American Water Works Co (STU:AWC) ROCE %: 5.49% (As of Mar. 2026)


STU:AWC American Water Works Co Inc STU:AWC
83 GF Score
Price €113.95
GF Value €136.32
Valuation Modestly Undervalued
! 3 Warning Signs
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What is American Water Works Co ROCE %?

American Water Works Co STU:AWC -0.18% 83 ROCE % is 5.49% as of Mar. 2026. GuruFocus rates STU:AWC with a GF Score™ of 83/100 and a GF Value™ of €136.32 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. American Water Works Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 5.49%.

American Water Works Co  (STU:AWC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

American Water Works Co ROCE % Related Terms

American Water Works Co ROCE % Historical Data

* Premium members only.

The historical data trend for American Water Works Co's ROCE % 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 ROCE % Chart

American Water Works Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.23 6.08 6.15 6.64 6.38

American Water Works Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.40 6.73 8.48 5.76 5.49
STU:AWC
83GF Score
American Water Works Co Inc STU:AWC
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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American Water Works Co ROCE % Calculation

American Water Works Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1739.598/( ( (31352.65 - 3008.25) + (30267.468 - 4053.938) )/ 2 )
=1739.598/( (28344.4+26213.53)/ 2 )
=1739.598/27278.965
=6.38 %

American Water Works Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1460.12/( ( (30267.468 - 4053.938) + (30503.36 - 3562.07) )/ 2 )
=1460.12/( ( 26213.53 + 26941.29 )/ 2 )
=1460.12/26577.41
=5.49 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 5.49% mean?
American Water Works Co (STU:AWC) has a ROCE % of 5.49% as of Mar. 2026.
Is American Water Works Co's ROCE % too high?
American Water Works Co's current ROCE % is 5.49%. The Utilities - Regulated industry median ROCE % is 6.91. American Water Works Co's value of 5.49% is 20.5% below this industry median. Overall, American Water Works Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's ROCE % compare to WTRG and AWR?
American Water Works Co's ROCE % of 5.49% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.91. American Water Works Co's value of 5.49% is 20.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.91, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current ROCE % of 5.49% is 20.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current ROCE % is 5.49%. 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 (STU:AWC) is currently considered Modestly Undervalued. The stock's GF Value™ is €136.32, compared to a current price of €113.95 — trading 16.4% below its estimated fair value. The current ROCE % is 5.49% and 20.5% below the Utilities - Regulated industry median of 6.91. American Water Works Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For American Water Works Co (STU:AWC), the current ROCE % is 5.49% 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 (STU:AWC) Overvalued in 2026?

Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued. The current stock price of €113.95 is trading 16.4% below its estimated GF Value™ of €136.32. GuruFocus considers American Water Works Co to be Modestly Undervalued.

Key valuation signals for STU:AWC:

  • ROCE %: 5.49%
  • GF Value™: €136.32 vs. price of €113.95 (16.4% below fair value)
  • GF Score™: 83/100 with 3 warning signs
  • Industry Position: 20.5% below the Utilities - Regulated median

No single metric tells the full story. See the STU:AWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

American Water Works Co Business Description

Address 1 Water Street, Camden, NJ, USA, 08102-1658
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.
83GF Score

Get the complete analysis for STU:AWC

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€113.95
Price
€136.32
GF Value