Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 0.1 | 0.2 |
| Securities | 0.0 | 0.0 |
| Debt | 15.8 | 16.0 |
| Net cash | -15.7 | -15.8 |
| Equity | 10.8 | 11.7 |
- Debt / EBITDA
- 5.54×
- Debt / equity
- 1.37×
- Leases (12/31/19)
- $99M
- Diluted shares
- 196M
- Book value / share
- $59.52
- Price / book
- 2.2×
- Net cash / share
- −$80.60
- Market cap
- $25.9B
- Enterprise value
- $41.7B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 6.2% | -4.9 pts | |
| Operating margin | 40.0% | +1.7 pts | |
| FCF margin | -19.0% | +14.8 pts | |
| Capex / revenue | 63.5% | +6.0 pts | |
| Estimated regulated rate base | ~$25.3B | – | |
| Military contract remaining revenue | ~$7.4B | 0% | |
| Water and wastewater pipe miles · 12/31/25 | ~55,000 | +1% | |
| Purchased water share · 12/31/25 | 7.0% | 0.0 pts | |
| New Jersey allowed return on equity · 9/15/26 | 9.5% | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About AWK
American Water owns and operates water and wastewater networks across 14 regulated U.S. states. Regulated utilities supplied most of 2025 revenue; military and municipal contracts form the smaller business.
- Concession License
State-approved service territories largely prevent direct competition for existing customers.
- Geographic Natural
A second set of pipes, treatment plants and pumps is costly to build beside the installed utility.
- Permits Rights Of Way
Access to source water requires permits, allocations, contracts or locally recognized water rights.
- Long Term Contracts
Military water systems are operated under 50-year contracts.
- Dec 31, 2021 · Gain +$748M
The sale of Homeowner Services produced a $748 million pretax gain. This disposal gain does not recur in the water utility. The consolidated disposal line also includes a $1 million regulated-business loss.
- Dec 31, 2021 · One-off charge −$45M
A $45 million contribution to the American Water Charitable Foundation accompanied the Homeowner Services sale. It reduced the benefit of that disposal and is separate from recurring utility costs.
- Dec 31, 2017 · Tax charge −$125M
Federal tax reform reduced the value of deferred tax assets in unregulated operations and added a $125 million non-cash tax charge. It does not show weaker demand or utility operations.
Ownership
Go deeper on AWK
- Compare stock research toolsFundamentals, valuation and screening platforms for AWK.19 tools
- See AWK's price chartNo price chart here yet. See price history and indicators.17 tools
- Read AWK's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
- Investing tool dealsCurrent discounts on research, charting and tracking tools.81 deals
On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 18.45 | 18.75 | 19.11 | 19.94 | 20.75 | 21.59 | 20.84 | 21.94 | 24.02 | 26.36 | 26.96 | +4.0%/yr | |
| Cash flow | 7.20 | 8.09 | 7.70 | 7.64 | 7.84 | 7.92 | 6.09 | 9.71 | 10.49 | 10.56 | 11.91 | +4.3%/yr | |
| Earnings | 2.61 | 2.38 | 3.15 | 3.43 | 3.90 | 6.94 | 4.51 | 4.89 | 5.39 | 5.70 | 5.76 | +9.0%/yr | |
| Free cash flow | -0.12 | 0.08 | -1.11 | -1.50 | -2.18 | -1.77 | -6.53 | -3.63 | -4.16 | -5.47 | -5.26 | – | |
| Capex | 7.32 | 8.01 | 8.81 | 9.14 | 10.01 | 9.69 | 12.62 | 13.34 | 14.65 | 16.03 | 17.16 | +9.1%/yr | |
| Dividends | 1.46 | 1.61 | 1.77 | 1.95 | 2.14 | 2.35 | 2.57 | 2.76 | 3.00 | 3.25 | 3.36 | +9.3%/yr | |
| Book value | 29.15 | 30.08 | 32.58 | 33.82 | 35.46 | 40.10 | 42.27 | 50.76 | 52.98 | 55.57 | 59.52 | +7.4%/yr | |
| Diluted shares (M) | 179 | 179 | 180 | 181 | 182 | 182 | 182 | 193 | 195 | 195 | 196 | +1.0%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 3.3 | 3.4 | 3.4 | 3.6 | 3.8 | 3.9 | 3.8 | 4.2 | 4.7 | 5.1 | 5.3 | +5.0%/yr | |
| Operating income | 1.1 | 1.3 | 1.1 | 1.2 | 1.2 | 1.2 | 1.3 | 1.5 | 1.7 | 1.9 | 2.0 | +6.3%/yr | |
| Net income | 0.5 | 0.4 | 0.6 | 0.6 | 0.7 | 1.3 | 0.8 | 0.9 | 1.1 | 1.1 | 1.1 | +10.1%/yr | |
| Free cash flow | -0.0 | 0.0 | -0.2 | -0.3 | -0.4 | -0.3 | -1.2 | -0.7 | -0.8 | -1.1 | -1.0 | – | |
| Buybacks | 0.1 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Dividends | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.5 | 0.5 | 0.6 | 0.6 | 0.7 | +10.3%/yr | |
| Net cash | -7.1 | -7.7 | -8.5 | -9.4 | -10.4 | -10.9 | -12.3 | -12.0 | -13.9 | -15.7 | -15.8 | −$8.7B | |
| Margins & returns (%) | |||||||||||||
| Operating margin | 32.9 | 37.3 | 32.0 | 33.6 | 33.0 | 30.4 | 33.6 | 35.5 | 36.7 | 36.6 | 36.9 | +3.7 pts | |
| Net margin | 14.2 | 12.7 | 16.5 | 17.2 | 18.8 | 32.1 | 21.6 | 22.3 | 22.4 | 21.6 | 21.3 | +7.4 pts | |
| FCF margin | -0.7 | 0.4 | -5.8 | -7.5 | -10.5 | -8.2 | -31.4 | -16.6 | -17.3 | -20.8 | -19.5 | -20.1 pts | |
| ROIC | 6.9 | 7.5 | 6.0 | 6.1 | 5.8 | 5.1 | 5.0 | 5.4 | 5.5 | 5.5 | 5.6 | -1.4 pts | |
| Return on equity | 9.0 | 7.9 | 9.7 | 10.1 | 11.0 | 17.3 | 10.7 | 9.6 | 10.2 | 10.3 | 9.7 | +1.3 pts | |
| R&D % of revenue | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 pts | |
| Stock pay % of revenue | 0.3 | 0.3 | 0.5 | 0.5 | 0.6 | 0.4 | 0.7 | 0.6 | 0.8 | 0.6 | – | +0.3 pts | |
| Capex % of revenue | 39.7 | 42.7 | 46.1 | 45.8 | 48.2 | 44.9 | 60.6 | 60.8 | 61.0 | 60.8 | 63.7 | +21.1 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Monopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Regulated Businesses91.9%3 claims
- Military and Contract Water Services (Other)8.1%2 claims
Moat claims
- Applies to
- Regulated Businesses
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
State-approved service territories largely prevent direct competition for existing customers. Regulators allow recovery of prudent costs and a return on invested capital, but decide how much can be earned.
New Jersey approved $68 million of annual revenue in September 2026, but its 9.5% allowed return is below the prior 9.6%; service protection remains strong while earnings are regulated.
- Estimated regulated rate base~$25.3B
- New Jersey allowed return on equity9.5%
- Municipal condemnation can transfer assets out of private ownership.
- Affordability pressure can lower allowed returns or delay cost recovery.
- Merger conditions can require concessions that reduce expected benefits.
- FilingAmerican Water 10-K, period ended 2025-12-31Feb 18, 2026
- FilingAmerican Water September 9, 2026 Form 8-K, New Jersey rate orderSep 9, 2026
- Applies to
- Regulated Businesses
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
A second set of pipes, treatment plants and pumps is costly to build beside the installed utility. Customers depend on the local network. The evidence supports a natural monopoly; it does not establish lower unit costs from greater network density.
About 55,000 pipe miles in 2025 and a $25.3 billion June 2026 rate-base approximation reinforce the installed network; pending recovery and absent comparable leakage data limit a widening judgment.
- Estimated regulated rate base~$25.3B
- Water and wastewater pipe miles~55,000+1%
- Old pipes and extreme weather raise repair and replacement costs.
- Capital spending can grow faster than cash generation or rate recovery.
- Cyber disruption can harm service and customer trust.
- Applies to
- Regulated Businesses
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
Access to source water requires permits, allocations, contracts or locally recognized water rights. These approvals limit entry and support service continuity, but water generally remains in public trust rather than company ownership.
Purchased water supplied 7% of regulated volumes in both 2024 and 2025; source access remains diversified, while California relies much more on third parties.
- Purchased water share7.0%0.0 pts
- Drought or environmental restrictions can reduce withdrawals.
- Contamination can make an approved source costly to treat.
- Courts or public agencies can change allocations or project permits.
- FilingAmerican Water 10-K, period ended 2025-12-31Feb 18, 2026
- Applies to
- Military and Contract Water Services (Other)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
Military water systems are operated under 50-year contracts. Their remaining revenue supports long service visibility, while government termination rights and periodic pricing reviews limit certainty about profit.
Military remaining revenue stayed near $7.4 billion through June 2026; the 19-installation September footprint includes a transfer of an existing Fort Lee contract.
- Military contract remaining revenue~$7.4B0%
- Military installations served19
- Government termination for convenience, default or poor performance
- Construction cost overruns or price resets that fail to cover inflation
- Changes in defense spending and installation priorities
- FilingAmerican Water 10-K, period ended 2025-12-31Feb 18, 2026
- FilingAmerican Water 10-Q, period ended 2026-06-30Jul 29, 2026
- Applies to
- Military and Contract Water Services (Other)
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
A long operating record at military installations gives AWK references and procurement experience. It supports credibility in bids, but public data do not prove higher win rates or better margins than its main rival.
AWK reports 19 installations in September 2026 versus ASUS's twelve 50-year base contracts and one shorter contract; the footprint shows experience, not an exclusive procurement position.
- Military contract remaining revenue~$7.4B0%
- Military installations served19
- Procurement or cybersecurity failures can remove eligibility to bid.
- Government price pressure can prevent experience from producing higher returns.
- Experienced rivals can win the next utility privatization award.
- FilingAmerican Water 10-K, period ended 2025-12-31Feb 18, 2026
- SourceAmerican States Water second-quarter 2026 results, military water contract footprintAug 5, 2026
Profile change log
- Oct 5, 2026 · analyst revision
Added the reported $99 million 2019 lease liability and current earnings, dividend and investment guidance. The 2021 Homeowner Services gain remains $748 million; the $747 million consolidated disposal line includes a separate $1 million loss. New York's 2022 exit and the later HOS closing adjustment also affect comparisons.
- Oct 5, 2026 · business change
Added the September New Jersey rate order: $68 million annual revenue increase and 9.5% allowed ROE. Added the September financing and non-unanimous Pennsylvania merger settlement. Recorded the 19-installation military footprint as an internal Fort Lee transfer rather than a new company-wide win.
- Oct 5, 2026 · analyst revision
Replaced Q2 2026 segment weights of 93.5793358% regulated and 6.4206642% Other with FY2025 weights from $4,723 million and $417 million of $5,140 million consolidated revenue. Added trajectories, peer comparison, management, debate and two linked end markets.
- Oct 5, 2026 · analyst revision
Reverified five claims across regulated and contracted water services. Reclassified the pipe claim from physical network density to natural monopoly because the filing supports costly network duplication, not proven density-driven unit costs. Replaced the broader contract market duopoly with competitive; government relationships confidence moves from 4 to 3 because the peer evidence does not show superior bid economics.
Industry & peers
Peer map
Peers appear on the map as their numbers are collected.
U.S. regulated water and wastewater utilities
Investor-owned U.S. utilities that supply drinking water or collect and treat wastewater under public utility rate regulation. Excludes bottled water, equipment sales, government-owned utility revenue and contracted military or municipal operations.
- American Water Works
- Essential Utilities
- American States Water
- California Water Service Group
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| AWK | 98 | – | 36.9% | |
| Industry median | 3 | 83 | – | – |
| Sector median | 3 | 83 | – | – |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Aging pipes and treatment assets create recurring investment demand; approved additions to rate base can raise future earnings.
- PFAS treatment and lead-pipe replacement add capital needs, skilled work and regulatory review.
- Thousands of small systems can seek private operators when financing or compliance capacity is limited; acquisitions depend on local consent and fair-value rules.
- Infrastructure riders and forward test years can recover costs sooner and reduce the cash burden of new investment.
- Population growth and new connections expand service demand; U.S. revenue leaves direct currency exposure low.
- Interest rates and capital-market access matter strongly because pipe renewal needs large outside funding; permitted returns adjust through rate cases rather than immediately.
- Affordability concerns, lower allowed returns and purchase-price disallowance can reduce investment economics despite local monopoly protection.
- Drought, source contamination, storms and supply restrictions can raise treatment costs or interrupt service; weather is a stronger volume driver than the economic cycle.
- Energy, chemicals, pipe and skilled-labor inflation raise costs before tariffs catch up; tariffs on materials can worsen this lag.
- Municipal condemnation, cyber failures and merger approval conditions can remove assets, harm trust or limit shareholder benefits.
Bulls & bears
Can AWK earn its allowed returns on a growing water asset base while funding investment and the Essential integration without unacceptable bill increases or capital dilution?
Arguments
What to watch
- 1Allowed versus earned state returns, especially New Jersey after its 9.5% reset
- 2Operating cash flow, capital expenditure and new debt/equity funding
- 3Approved rate-base recovery, acquisition conditions and merger approvals
Next check: Q3 2026 results and the Pennsylvania decision on the proposed Essential merger; no official results date was found as of October 5.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 2, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 98/100 by <a href="https://www.findmymoat.com/stocks/XNYS:AWK">Find My Moat</a> (as of September 2026)Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.