AWK

American Water Works Company, Inc.
UtilitiesUtilities - Regulated WaterNASDAQ
$123.27
-$0.61 (-0.49%)today
Conviction
6/ 10
Fair Value$138.50
Upside+23.40%
Signal1.96
Market Cap$26.8B
52W Range$121.28–$150.51
Next EarningsApr 29

Conviction History

Conviction Changes

Mar 18, 2026, 5:05 AM76conviction-rescore
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Price History

FAIR VALUE ANALYSISMonte Carlo · 5,000 runs · 76% valid
Fair Value$28.65
Current Price$136.86
Upside / Down-79.1%
P(Undervalued)0.0%
P(20%+ Up)0.0%
P(15%+ Down)99.6%

Fair Value Distribution — percentile bands

0.0% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

23.1%/yr

±6.5% · revenue growth to justify current price

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Bull Case

Water is the most regulated, inflation-protected utility — rate base grows ~10% annually with zero commodity exposure. Zero Iran war impact. Data center water demand is a long-term tailwind nobody prices in.

Bear Case

Rising rates compress utility multiples. At $134, above entry target $125. Tech -1 (below 50MA). The macro brief isn't a tailwind — it's neutral. Stagflation doesn't hurt AWK but higher-for-longer rates do.

Thesis Breakers

Rate increases denied by regulators, prolonged rate spike above 5%, M&A destroying capital discipline

Updated Mar 12

Research Feed

newsMar 6
Conviction: unchanged
AWK: Maryland rate approval + California infrastructure progress; 2026 EPS guidance affirmed

New Maryland rate approval and CA infrastructure work confirm regulatory support thesis. 2026 EPS guide $6.02-$6.12 (8% growth target) affirmed. Positive incremental datapoint.

sec_10kMar 3
Conviction: unchanged
AWK 2025 10-K: Infrastructure Investment Thesis & Regulatory Tailwinds

AWK: Largest US water utility with .7B regulated revenue, 3.6M customers, 24 states. 10-yr -48B capex plan driven by aging pipes + PFAS/lead compliance. Regulatory environment favorable for rate recov...