Quality score · AWK · Utilities

Is American Water Works Company, Inc. a quality business?

American Water Works Company, Inc. (AWK) scored on five pillars from its reported financial statements, and ranked against 52 Utilities companies.

3.9/ 10
Low quality
as of October 17, 2026
Profitability
5.1 Average
Solvency
3.0 Weak
Growth
4.2 Average
Efficiency
2.6 Weak
Predictability
3.9 Weak
Strongest pillar: Profitability · Weakest: Efficiency

American Water Works Company, Inc. (AWK) scores 3.9 out of 10 as of , computed from its reported financial statements. That reads as low quality. The reading rests on profitability, and efficiency is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does American Water Works Company, Inc. have an economic moat?

Not enough data

We cannot judge American Water Works Company, Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How American Water Works Company, Inc. scores

The Quality Score for AWK stands at 3.9 out of 10 as of October 17, 2026, which puts American Water Works Company, Inc. in the low quality band. Scores this low usually reflect thin margins, a stretched balance sheet or an erratic record, and the pillars below show which. It rolls American Water Works Company, Inc.’s profitability, solvency, growth, efficiency and predictability into one number, each judged against the norms of its sector.

Set against 52 Utilities companies, American Water Works Company, Inc. lands at the 43rd percentile, in the lower half of the group, above the bottom quarter. For reference, the middle of the group scores 3.9 and a company needs 4.4 to reach its top quarter, which leaves American Water Works Company, Inc. in line with the median.

Pillar by pillar

Profitability

American Water Works Company, Inc.’s profitability score is 5.1 out of 10 (average). Against a median of 4.8 among 49 Utilities companies, that is in line with the group and the 58th percentile. An average profitability reading usually means the company earns a fair return without obvious pricing power, so the other pillars decide more of the story.

Solvency

Solvency scores 3.0 out of 10, which reads as weak. The median across 49 Utilities companies is 2.9, so American Water Works Company, Inc. is in line with its peers on this pillar and ranks at the 54th percentile. A low reading here is a question about resilience: how long the company could keep paying its obligations if earnings dropped.

Growth

Growth scores 4.2 out of 10, which reads as average. The median across 47 Utilities companies is 4.9, so American Water Works Company, Inc. is below its peers on this pillar and ranks at the 33rd percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.

Efficiency

On efficiency, American Water Works Company, Inc. scores 2.6, a weak reading. Its peers have a median of 3.0 across 51 Utilities companies, which places it in line with them, at the 22nd percentile. A low efficiency score is worth reading alongside profitability: earnings that do not convert into cash are worth less than they look.

Predictability

American Water Works Company, Inc.’s predictability score is 3.9 out of 10 (weak). Against a median of 3.5 among 51 Utilities companies, that is in line with the group and the 66th percentile. When results are this uneven, the averages behind the other pillars hide a lot of movement, and a longer history tells more than the latest year.

Strongest and weakest pillar

Profitability at 5.1 is American Water Works Company, Inc.’s best pillar and efficiency at 2.6 its weakest. The 2.5 point gap between them is worth keeping in mind when reading the overall. A profitability lead usually reflects something durable in the business model rather than a good year. Weak efficiency can reflect a heavy investment phase, which only pays off if the investment earns a return.

What would move the score

The pillar with the most room to move the score is growth. If it rose to the median of Utilities companies, 4.9, American Water Works Company, Inc.’s overall score would go from 3.9 to about 4.0. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and American Water Works Company, Inc. has a reading on every pillar.

American Water Works Company, Inc. and similar companies

For a fair comparison, start with companies of a similar size: the Utilities companies below are nearest to American Water Works Company, Inc. by market value, each scored on the same pillars.

What each pillar measures

Profitability

5.1 / 10

How much profit the company generates from its capital and sales.

Solvency

3.0 / 10

The company’s ability to service debt and meet its obligations.

Growth

4.2 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

2.6 / 10

How well assets and earnings convert into cash and output.

Predictability

3.9 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is American Water Works Company, Inc. a quality business?

On this reading American Water Works Company, Inc. scores 3.9 out of 10, which reads as low quality. Its strongest pillar is profitability, its weakest is efficiency. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does American Water Works Company, Inc. compare with other Utilities companies?

American Water Works Company, Inc. ranks at the 43rd percentile of the 52 Utilities companies Lemma publishes a score for. The median there is 3.9 and the top quarter starts at 4.4, against American Water Works Company, Inc.’s 3.9.

What does the AWK quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for AWK are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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