American Water Works CoSTU:AWC +0.09%83 Pretax Margin % is 21.46% as of Mar. 2026, which is 20% below its 10-year median of 26.88. GuruFocus rates STU:AWC with a GF Score™ of 83/100 and a GF Value™ of €136.45 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 503 Utilities - Regulated companies, American Water Works Co ranks better than 85.69% on this metric.
The historical rank and industry rank for American Water Works Co's Pretax Margin % or its related term are showing as below:
STU:AWC'
s Pretax Margin % Range Over the Past 10 Years
Min: 22.88 Med: 26.88 Max: 41.73
Current: 27.11
STU:AWC's Pretax Margin % is ranked better than 85.69% of 503
companies
in the Utilities - Regulated industry
Industry Median: 12.07
vs STU:AWC: 27.11
American Water Works Co (STU:AWC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
American Water Works Co Pretax Margin % Related Terms
American Water Works Co Pretax Margin % Historical Data
* 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.
STU:AWC vs WTRG, AWR, CWT: Pretax Margin % Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where American Water Works Co's Pretax Margin % falls into.
* 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 (STU:AWC) has a Pretax Margin % of 21.46% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Water Works Co and its competitors. This is 20% below median its historical median of 26.88. Over the past decade, American Water Works Co's Pretax Margin % has ranged from 22.88 to 41.73. According to the industry distribution chart, American Water Works Co ranks #72 out of 503 companies in the Utilities - Regulated industry, placing it in the top 14.3%.
Is American Water Works Co's Pretax Margin % too high?
American Water Works Co's current Pretax Margin % of 21.46% is 20% below median its 10-year median of 26.88. Over the past 10 years, this metric has ranged from a low of 22.88 to a high of 41.73. The Utilities - Regulated industry median Pretax Margin % is 12.07. American Water Works Co's value of 21.46% is 77.8% above this industry median. Based on the distribution chart, American Water Works Co ranks #72 out of 503 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, American Water Works Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Pretax Margin % compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #72 out of 503 companies for Pretax Margin %. This places American Water Works Co in the top 14% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 12.07. American Water Works Co's value of 21.46% is 77.8% above this benchmark. Historically, American Water Works Co's own Pretax Margin % has ranged from 22.88 to 41.73 over the past decade. While the company's 10-year median is 26.88 vs. the industry median of 12.07, American Water Works Co has consistently been above 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 Pretax Margin % for an Utilities - Regulated company?
The median Pretax Margin % among Utilities - Regulated companies is 12.07, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current Pretax Margin % of 21.46% is 77.8% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median Pretax Margin % is 12.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current Pretax Margin % is 21.46%, which is 20% below median its own 10-year median of 26.88. 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 €136.45, compared to a current price of €116.25 — trading 14.8% below its estimated fair value. The current Pretax Margin % is 21.46%, which is 20% below median its 10-year median of 26.88 and 77.8% above the Utilities - Regulated industry median of 12.07. American Water Works Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For American Water Works Co (STU:AWC), the current Pretax Margin % is 21.46% 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 €116.25 is trading 14.8% below its estimated GF Value™ of €136.45.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for STU:AWC:
Pretax Margin %: 21.46% (20% below median its 10-year median of 26.88)
GF Value™: €136.45 vs. price of €116.25 (14.8% below fair value)
Industry Position: 77.8% above the Utilities - Regulated median (#72 of 503)
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 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.
83GF Score
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