American Water Works Company, I 🇺🇸
AWK • Technology • USA
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | AWK Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 85.8/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 61.5% Gross Margin | ✅ PASSED |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +6.2% YoY | ⚠️ IN-LINE |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 3.66x PEG Ratio | ⚠️ ELEVATED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 5.5x Net Leverage | ⚠️ WATCH |
| 6. Free Cash Flow Generation | Positive and compounding FCF | -$1.8B Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 22.7x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 0.1% Insider Equity | ℹ️ INSTITUTIONAL |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Institutional Superinvestor Interest | ℹ️ SCREENED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Technology sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 24.0x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 85.8/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: Largest publicly traded US water and wastewater utility.
Valuation Verdict: Trading at a Forward P/E of 22.7x and PEG ratio of 3.66x, American Water Works Company, I satisfies core fundamental screens for quality and durability.
📊 Frequently Asked Questions & Related Moat Stocks
1. What is American Water Works Company, I (AWK)'s Economic Moat Score in 2026?
In 2026, American Water Works Company, I (AWK) holds a proprietary MoatPicks Economic Moat Score™ of 85.8/100 (Wide Economic Moat). This 12-point fundamental audit evaluates AWK's 61.5% gross margin, -$1.8B free cash flow generation, +6.2% YoY revenue growth, and 5.5x Debt/EBITDA ratio. You can benchmark any stock's competitive durability interactively with our Economic Moat Score™ Checker.
2. Is AWK stock undervalued right now based on P/E and PEG ratio?
American Water Works Company, I (AWK) commands a quality valuation premium at a Forward P/E of 22.7x and PEG ratio of 3.66x, reflecting its 61.5% gross margin and fortress cash flows. At a share price of $138.3, investors can stress-test AWK's fair value using the MoatPicks Economic Moat Score™ Checker and FIRE compounding calculators. Model how compounding AWK fits your long-term retirement target in our FIRE Financial Independence Calculator.
3. Which superinvestors and 13F hedge funds own AWK stock?
American Water Works Company, I (AWK) is actively monitored across our 25 tracked 13F superinvestor portfolios and institutional quality screens. Institutional capital focuses on AWK's 61.5% gross margin, -$1.8B free cash flow, and 5.5x Debt/EBITDA balance sheet.