Aureus
FRed Flag

American Water Works Company, I(AWK)

F

Financial data as of Dec 31, 2025Declining · Utilities

FCF Margin-24.2%Free Cash Flow / Revenue
Cash Conversion185.3%Operating CF / Net Income
Free Cash Flow-$1.2B
Revenue$5.1B
Net Cash-$15.8BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.46Tight short-term liquidity
YoY FCF Growth-49.2%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 (0.46)
→
-1Negative FCF in 4 of last 4 quarters
→
-1Significant YoY FCF decline (-49.2%)
→
-1Only 0 positive quarters recently
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (185%)

Concerns

  • Negative FCF margin (-24.2%)
  • Net debt position ($15.8B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 0 positive FCF quarters recently
  • Significant YoY FCF decline (-49.2%)
Heavy CapEx — Operating cash flow is strong (40% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-24.2%
Net Margin21.6%
Operating CF Margin40.1%
CapEx Ratio64.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$15.8BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.46Tight liquidity
Debt / Equity1.47Moderate leverage

Quarterly FCF Trend

-49.2% YoYDeclining (-49.2%)

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-$1.2B
Revenue$5.1B
Net Income$1.1B
Operating Cash Flow$2.1B
Capital Expenditure$3.3B
FCF Margin-24.2%
Cash Conversion Rate185.3%
Net Margin21.6%
Total Debt$15.9B
Total Cash$98.0M
Net Cash-$15.8B
Current Ratio0.46
Debt / Equity1.47
Debt / FCFN/A
YoY FCF Growth-49.2%
Positive Quarters0 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
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
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