American Water Works Co (MEX:AWK) Effective Interest Rate on Debt %: 4.13% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:AWK American Water Works Co Inc MEX:AWK
79 GF Score
Price MXN2,290.00
GF Value MXN2,761.26
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is American Water Works Co Effective Interest Rate on Debt %?

American Water Works Co MEX:AWK -1.04% 79 Effective Interest Rate on Debt % is 4.13% as of Mar. 2026. GuruFocus rates MEX:AWK with a GF Score™ of 79/100 and a GF Value™ of MXN2,761.26 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. American Water Works Co's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was MXN11,757 Mil. American Water Works Co's average total debt for the quarter that ended in Mar. 2026 was MXN284,846 Mil. Therefore, American Water Works Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.13%.


American Water Works Co  (MEX:AWK) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


American Water Works Co Effective Interest Rate on Debt % Related Terms


American Water Works Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for American Water Works Co's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

American Water Works Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.71 3.59 3.44 4.32 3.81

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
Effective Interest Rate on Debt % 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 3.99 3.92 4.10 4.10 4.13

MEX:AWK vs WTRG, AWR, CWT: Effective Interest Rate on Debt % Comparison

For the Utilities - Regulated Water subindustry, American Water Works Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where American Water Works Co's Effective Interest Rate on Debt % falls into.


MEX:AWK
79GF Score
American Water Works Co Inc MEX:AWK
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

American Water Works Co Effective Interest Rate on Debt % Calculation

American Water Works Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -11073.506/( (294273.927+286614.733)/ 2 )
=-1  *  -11073.506/290444.33
=3.81 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=262656.686 + 31617.241
=294273.927

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=231391.251 + 55223.482
=286614.733

American Water Works Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -11757.32/( (286614.733+283077.325)/ 2 )
=-1  *  -11757.32/284846.029
=4.13 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=231391.251 + 55223.482
=286614.733

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=231503.803 + 51573.522
=283077.325

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.13% mean?
American Water Works Co (MEX:AWK) has a Effective Interest Rate on Debt % of 4.13% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on American Water Works Co and its competitors.
Is American Water Works Co's Effective Interest Rate on Debt % too high?
American Water Works Co's current Effective Interest Rate on Debt % is 4.13%. Overall, American Water Works Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Effective Interest Rate on Debt % compare to WTRG and AWR?
American Water Works Co's Effective Interest Rate on Debt % of 4.13% 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 Effective Interest Rate on Debt % for an Utilities - Regulated company?
A good Effective Interest Rate on Debt % depends on the Utilities - Regulated industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on American Water Works Co and its competitors. American Water Works Co's current Effective Interest Rate on Debt % is 4.13%. 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 (MEX:AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN2,761.26, compared to a current price of MXN2,290.00 — trading 17.1% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.13%. American Water Works Co's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For American Water Works Co (MEX:AWK), the current Effective Interest Rate on Debt % is 4.13% 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 (MEX:AWK) Overvalued in 2026?

Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued. The current stock price of MXN2,290.00 is trading 17.1% below its estimated GF Value™ of MXN2,761.26. GuruFocus considers American Water Works Co to be Modestly Undervalued.

Key valuation signals for MEX:AWK:

  • Effective Interest Rate on Debt %: 4.13%
  • GF Value™: MXN2,761.26 vs. price of MXN2,290.00 (17.1% below fair value)
  • GF Score™: 79/100 with 3 warning signs

No single metric tells the full story. See the MEX:AWK 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.
79GF Score

Get the complete analysis for MEX:AWK

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,290.00
Price
MXN2,761.26
GF Value