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American Water Works CoAWK +0.64%78 ROC (Joel Greenblatt) % is 5.46% as of Mar. 2026, which is 21% below its 10-year median of 6.93. 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 505 Utilities - Regulated companies, American Water Works Co ranks worse than 67.92% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. American Water Works Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.46%.
The historical rank and industry rank for American Water Works Co's ROC (Joel Greenblatt) % or its related term are showing as below:
AWK'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 6.48 Med: 6.93 Max: 9.97
Current: 6.86
During the past 13 years, American Water Works Co's highest ROC (Joel Greenblatt) % was 9.97%. The lowest was 6.48%. And the median was 6.93%.
AWK's ROC (Joel Greenblatt) % is ranked worse than 67.92% of 505
companies
in the Utilities - Regulated industry
Industry Median: 10.78
vs AWK: 6.86
American Water Works Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -2.80% per year.
American Water Works Co (NYSE:AWK) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
American Water Works Co ROC (Joel Greenblatt) % Related Terms
American Water Works Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for American Water Works Co's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
AWK vs WTRG, AWR, CWT: ROC (Joel Greenblatt) % Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where American Water Works Co's ROC (Joel Greenblatt) % falls into.
American Water Works Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 5.46% mean?
American Water Works Co (AWK) has a ROC (Joel Greenblatt) % of 5.46% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on American Water Works Co and its competitors. This is 21% below median its historical median of 6.93. Over the past decade, American Water Works Co's ROC (Joel Greenblatt) % has ranged from 6.48 to 9.97. According to the industry distribution chart, American Water Works Co ranks #343 out of 505 companies in the Utilities - Regulated industry, placing it in the top 67.9%.
Is American Water Works Co's ROC (Joel Greenblatt) % too high?
American Water Works Co's current ROC (Joel Greenblatt) % of 5.46% is 21% below median its 10-year median of 6.93. Over the past 10 years, this metric has ranged from a low of 6.48 to a high of 9.97. The Utilities - Regulated industry median ROC (Joel Greenblatt) % is 10.78. American Water Works Co's value of 5.46% is 49.4% below this industry median. Based on the distribution chart, American Water Works Co ranks #343 out of 505 companies in the Utilities - Regulated industry, which is below 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 ROC (Joel Greenblatt) % compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #343 out of 505 companies for ROC (Joel Greenblatt) %. This places American Water Works Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.78. American Water Works Co's value of 5.46% is 49.4% below this benchmark. Historically, American Water Works Co's own ROC (Joel Greenblatt) % has ranged from 6.48 to 9.97 over the past decade. While the company's 10-year median is 6.93 vs. the industry median of 10.78, 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 ROC (Joel Greenblatt) % for an Utilities - Regulated company?
The median ROC (Joel Greenblatt) % among Utilities - Regulated companies is 10.78, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current ROC (Joel Greenblatt) % of 5.46% is 49.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median ROC (Joel Greenblatt) % is 10.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current ROC (Joel Greenblatt) % is 5.46%, which is 21% below median its own 10-year median of 6.93. 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 $131.53 — trading 15.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 5.46%, which is 21% below median its 10-year median of 6.93 and 49.4% below the Utilities - Regulated industry median of 10.78. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For American Water Works Co (AWK), the current ROC (Joel Greenblatt) % is 5.46% 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 (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $131.53 is trading 15.5% below its estimated GF Value™ of $155.65.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
ROC (Joel Greenblatt) %: 5.46% (21% below median its 10-year median of 6.93)
GF Value™: $155.65 vs. price of $131.53 (15.5% below fair value)
Industry Position: 49.4% below the Utilities - Regulated median (#343 of 505)
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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