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American States Water Company

**Company Profile**

**Name:** American Water Works Company, Inc.

**Symbol:** AWK (NYSE)

**Industry:** Water Utilities

**Key Financial Data**

**Market Cap:** $24.7 billion (as of March 8, 2023)

**Revenue (2022):** $4.4 billion

**Net Income (2022):** $616.2 million

**Earnings Per Share (2022):** $3.72

**Dividend Yield:** 1.86%

**Historical Performance**

* **5-Year Revenue Growth:** 6.7% CAGR

* **5-Year Earnings Growth:** 10.2% CAGR

* **5-Year Dividend Growth:** 9.5% CAGR

**Growth Drivers**

* **Population growth and urbanization:** Increasing demand for water services.

* **Aging infrastructure:** Need for investment in water distribution and treatment systems.

* **Environmental regulations:** Compliance with stricter water quality standards.

* **Acquisitions and partnerships:** Expansion into new markets and services.

**Earnings Outlook**

* **2023 Earnings Per Share Estimate:** $4.00-$4.10

* **2024 Earnings Per Share Estimate:** $4.30-$4.45

**Valuation**

* **Trailing Price-to-Earnings (P/E) Ratio:** 24.4

* **Forward Price-to-Earnings (P/E) Ratio:** 23.0

* **Price-to-Book (P/B) Ratio:** 2.6

**Analyst Ratings**

* **Buy:** 15

* **Hold:** 4

* **Sell:** 0

**Key Risks**

* **Regulatory uncertainty:** Changes in water regulations could impact revenue and profitability.

* **Climate change:** Extreme weather events and droughts could affect water availability.

* **Competition:** Competition from other water utilities and alternative water sources.

**Conclusion**

American Water Works is a well-established water utility with a strong track record of growth and dividend payments. The company benefits from favorable industry trends and has a solid financial position. However, investors should be aware of potential risks related to regulation, climate change, and competition.