Valuation check: AWK's ROE is 9.67%, below the Utilities sector average of 11.31%.
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+ Follow9.67%
Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
American Water Works Inc.'s return on equity stands at 9.67%. That is below the Utilities sector average of 11.31%. Stockcircle updates this page with the newest filings so you can track how the metric evolves quarter by quarter.
American Water Works Inc. sits lower the Utilities benchmark (11.31%) with a ROE of 9.67%. That is roughly 14.5% below the sector mean. Peer context matters because what looks expensive or cheap in absolute terms can be normal for the sector.
A ROE of 9.67% for American Water Works Inc. means each unit of related capital or sales is generating that return rate. Higher is usually better for profitability metrics, but extremely high figures can reflect one-time items or thin equity bases. Review several years of data on this page before extrapolating.
The history chart shows how American Water Works Inc.'s ROE evolved across reporting periods, while the comparison chart places AWK next to similar companies. Use both: a rising metric that still lags peers tells a different story than a rising metric that already leads the group. Growth charts, when available, highlight acceleration or slowdown.
Yes — within Utilities, ROE is commonly used to spot outliers. American Water Works Inc.'s reading of 9.67% (sector avg 11.31%) is a starting point; confirm whether differences come from growth, margins, accounting choices, or one-time items before treating an outlier as a buy or sell signal.