Assessing American Water Works (AWK) Valuation After Kentucky Rate Approval and New Sustainability Recognition

Simply Wall St.

Yesterday

The latest rate approval for Kentucky American Water, combined with fresh sustainability accolades, gives investors a timely reason to revisit American Water Works Company (AWK) and its long term ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2593512640"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2593512640\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2593512640?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551000-choice1-main-header/1585186812028","is_english":true,"pubTime":"2025-12-21 14:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2593512640","market":"sg","top_or_hot":-1,"title":"Assessing American Water Works (AWK) Valuation After Kentucky Rate Approval and New Sustainability Recognition","media":"Simply Wall St.","content":"<div>\n<p>The latest rate approval for Kentucky American Water, combined with fresh sustainability accolades, gives investors a timely reason to revisit American Water Works Company (AWK) and its long term ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/assessing-american-water-works-awk-valuation-after-kentucky\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing American Water Works (AWK) Valuation After Kentucky Rate Approval and New Sustainability Recognition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing American Water Works (AWK) Valuation After Kentucky Rate Approval and New Sustainability Recognition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-21 14:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/assessing-american-water-works-awk-valuation-after-kentucky><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The latest rate approval for Kentucky American Water, combined with fresh sustainability accolades, gives investors a timely reason to revisit American Water Works Company (AWK) and its long term ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/assessing-american-water-works-awk-valuation-after-kentucky\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2106854487.HKD","symbol_name":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/assessing-american-water-works-awk-valuation-after-kentucky","article_id":"2593512640","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551000-choice1-main-header/1585186812028"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/assessing-american-water-works-awk-valuation-after-kentucky","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2593512640","pubTimestamp":1766297598,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The latest rate approval for Kentucky American Water, combined with fresh sustainability accolades, gives investors a timely reason to revisit American Water Works Company (AWK) and its long term earnings and dividend potential.\nSee our latest analysis for American Water Works Company.\nEven with the new Kentucky rate approval and fresh sustainability recognition in the mix, American Water Works Company’s 5.16% year to date share price return and modest 5.98% one year total shareholder return...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU1620156213.USD":"BNP PARIBAS AQUA \"C\" (USD) INC","LU2413666426.HKD":"BNP PARIBAS GLOBAL ENVIRONMENT \"C\" (HKD) ACC","LU1721428933.USD":"法巴全球经典环境基金RH MD Dis","LU2240825500.USD":"AZ EQUITY - WATER & RENEWABLE RESOURCES \"A-AZ\" (USD) ACC","BK4585":"ETF&股票定投概念","LU2125910336.SGD":"Natixis Thematics Water R/A SGD","AWK":"美国水务","LU2211815571.USD":"ALLIANZ POSITIVE CHANGE \"AT\" (USD) ACC","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU1721427968.SGD":"BNP PARIBAS AQUA \"CRH\" (SGDHDG) INC","LU2125910179.SGD":"Natixis Thematics Water H-R/A SGD","LU2413666004.HKD":"BNP PARIBAS AQUA \"CRH\" (HKDHDG) INC","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU2413666699.HKD":"BNP PARIBAS GLOBAL ENVIRONMENT \"CRH\" (HKDHDG) INC","LU2543165471.USD":"E FUND (HK) GLOBAL QUALITY GROWTH \"A\" (USD) ACC","BK4588":"碎股","LU1620156130.USD":"BNP PARIBAS AQUA \"C\" (USD) ACC","LU2506952337.HKD":"BNP PARIBAS CLIMATE IMPACT \"CRH\" (HKDHDG) ACC","LU2089279066.USD":"ALLIANZ GLOBAL WATER \"AT\" (USD) ACC","LU1543694498.USD":"法巴水资源基金RH MD Dis","LU1721428347.USD":"BNP PARIBAS CLIMATE IMPACT \"C\" (USD) ACC","LU0347712357.USD":"BNP PARIBAS GLOBAL ENVIRONMENT \"C\" (USD) ACC","LU2477742899.HKD":"BNP PARIBAS CLIMATE IMPACT \"C\" (HKD) ACC","IE00BD4GTT62.SGD":"Legg Mason ClearBridge Infrastructure Value A SGD-H (mdis) plus","IE00BD4GTV84.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) ACC","BK4172":"水公用事业","LU2506952410.USD":"BNP PARIBAS CLIMATE IMPACT \"CRH\" (USDHDG) ACC A","LU1917777945.USD":"安联专题基金Cl AT Acc","LU1923621640.USD":"Natixis Thematics Water R/A USD","LU2229751404.USD":"ALLIANZ GLOBAL WATER \"AT3\" (USD) ACC","LU1596574779.USD":"BNP PARIBAS AQUA \"C\" (USDHDG) ACC","LU2413665964.HKD":"BNP PARIBAS AQUA \"C\" (HKD) ACC","IE00BD4GTW91.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) INC","LU1165135440.EUR":"BNP Paribas Aqua Classic Cap EUR"},"translate_title":"在肯塔基州费率批准和新的可持续发展认可后评估美国自来水厂(AWK)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AWK":1.5},"content_text":"The latest rate approval for Kentucky American Water, combined with fresh sustainability accolades, gives investors a timely reason to revisit American Water Works Company (AWK) and its long term earnings and dividend potential. See our latest analysis for American Water Works Company. Even with the new Kentucky rate approval and fresh sustainability recognition in the mix, American Water Works Company’s 5.16% year to date share price return and modest 5.98% one year total shareholder return suggest steady, not explosive, momentum as investors weigh regulated growth against valuation and interest rate risk. If this kind of steady utility exposure appeals to you, it is also worth exploring other healthcare stocks where essential services, stable cash flows, and defensive characteristics can create interesting long term ideas. With steady mid single digit revenue and earnings growth, a premium multiple, and only a single digit discount to analyst targets, the key question now is whether American Water is quietly undervalued or if markets already price in its next leg of growth. Most Popular Narrative: 9.4% Undervalued With the latest fair value estimate sitting above American Water Works Company’s last close of $130.25, the prevailing narrative frames AWK as moderately mispriced in investors’ favor.  Heightened regulatory and societal focus on water quality and infrastructure modernization is accelerating rate case approvals and driving significant capital investment (e.g., $3.3 billion capital spend in 2025, requests for $111 million cumulative rate increases in CA by 2029). These factors enable predictable, above inflation rate increases and support sustainable earnings expansion.  Read the complete narrative. Want to see how steady mid single digit growth, rising margins, and a rich future earnings multiple combine into that fair value call, including the exact assumptions behind it? Read on to unpack the full blueprint behind this valuation story and why a relatively low discount rate still points to upside. Result: Fair Value of $143.78 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, rising debt costs and any stumble on key rate approvals could quickly erode that projected margin expansion and pressure AWK’s valuation case. Find out about the key risks to this American Water Works Company narrative. Another Angle on Valuation Looked at through its price to earnings ratio, American Water looks far less forgiving. Shares trade at about 22.9 times earnings, versus roughly 16 times for the global water utilities group and 18.2 times for peers, leaving limited room for execution missteps or rate surprises. That said, the current price is close to our fair ratio of 23.6 times earnings, which suggests the market may already be near where it should be, not wildly stretched or deeply cheap. The question, then, is whether investors are really being paid enough for the regulatory and financing risks ahead. See what the numbers say about this price — find out in our valuation breakdown. NYSE:AWK PE Ratio as at Dec 2025 Build Your Own American Water Works Company Narrative If you see the story differently or want to stress test the assumptions with your own inputs, you can build a personalized narrative in just minutes: Do it your way. A great starting point for your American Water Works Company research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? Instead of stopping with American Water, put Simply Wall Street’s Screener to work and uncover focused opportunities you might regret missing when the next leg higher begins.  Target reliable income streams by scanning these 12 dividend stocks with yields > 3% that can complement steady utility holdings with potentially stronger cash returns. Catch early growth stories by reviewing these 3634 penny stocks with strong financials that already show improving fundamentals instead of waiting for the crowd to notice. Strengthen your value watchlist by checking these 914 undervalued stocks based on cash flows, where mispriced cash flows may offer more upside than mature, fully priced names.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.The New Payments ETF Is Live on NASDAQ:Money is moving to real-time rails, and a newly listed ETF now gives investors direct exposure. Fast settlement. Institutional custody. Simple access.Explore how this launch could reshape portfoliosSponsored ContentNew: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}