Aureus
FRed Flag

American Water Works Company, I(AWK)

F

Financial data as of Dec 31, 2024Declining · Utilities

FCF Margin-20.6%Free Cash Flow / Revenue
Cash Conversion194.6%Operating CF / Net Income
Free Cash Flow-$963.0M
Revenue$4.7B
Net Cash-$14.0BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.39Tight short-term liquidity
YoY FCF Growth-90.7%0 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Current ratio below 1.0 (0.39)
→
-1Negative FCF in 4 of last 4 quarters
→
-1Significant YoY FCF decline (-90.7%)
→
-1Only 0 positive quarters recently
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (195%)

Concerns

  • Negative FCF margin (-20.6%)
  • Net debt position ($14.0B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 0 positive FCF quarters recently
  • Significant YoY FCF decline (-90.7%)
  • Significant FCF decline (-90.7% YoY)
Heavy CapEx — Operating cash flow is strong (44% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-20.6%
Net Margin22.4%
Operating CF Margin43.7%
CapEx Ratio64.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$14.0BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.39Tight liquidity
Debt / Equity1.37Moderate leverage

Quarterly FCF Trend

-90.7% YoYDeclining (-90.7%)

Free cash flow per quarter

Sector Comparison — Utilities

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAmerican Water Works Company, I
SectorUtilities
Free Cash Flow-$963.0M
Revenue$4.7B
Net Income$1.1B
Operating Cash Flow$2.0B
Capital Expenditure$3.0B
FCF Margin-20.6%
Cash Conversion Rate194.6%
Net Margin22.4%
Total Debt$14.1B
Total Cash$96.0M
Net Cash-$14.0B
Current Ratio0.39
Debt / Equity1.37
Debt / FCFN/A
YoY FCF Growth-90.7%
Positive Quarters0 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Utilities: An Entire Sector Failing Cash Flow

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Feb 13, 2026
WECSODUKEIX+6