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Is American Water Works a Quiet Millionaire-Maker Stock?
The Motley Fool· 2025-12-09 18:05
Core Viewpoint - American Water Works has demonstrated impressive long-term performance, with a 15-year average annualized return of 11.6%, turning a $10,000 investment into $51,883, and $72,100 with reinvested dividends [2][3] Company Overview - Founded in 1886, American Water Works is the largest public water utility in the U.S., serving 14 million people across 24 states, yet it only accounts for less than 5% of the American population [4][5] - The company was spun out as a public entity in 2008 after being acquired by a German energy company in 2003, marking the largest utility IPO in U.S. history [4] Market Position and Growth Opportunities - The highly regulated nature of water utilities in the U.S. provides American Water Works with a competitive advantage, as it must secure approval from public utility commissions to operate in specific regions, limiting competition [8] - American Water Works has a return on equity of 10.46%, higher than the industry average of 9.61%, allowing for growth through customer acquisition rather than price increases [9] Recent Developments - In October, American Water Works announced a merger with Essential Utilities in an all-stock deal, creating a company valued at approximately $40 billion, which will add 1.9 million connections and $11.5 billion to its rate base [10][11] - The merger will enhance American Water Works' infrastructure with 227 water treatment plants and 29,500 miles of transmission and distribution systems [12] Financial Performance - The company reported a year-over-year earnings growth of 8.3% and a revenue increase of 9.7% in the last quarter, reaffirming its long-term growth target of 7% to 9% for both earnings and dividends [16] - American Water Works has a forward price-to-earnings ratio of 21.1, which is lower than the S&P 500 average of 27.5, and offers a dividend yield of 2.6%, significantly higher than the S&P 500 average [15] Dividend Policy - The company has increased its dividend by 143% over the past decade, with a payout ratio of 55%, indicating strong support for its dividend policy [16][17] - Management's commitment to growing its rate base annually aligns with its goal of maintaining a robust dividend for shareholders [17]
Itron and the City of Tucson Collaborate on New AMI Project to Enhance Water Conservation
Globenewswire· 2025-12-09 13:45
Core Insights - Tucson Water is partnering with Itron, Inc. to implement Advanced Metering Infrastructure (AMI) Essentials for water, aimed at enhancing water conservation efforts and improving operational efficiency [1][2][5] Group 1: Project Overview - The AMI project began in Q3 2025 and is expected to be fully completed by the end of 2029, aligning with Tucson's One Water 2100 Plan for sustainable water management [2][6] - Itron's solution includes 250,000 smart water communication modules, cellular Network-as-a-Service (NaaS), and Temetra meter data management, facilitating a comprehensive transformation of Tucson's water utility operations [2][4] Group 2: Key Benefits - Water Conservation: The AMI solution will help identify potential leaks and provide detailed consumption data, empowering customers to make informed water usage decisions [4][5] - Enhanced Customer Service: The system will proactively alert the city of unusual spikes in water usage, enabling swift responses to reduce water loss [4][5] - Improved Operational Efficiency: The modules will automatically collect and transmit data, optimizing resource use and saving time for the utility [4][6] Group 3: Technological Components - Itron Cellular 500W Modules will transform existing water meters into smart meters, collecting data every 15 minutes [4] - Itron's Cellular NaaS will manage the network and software, ensuring secure data collection and management [4] - Temetra, Itron's cloud-based platform, will unify meter readings and support proactive infrastructure management [4][6] Group 4: Strategic Importance - The deployment of AMI is seen as a crucial investment for Tucson Water, enhancing reliability and resilience in water management [5][6] - The initiative reflects Tucson's commitment to responsible water stewardship and community-driven conservation strategies [2][5]
Is American Water Works Stock Underperforming the Nasdaq?
Yahoo Finance· 2025-12-09 12:15
Company Overview - American Water Works Company, Inc. (AWK) has a market cap of $25.1 billion and serves approximately 3.5 million customers across 14 states, providing water and wastewater services [1][2] - The company operates extensive infrastructure, including treatment plants, wells, pumping stations, storage facilities, and thousands of miles of mains, catering to residential, commercial, industrial, and public sector clients [1] Stock Performance - AWK shares have declined 17.4% from their 52-week high of $155.50, and over the past three months, the shares have dipped 8.3%, underperforming the Nasdaq Composite's gain of over 8% during the same period [3] - Year-to-date, AWK stock is up 3.2%, lagging behind the Nasdaq's return of 21.9%, and has dropped nearly 3% over the past 52 weeks compared to the Nasdaq's increase of 18.6% [4] Financial Results - In Q3 2025, AWK reported an EPS of $1.94 and revenue of $1.45 billion, which were better than expected; however, shares fell 2.6% the following day due to concerns over rising costs and leverage [5] - Operating expenses increased by 7.3% to $837 million, and long-term debt rose by 4% to $13.02 billion [5] Analyst Sentiment - Analysts are cautious about AWK's prospects, with a consensus rating of "Hold" from 14 analysts, and a mean price target of $143.91, indicating a 12% premium to current levels [6]
Wall Street Sees a 38% Upside to H2O America (HTO)
Yahoo Finance· 2025-12-09 11:36
Group 1: Investment Potential - H2O America (NASDAQ:HTO) is identified as one of the best dividend stocks to buy, with an average price target suggesting a 27% upside and a Street high indicating a 38% upside [1][3] - The company reported a GAAP net income of $45.1 million for Q3 2025, reflecting a 17% increase compared to the prior-year quarter [3] Group 2: Recent Developments - H2O America's subsidiary, San Jose Water Company, along with three other water utilities, received approval to extend their 2026 Cost of Capital filing until May 1, 2027, which is expected to reduce administrative processing costs [2] - The company is making progress in expanding its presence in Texas through the acquisition of Quadvest and the Cibolo Valley wastewater system [3] Group 3: Financial Performance - For Q3 2025, H2O America reported diluted EPS of $1.27 and operating revenue of $240.6 million, marking increases of 9% and 7% respectively compared to the same quarter last year [3]
American Water Charitable Foundation supports Sacramento Food Bank and Family Services with $5,000 State Strategic Impact Grant
Prnewswire· 2025-12-08 16:20
Core Perspective - The American Water Charitable Foundation, in collaboration with California American Water, has provided a $5,000 grant to the Sacramento Food Bank and Family Services to combat food insecurity during the holiday season [1][4]. Group 1: Grant Details - The $5,000 State Strategic Impact Grant aims to support the Sacramento Food Bank and Family Services in providing meals and essential resources to families in need [1][3]. - This funding is part of the 2025 Keep Communities Flowing Grant Program, which focuses on three pillars: Water, People, and Communities [3]. Group 2: Community Impact - The grant will help deliver 15,000 meals to families across Sacramento County, addressing the critical issue of hunger in the community [2]. - Sacramento Food Bank and Family Services provide various programs, including food distribution and family support, assisting thousands of residents [2]. Group 3: Organizational Background - American Water is the largest regulated water and wastewater utility company in the U.S., serving over 14 million people across 14 states [5]. - The American Water Charitable Foundation has invested over $20 million since 2012 to support community organizations through grants and matching gifts [7]. - California American Water, a subsidiary of American Water, serves approximately 750,000 people with reliable water and wastewater services [8].
Kentucky American Water Proudly Recognizes American Water Charitable Foundation 2025 Workforce Readiness Grantees
Prnewswire· 2025-12-08 15:44
Core Insights - The American Water Charitable Foundation has awarded Workforce Readiness grants to two nonprofit organizations in Kentucky, supporting community development initiatives [1][4] - The grants are part of the Keep Communities Flowing Grant Program, which focuses on career readiness, financial literacy, youth development, and life skills training [1] Group 1: Grant Recipients - The Kentucky Chamber Foundation received funding for the Educator's Guide to Industry and the Leadership Institute for School Principals programs, aimed at enhancing educator engagement with key industries and providing leadership training [2] - The DV8 Kitchen Vocational Training Foundation was awarded support for the Speaking for a Purpose program, which focuses on public speaking skills for second-chance employees [3] Group 2: Organizational Impact - The Kentucky Chamber Foundation expressed gratitude for the partnership with Kentucky American Water, highlighting the importance of connecting educators with industry insights to strengthen the workforce and education pipeline [4] - DV8 Kitchen emphasized the unique nature of their partnership with the American Water Charitable Foundation, noting its positive impact on employees' lives through community outreach [4] - Kentucky American Water's President stated that the grants will assist in providing community programming and resources across Central Kentucky, with an expectation of long-term impact [4] Group 3: Company Overview - American Water is the largest regulated water and wastewater utility company in the U.S., serving over 14 million people across 14 states and 18 military installations [5] - Kentucky American Water, a subsidiary of American Water, provides services to approximately 527,000 people [6]
New Jersey American Water Issues Statewide Mandatory Conservation Notice
Prnewswire· 2025-12-05 22:20
Core Points - New Jersey American Water has issued a mandatory conservation notice for all customers in response to the New Jersey Department of Environmental Protection's Drought Warning [1][5] - The company emphasizes the importance of water conservation during this drought period, urging customers to limit nonessential water usage [2][3] - The Drought Watch was escalated to a Warning due to prolonged low precipitation and public concerns regarding water supply [2][3] Company Actions - New Jersey American Water is closely monitoring water supply levels and coordinating with operation centers to ensure uninterrupted service [5] - The company is providing guidelines for indoor water conservation to help customers save water and reduce their bills [4][5] - Assistance programs are available for customers who may need help managing their water bills during this period [5][6] Industry Context - The current drought conditions are linked to the impacts of climate change, highlighting the need for collective action in water conservation [3] - The company is leveraging redundancies in water sources to mitigate the risk of a more serious water shortage [5] - New Jersey American Water serves approximately 2.9 million people, making it the largest regulated water utility in the state [8]
American Water Announces Quarterly Dividend
Prnewswire· 2025-12-05 14:45
Core Points - American Water Works Company, Inc. declared a quarterly cash dividend of $0.8275 per share, payable on March 3, 2026, to shareholders of record as of February 10, 2026, continuing the increase in annualized dividends approved by the Board on April 30, 2025 [1] Company Overview - American Water is the largest regulated water and wastewater utility company in the United States, serving over 14 million people across 14 states and 18 military installations, with a history dating back to 1886 [4] - The company employs 6,700 professionals who utilize their expertise and the company's scale to deliver reliable and affordable drinking water and wastewater services [4]
Old Man Winter Arrives Early: New Jersey American Water Urges Customers to Prepare Pipes and Conserve Water
Prnewswire· 2025-12-04 21:42
Accessibility StatementSkip Navigation CAMDEN, N.J., Dec. 4, 2025 /PRNewswire/ -- Frigid temperatures have arrived earlier than usual across the Northeast, and New Jersey American Water is reminding customers to take steps now to protect their plumbing and avoid costly repairs. Preparing pipes before freezing conditions set in can help prevent damage and keep water bills manageable during the holiday season. Continue Reading Protect Your Pipes This Winter "Cold snaps can catch anyone off guard," said Ben Mo ...
California Water Service Group Marks Half a Decade as One of “America's Most Responsible Companies” by Newsweek
Globenewswire· 2025-12-04 21:15
Core Points - California Water Service Group has been recognized as one of "America's Most Responsible Companies" for the fifth consecutive year by Newsweek, highlighting its commitment to sustainability and corporate citizenship [1][4] - The company was one of four investor-owned water utilities included in the Energy & Utilities category of the 2026 list, which features the top 600 companies out of 2,000 based on revenue [2] - The selection for this year's recipients was based on 30 key performance indicators (KPIs) related to corporate social responsibility and sustainability, along with survey results from U.S. residents regarding their perceptions of the companies [3] Company Overview - California Water Service Group is the largest regulated water utility operating exclusively in the western United States, serving over 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas [5] - The company's mission is to enhance the quality of life for its customers, communities, employees, and stockholders through responsible investments in water and wastewater infrastructure and sustainability initiatives [6] - The company has received multiple accolades, including being named one of "America's Most Responsible Companies" and one of the "World's Most Trustworthy Companies" by Newsweek, as well as recognition as a USA Top Workplace and a Great Place to Work® [6]