Stock analysis/share presentation ⬇️
Today we are talking about the company American Water Works: $AWK (-1,44 %)
What is American Water anyway 🧐
American Water Works is one of the leading companies in the water utility industry in the United States. The company operates in 16 states and operates water treatment plants, water mains, wastewater plants, and sewers.
The industry is highly regulated and has experienced steady growth in recent years. Consumption of water continues to increase, which is helping to keep water utilities growing.
KGV:
The company is currently valued at a P/E ratio of approximately 33.
Market capitalization: 🏦
The company has a current market capitalization of around 25 billion euros.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
American Water Works company currently has around 6500 employees.
Dividend yield: 💰
American Water Works pays its shareholders a dividend yield of just under 1.9% per share. This distribution is made on a quarterly basis. Dividends are paid in March, June, September and December.
Some history:
American Water Works was founded in 1886, when the company began building and operating water mains in the state of New Jersey. Over the years, the company has grown to become one of the largest and most highly rated water utilities in the United States.
American Water Works has expanded its business in several ways, including the acquisition of several water utilities and the opening of subsidiaries in other states. The company's stock first traded on the New York Stock Exchange in 1968.
Weaknesses of the share: 📉
- The company is dependent on the rates it charges for the use of its services, and there is a risk that regulators could reduce rates.
- The company's valuation is not exactly low, with a P/E ratio of around 33
- The company is also dependent on the grants and taxes it receives from state and local governments. There is a risk that these payments could be reduced, resulting in a reduction in the company's revenues.
- With a high level of net debt and relatively low EBITDA, the company has a weak financial situation.
Strengths of the share: 📈
- American Water Works is one of the largest companies in the water utility industry in the United States.
- The company has been in business for over 130 years and has a successful history.
- American Water Works pays its shareholders a nice and continuous dividend of currently just under 1.9%.
- American Water Works has an experienced leadership team that manages the company's operations.
- The company receives revenue from the rates it charges for the use of its services, as well as grants and taxes it receives from state and local governments.
Management of American Water: 🙋🏽♂️
American Water Works is led by an experienced management team consisting of President and CEO Susan Story, Executive Vice President and Chief Operating Officer Walter Lynch, Executive Vice President and Chief Customer Officer Joseph DiNunzio, and Executive Vice President and Chief Human Resources Officer James McCaffrey.
American Water's largest shareholders:
The company's shareholder structure is dominated by institutional investors. The company's largest owners are Vanguard, Blackrock, State Street, Geode Capital Management and JPMorgan Chase.
What is the company's business model: 🏁
American Water Works operates in 16 states and provides a wide range of water utility services. The company operates water treatment plants, water mains, wastewater plants, and sewers.
The company receives revenue from the rates it charges for the use of its services. The remainder of its revenues are derived from grants and taxes received by the Company from state and local governments.
What does the stock look like on the chart? (US dollars converted into euros) 📈📉
Let's take a look at the chart of this company. We are currently at a price of around €128.00. In recent months, the high here was around 152.00€. This was simply approached 3 times and each time sold off again. This means that at 152.00€ is a very strong resistance. In the meantime, the share has moved a little further away from this resistance. At first, the share held at around 140.00€. This was also a strong support zone for a long time, which now counts as resistance. This was finally broken through sustainably and it went further down. The share has now tried to form a floor at just under € 132.00 but this has not held either. It would now be important if American Water Works goes back towards 132.00€ and forms a floor there to continue to rise. Currently we are in no man's land and the next major support zone would be only at 120.00€. So very important now to find the bottom again and to run to the resistance at 140.00 € or even better to break through sustainably.
I am very curious where the journey will now go.
My conclusion on the company: 📝
American Water Works is one of the largest companies in the water utility industry in the United States. The company has a successful history and is led by an experienced management team.
American Water Works generates revenue from the rates it charges for the use of its services and from grants and taxes it receives from state and local governments.
Investors should be aware of the risks associated with investing in American Water Works, including the risk that regulation may change, rates may be reduced, or payments from state and local governments may be reduced.
Nevertheless, I personally find the company very exciting and have also had it on my watch list for an extremely long time. Currently, I am also waiting here but still something.
Very nice you find here the dividend yield of over 1.9%, but for me the company would be a little too expensive with a current P/E ratio of over 33.
I will continue to monitor the company and perhaps a tages strike.
Now I would like to hear your opinion in the comments on this stock. ⬇️
What do you think about American Water Works and did you already know this company?
Do you have this stock in your portfolio? 🤔
Feel free to let me know in the comments.
This is of course not investment advice but just my own opinion that I want to share with you! ⁉️
