Last refreshed: September 4, 2026 (US ET)
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AWK

Defensive

American Water Works Company, I

Utilities·Water Utilities·β 0.73Yield: Mid (1-3%)

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. The company also operates approximately 80 surface water treatment plants; 520 groundwater treatment plants; 170 wastewater treatment plants; 55,000 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,800 water and wastewater pumping stations; 1,100 treated water storage facilities; and 75 dams.

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Held by 1 AI ETF

AIEQ0.170%

as of Sep 4

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals1
Win rate100% (1/1)
Avg buy return+7.30%
AIEQnow 0.170% of fund2 signals

AIEQ · New entry · 1d

weight 0 → 0.220% (new)·stock up 7.3% in the 30 days before

Aug 2·entry $131.30·now $140.89Drifting

+7.30%
since Aug 2

AIEQ · Exit · 1d

weight 0.190% → 0 (exited)·stock up 8.8% in the 30 days before

Jul 1·entry $131.79·now $140.89

+6.90%
since Jul 1

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of Jul 5

The AI ETF AIEQ's decision to exit American Water Works aligns with the framework's 'Fail' verdict. The AI's move to liquidate its position is consistent with the framework's concerns about the company's financial health and lack of a margin of safety.

  • Circle of CompetenceWater utilities operate under stable, regulated unit economics, allowing for reasonably predictable long-term cash flow projections.
  • Economic MoatAmerican Water Works benefits from a strong economic moat derived from its natural monopoly status, high barriers to entry, and regulatory entitlements in its service areas.
  • ManagementThe provided data does not offer sufficient information to assess management's candor, capital allocation discipline, or skin in the game.
  • Financial HealthThe most recent ROE of 10.14% falls below the 15% 10-year average benchmark and detailed financial history is insufficient to confirm other health metrics like stable operating margins, manageable debt, or consistently positive owner earnings.
  • Margin of SafetyWith a P/E ratio of 23.93 and a P/B of 2.35 for a company with a 10.14% ROE, the current price appears to offer little to no margin of safety relative to a conservative estimate of intrinsic value.

American Water Works operates within a predictable circle of competence and possesses a strong economic moat due to its regulated utility status. However, the available financial data indicates a likely failure on the financial health criterion, particularly concerning its return on equity. Furthermore, the current valuation multiples suggest the stock offers no discernible margin of safety, making it an unsuitable investment under this framework.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.