often drives investor confidence.

What people are saying

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TickrTrends weekly updates

2026-10-19 — No material change this week: the verdict, bands and grades all held steady.
2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
2026-10-11 — No material change this week: the verdict, bands and grades all held steady.
2026-10-10 — No material change this week: the verdict, bands and grades all held steady.
2026-10-06 — No material change this week: the verdict, bands and grades all held steady.
2026-09-28 — American Water Works Company (AWK) showed a shift in its momentum indicator this week, moving from a C grade to no rating. The stock remains classified as undervalued according to TickrTrends' current valuation assessment within the utilities sector.
2026-09-21 — No material change this week: the verdict, bands and grades all held steady.
2026-09-17 — No material change this week: the verdict, bands and grades all held steady.

Frequently asked questions

Is AWK stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), AWK is trading at a 10–25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is AWK's TickrTrends verdict?

AWK's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does AWK compare to other Utilities stocks?

AWK ranks #6 of 36 Utilities stocks in TickrTrends' coverage by discount to fair value.

Is AWK overbought or oversold?

AWK's 14-day RSI is in neutral territory - neither overbought nor oversold.

Does AWK pay a dividend?

Yes. AWK paid $3.45 per share over the last twelve months (4 payments), a 2.67% yield on TickrTrends' last price, and has raised the annual total for 12 consecutive years. The last ex-dividend date was 2026-08-11.

When does AWK report earnings next?

AWK's next earnings report is scheduled for 2026-10-28 (post-market), per the published earnings calendar.

Does AWK usually beat earnings estimates?

Over its last 8 reported quarters AWK beat the consensus estimate 3 times and missed 5 times, by TickrTrends' comparison of reported and estimated EPS.

What do analysts say about AWK?

Of 13 analysts covering AWK, 3 rate it a buy, 9 a hold and 1 a sell - hold-leaning, with a consensus price target of $141 (+9.4% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.

All Utilities fair-value coverage →

Head-to-head comparisons

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