American Water Works Co (MIL:1AWK) Risk Assessment

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What is American Water Works Co Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of American Water Works Co is: Moderate Risk: Sensitive, better choose undervalued stock.

Competitive Comparison of American Water Works Co's Risk Assessment

For the Utilities - Regulated Water subindustry, American Water Works Co's Risk Assessment, along with its competitors' market caps and Risk Assessment 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's Risk Assessment Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where American Water Works Co's Risk Assessment falls into.

American Water Works Co (MIL:1AWK) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

American Water Works Co Risk Assessment Related Terms

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American Water Works Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » American Water Works Co Inc (MIL:1AWK) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

AWK:USA 0HEW:UK AWC:Germany A1WK34:Brazil AWK:Austria

Address

1 Water Street, Camden, NJ, USA, 08102-1658

Website

https://www.amwater.com

American Water Works is the largest investor-owned us 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.

American Water Works Co Headlines

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