American Water Works Co (STU:AWC) EBIT: €1,757 Mil (TTM As of Mar. 2026)


STU:AWC American Water Works Co Inc STU:AWC
82 GF Score
Price €114.15
GF Value €136.63
Valuation Modestly Undervalued
! 3 Warning Signs
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What is American Water Works Co EBIT?

American Water Works Co STU:AWC +2.61% 82 EBIT is €1,757 Mil as of Mar. 2026. GuruFocus rates STU:AWC with a GF Score™ of 82/100 and a GF Value™ of €136.63 (Modestly Undervalued). The stock has 3 warning signs investors should review.

American Water Works Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €365 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €1,757 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. American Water Works Co's annualized ROC % for the quarter that ended in Mar. 2026 was 3.25%. American Water Works Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.50%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. American Water Works Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.89%.


American Water Works Co  (STU:AWC) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

American Water Works Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1352.86 * ( 1 - 24.32% )/( (31184.664 + 31812.105)/ 2 )
=1023.844448/31498.3845
=3.25 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=30267.468 - 1265.628 - ( 83.692 - max(0, 4053.938 - 1871.114+83.692))
=31184.664

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=30503.36 - 935.065 - ( 118.505 - max(0, 3562.07 - 1318.26+118.505))
=31812.105

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

American Water Works Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1460.12/( ( (26184.494 + max(-703.696, 0)) + (26949.075 + max(-375.41, 0)) )/ 2 )
=1460.12/( ( 26184.494 + 26949.075 )/ 2 )
=1460.12/26566.7845
=5.50 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(337.33 + 95.648 + 298.046) - (1265.628 + 0 + 169.092)
=-703.696

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(333.89 + 98.61 + 280.26) - (935.065 + 0 + 153.105)
=-375.41

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

American Water Works Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1756.619/35923.958
=4.89 %

* 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 EBIT Related Terms


American Water Works Co EBIT Historical Data

* Premium members only.

The historical data trend for American Water Works Co's EBIT 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 EBIT Chart

American Water Works Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,808.06 1,360.30 1,518.55 1,797.31 1,739.60

American Water Works Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 382.95 456.91 555.50 379.18 365.03

STU:AWC vs WTRG, AWR, CWT: EBIT Comparison

For the Utilities - Regulated Water subindustry, American Water Works Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, American Water Works Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where American Water Works Co's EV-to-EBIT falls into.


STU:AWC
82GF Score
American Water Works Co Inc STU:AWC
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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American Water Works Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,757 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €1,757 Mil mean?
American Water Works Co (STU:AWC) has a EBIT of €1,757 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on American Water Works Co.
Is American Water Works Co's EBIT too high?
American Water Works Co's current EBIT is €1,757 Mil. Overall, American Water Works Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's EBIT compare to WTRG and AWR?
American Water Works Co's EBIT of €1,757 Mil can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Utilities - Regulated company?
A good EBIT depends on the Utilities - Regulated industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on American Water Works Co. American Water Works Co's current EBIT is €1,757 Mil. 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 (STU:AWC) is currently considered Modestly Undervalued. The stock's GF Value™ is €136.63, compared to a current price of €114.15 — trading 16.5% below its estimated fair value. The current EBIT is €1,757 Mil. American Water Works Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For American Water Works Co (STU:AWC), the current EBIT is €1,757 Mil as of Mar. 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 (STU:AWC) Overvalued in 2026?

Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued. The current stock price of €114.15 is trading 16.5% below its estimated GF Value™ of €136.63. GuruFocus considers American Water Works Co to be Modestly Undervalued.

Key valuation signals for STU:AWC:

  • EBIT: €1,757 Mil
  • GF Value™: €136.63 vs. price of €114.15 (16.5% below fair value)
  • GF Score™: 82/100 with 3 warning signs

No single metric tells the full story. See the STU:AWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


American Water Works Co Business Description

Address 1 Water Street, Camden, NJ, USA, 08102-1658
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.
82GF Score

Get the complete analysis for STU:AWC

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€114.15
Price
€136.63
GF Value