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American Water Works Co GF Value Rank

: 5 (As of Today)
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American Water Works Co has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Utilities - Regulated Water subindustry, American Water Works Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Utilities - Regulated industry and Utilities sector, American Water Works Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where American Water Works Co's GF Value Rank falls into.



American Water Works Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of American Water Works Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


American Water Works Co Business Description

American Water Works Co logo
Address
1 Water Street, Camden, NJ, USA, 08102-1658
American Water Works is the largest investor-owned U.S. water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's only nonregulated business is water services for military bases, which operates under long-term contracts.
Executives
Griffith John C. officer: EVP Chief Financial Officer 1 WATER STREET CAMDEN NJ 08102-1658
Gallegos James H officer: EVP and General Counsel P O BOX 14720 MADISON WI 53708
Noble Adam W. officer: Chief Tech. & Innov. Officer 1 WATER STREET CAMDEN NJ 08102-1658
Norton Cheryl officer: SVP,Chief Envrn Off & East Div 1 WATER STREET CAMDEN NJ 08102-1658
Hauk Bruce A officer: Pres, Reg. Ops & Military Serv 1 WATER STREET CAMDEN NJ 08102-1658
Kirwan Kevin B officer: SVP, Chief Op Excel&Safety Off 1 WATER STREET CAMDEN NJ 08102-1658
Harris Kimberly J director
Kampling Patricia L director PO BOX 2568 MADISON WI 53701
Yates Lloyd M director 1N 2ND ST HARTSVILLE SC 29550
Hardwick M Susan officer: EVP - Finance C/O AMERICAN WATER WORKS COMPANY, INC. 1 WATER STREET CAMDEN NJ 08102-1658
Merante James S officer: Vice President and Treasurer 1 WATER STREET CAMDEN NJ 08102
Stavridis James G. director C/O NEUBERGER BERMAN MANAGEMENT LLC 605 THIRD AVENUE NEW YORK NY 10158-0180
Edwards Jeffrey N director ONE LIBERTY PLAZA NEW YORK NY 10006
Witherspoon Charles officer: Vice President and Treasurer 530 HERMAN O WEST DRIVE EXTON PA 19341
Swaminathan Radhakrishnan officer: SVP,Chief Tech.&Innov. Officer 1 WATER STREET CAMDEN NJ 08102-1658

American Water Works Co Headlines

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