American Water Works Company (NYSE:AWK) Has Gifted Shareholders With A Fantastic 204% Total Return On Their Investment
NYSE:AWK) shareholders would be well aware of this, since the stock is up 176% in five years. Meanwhile the share price is 1.7% higher than it was a week ago.” data-reactid=”28″>When you buy shares in a company, it’s worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term American Water Works Company, Inc. (NYSE:AWK) shareholders would be well aware of this, since the stock is up 176% in five years. Meanwhile the share price is 1.7% higher than it was a week ago.
See our latest analysis for American Water Works Company ” data-reactid=”29″> See our latest analysis for American Water Works Company
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, American Water Works Company managed to grow its earnings per share at 6.9% a year. This EPS growth is slower than the share price growth of 22% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that’s hardly shocking given the track record of growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
earnings, revenue and cash flow.” data-reactid=”49″>We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of American Water Works Company’s earnings, revenue and cash flow.
What About Dividends?
A Different Perspective
2 warning signs for American Water Works Company (of which 1 doesn’t sit too well with us!) you should know about.” data-reactid=”53″>American Water Works Company provided a TSR of 16% over the last twelve months. But that return falls short of the market. It’s probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 25% over five years. It’s quite possible the business continues to execute with prowess, even as the share price gains are slowing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we’ve spotted 2 warning signs for American Water Works Company (of which 1 doesn’t sit too well with us!) you should know about.
list of companies. (Hint: insiders have been buying them).” data-reactid=”54″>If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”56″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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