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American Water Works Co (NYSE:AWK) Profitability Rank

: 8 (As of Jun. 2023)
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American Water Works Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

American Water Works Co's Operating Margin % for the quarter that ended in Jun. 2023 was 39.38%. As of today, American Water Works Co's Piotroski F-Score is 6.


Competitive Comparison

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

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

* The bar in red indicates where American Water Works Co's Profitability Rank falls in comparison to its industry or sector. The grey bar indicates the Profitability Rank's extreme value range as defined by GuruFocus.



American Water Works Co Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

American Water Works Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

American Water Works Co's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=432 / 1097
=39.38 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

American Water Works Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

American Water Works Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.

4. Consistency of the profitability

5. Predictability Rank


American Water Works Co Profitability Rank Related Terms

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American Water Works Co (NYSE:AWK) 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 nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
Executives
Laurie P. Havanec director ONE CARRIER PLACE, FARMINGTON CT 06032
Michael Marberry director 3050 SPRUCE STREET, ST. LOUIS MO 63103
John C. Griffith officer: EVP Chief Financial Officer 1 WATER STREET, CAMDEN NJ 08102-1658
James H Gallegos officer: EVP and General Counsel 1 WATER STREET, CAMDEN NJ 08102-1658
Adam W. Noble officer: Chief Tech. & Innov. Officer 1 WATER STREET, CAMDEN NJ 08102-1658
Cheryl Norton officer: SVP,Chief Envrn Off & East Div 1 WATER STREET, CAMDEN NJ 08102-1658
Bruce A Hauk officer: Pres, Reg. Ops & Military Serv 110 W. TAYLOR STREET, SAN JOSE CA 95110
Kevin B Kirwan officer: SVP, Chief Op Excel&Safety Off 1 WATER STREET, CAMDEN NJ 08102-1658
Kimberly J Harris director
Lloyd M Yates director 1N 2ND ST, HARTSVILLE SC 29550
Patricia L Kampling director PO BOX 2568, MADISON WI 53701
M Susan Hardwick officer: EVP - Finance C/O AMERICAN WATER WORKS COMPANY, INC., 1 WATER STREET, CAMDEN NJ 08102-1658
James S Merante officer: Vice President and Treasurer 1 WATER STREET, CAMDEN NJ 08102
Jeffrey N Edwards director ONE LIBERTY PLAZA, NEW YORK NY 10006
James G. Stavridis director C/O NEUBERGER BERMAN MANAGEMENT LLC, 605 THIRD AVENUE, NEW YORK NY 10158-0180