American Water Works CoAWK +0.11%78 Return-on-Tangible-Asset is 2.29% as of Mar. 2026, which is 28% below its 10-year median of 3.19. GuruFocus rates AWK with a GF Score™ of 78/100 and a GF Value™ of $155.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 510 Utilities - Regulated companies, American Water Works Co ranks better than 50% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. American Water Works Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $784 Mil. American Water Works Co's average total tangible assets for the quarter that ended in Mar. 2026 was $34,197 Mil. Therefore, American Water Works Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.29%.
The historical rank and industry rank for American Water Works Co's Return-on-Tangible-Asset or its related term are showing as below:
AWK'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.42 Med: 3.19 Max: 5.25
Current: 3.3
During the past 13 years, American Water Works Co's highest Return-on-Tangible-Asset was 5.25%. The lowest was 2.42%. And the median was 3.19%.
AWK's Return-on-Tangible-Asset is ranked better than 50% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.3
vs AWK: 3.30
American Water Works Co (NYSE:AWK) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
American Water Works Co Return-on-Tangible-Asset Related Terms
American Water Works Co Return-on-Tangible-Asset Historical Data
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The historical data trend for American Water Works Co's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart
AWK vs WTRG, AWR, CWT: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where American Water Works Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.29% mean?
American Water Works Co (AWK) has a Return-on-Tangible-Asset of 2.29% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Water Works Co and its competitors. This is 28% below median its historical median of 3.19. Over the past decade, American Water Works Co's Return-on-Tangible-Asset has ranged from 2.42 to 5.25. According to the industry distribution chart, American Water Works Co ranks #255 out of 510 companies in the Utilities - Regulated industry, placing it in the top 50%.
Is American Water Works Co's Return-on-Tangible-Asset too high?
American Water Works Co's current Return-on-Tangible-Asset of 2.29% is 28% below median its 10-year median of 3.19. Over the past 10 years, this metric has ranged from a low of 2.42 to a high of 5.25. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.30. American Water Works Co's value of 2.29% is 30.6% below this industry median. Based on the distribution chart, American Water Works Co ranks #255 out of 510 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, American Water Works Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Return-on-Tangible-Asset compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #255 out of 510 companies for Return-on-Tangible-Asset. This puts American Water Works Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.30. American Water Works Co's value of 2.29% is 30.6% below this benchmark. Historically, American Water Works Co's own Return-on-Tangible-Asset has ranged from 2.42 to 5.25 over the past decade. While the company's 10-year median is 3.19 vs. the industry median of 3.30, American Water Works Co has consistently been below 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.30, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current Return-on-Tangible-Asset of 2.29% is 30.6% below 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current Return-on-Tangible-Asset is 2.29%, which is 28% below median its own 10-year median of 3.19. 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 (AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is $155.65, compared to a current price of $130.69 — trading 16% below its estimated fair value. The current Return-on-Tangible-Asset is 2.29%, which is 28% below median its 10-year median of 3.19 and 30.6% below the Utilities - Regulated industry median of 3.30. American Water Works Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For American Water Works Co (AWK), the current Return-on-Tangible-Asset is 2.29% 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 (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $130.69 is trading 16% below its estimated GF Value™ of $155.65.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
Return-on-Tangible-Asset: 2.29% (28% below median its 10-year median of 3.19)
GF Value™: $155.65 vs. price of $130.69 (16% below fair value)
Industry Position: 30.6% below the Utilities - Regulated median (#255 of 510)
No single metric tells the full story. See the AWK 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.
78GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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