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American Water Works Co Inc AWK

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

American Water Works Reports Third-Quarter Earnings, Long-Term Earnings Guidance and Capital Outlook

Andrew Bischof, CFA, CPA Senior Equity Analyst

Analyst Note

| Andrew Bischof, CFA, CPA |

We are reaffirming our $123 per share fair value estimate after American Water Works reported third-quarter operating earnings of $1.53 per share, compared with $1.46 in the same year-ago period. Management reaffirmed 2021 earnings guidance of $4.18 to $4.28, in line with our expectations. The company introduced 2022 earnings guidance of $4.39 to $4.49, which reflects the sale of Homeowners Services Group. Our narrow moat and stable moat trend remain unchanged.

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Company Profile

Business Description

American Water Works is the largest investor-owned U.S. 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, which account for over 90% of earnings. After divesting the homeowner services group, the company's only remaining nonregulated business is water services for military bases.

Contact
1 Water Street
Camden, NJ, 08102-1658
T +1 856 955-4001
Sector Utilities
Industry Utilities - Regulated Water
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Classic Growth
Employees 7,000

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