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American Water Works CoAWK +2.06%76 Earnings Yield (Joel Greenblatt) % is 4.98% as of Jun. 2026, which is 9% above its 10-year median of 4.57. GuruFocus rates AWK with a GF Score™ of 76/100 and a GF Value™ of $153.81 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 510 Utilities - Regulated companies, American Water Works Co ranks worse than 65.88% on this metric.
American Water Works Co's Enterprise Value for the quarter that ended in Jun. 2026 was $42,016 Mil.
American Water Works Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $2,090 Mil. American Water Works Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 4.98%.
The historical rank and industry rank for American Water Works Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
AWK'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.07 Med: 4.57 Max: 6.12
Current: 4.92
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of American Water Works Co was 6.12%. The lowest was 3.07%. And the median was 4.57%.
AWK's Earnings Yield (Joel Greenblatt) % is ranked worse than 65.88% of 510
companies
in the Utilities - Regulated industry
Industry Median: 6.505
vs AWK: 4.92
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. American Water Works Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was -0.37%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
American Water Works Co (NYSE:AWK) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
American Water Works Co Earnings Yield (Joel Greenblatt) % Related Terms
American Water Works Co Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for American Water Works Co's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Water Works Co Earnings Yield (Joel Greenblatt) % Chart
For the Utilities - Regulated Water subindustry, American Water Works Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Water Works Co Earnings Yield (Joel Greenblatt) % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where American Water Works Co's Earnings Yield (Joel Greenblatt) % falls into.
American Water Works Co Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
American Water Works Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
American Water Works Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,090 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.98% mean?
American Water Works Co (AWK) has a Earnings Yield (Joel Greenblatt) % of 4.98% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on American Water Works Co and its competitors. This is near median its historical median of 4.57. Over the past decade, American Water Works Co's Earnings Yield (Joel Greenblatt) % has ranged from 3.07 to 6.12. According to the industry distribution chart, American Water Works Co ranks #336 out of 510 companies in the Utilities - Regulated industry, placing it in the top 65.9%.
Is American Water Works Co's Earnings Yield (Joel Greenblatt) % too high?
American Water Works Co's current Earnings Yield (Joel Greenblatt) % of 4.98% is near median its 10-year median of 4.57. Over the past 10 years, this metric has ranged from a low of 3.07 to a high of 6.12. The Utilities - Regulated industry median Earnings Yield (Joel Greenblatt) % is 6.51. American Water Works Co's value of 4.98% is 23.4% below this industry median. Based on the distribution chart, American Water Works Co ranks #336 out of 510 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, American Water Works Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Earnings Yield (Joel Greenblatt) % compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #336 out of 510 companies for Earnings Yield (Joel Greenblatt) %. This places American Water Works Co in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.51. American Water Works Co's value of 4.98% is 23.4% below this benchmark. Historically, American Water Works Co's own Earnings Yield (Joel Greenblatt) % has ranged from 3.07 to 6.12 over the past decade. While the company's 10-year median is 4.57 vs. the industry median of 6.51, American Water Works Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for an Utilities - Regulated company?
The median Earnings Yield (Joel Greenblatt) % among Utilities - Regulated companies is 6.51, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current Earnings Yield (Joel Greenblatt) % of 4.98% is 23.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median Earnings Yield (Joel Greenblatt) % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current Earnings Yield (Joel Greenblatt) % is 4.98%, which is near median its own 10-year median of 4.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Water Works Co stock overvalued right now?
Based on GuruFocus' analysis, American Water Works Co (AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is $153.81, compared to a current price of $134.01 — trading 12.9% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.98%, which is near median its 10-year median of 4.57 and 23.4% below the Utilities - Regulated industry median of 6.51. American Water Works Co's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For American Water Works Co (AWK), the current Earnings Yield (Joel Greenblatt) % is 4.98% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Water Works Co (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $134.01 is trading 12.9% below its estimated GF Value™ of $153.81.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
Earnings Yield (Joel Greenblatt) %: 4.98% (near median its 10-year median of 4.57)
GF Value™: $153.81 vs. price of $134.01 (12.9% below fair value)
Industry Position: 23.4% below the Utilities - Regulated median (#336 of 510)
No single metric tells the full story. See the AWK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
76GF Score
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