Is American Water Works Company, Inc. (AWK) Halal?

NYSE Utilities United States $26.7B
✗ NOT HALAL
Confidence: 90/100
American Water Works Company, Inc. (AWK) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 59.3% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. American Water Works Company, Inc. operates in the Utilities sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 59.3%
/ 30%
0.4%
/ 30%
6.1%
/ 30%
1.75%
/ 5%
✗ NOT HALAL
DJIM 59.3%
/ 33%
0.4%
/ 33%
6.1%
/ 33%
1.75%
/ 5%
✗ NOT HALAL
MSCI 44.9%
/ 33%
0.3%
/ 33%
4.6%
/ 33%
1.75%
/ 5%
✗ NOT HALAL
S&P 59.3%
/ 33%
0.4%
/ 33%
6.1%
/ 33%
1.75%
/ 5%
✗ NOT HALAL
FTSE 44.9%
/ 33%
0.3%
/ 33%
4.6%
/ 50%
1.75%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
24.1
Forward: 20.8
EPS
$5.69
Dividend Yield
242.0%
Payout: 57.1%
P/B Ratio
2.5
EV/EBITDA
15.2
EV: $42.5B
Revenue
$5.1B
Growth: 5.8%
Beta
0.8
Low volatility
Current Ratio
0.5

Profitability

Gross Margin 60.7%
Operating Margin 32.2%
Net Margin 21.6%
Return on Equity (ROE) 10.5%
Return on Assets (ROA) 3.5%

Cash Flow & Balance Sheet

Operating Cash Flow$2.1B
Free Cash Flow-$1.2B
Total Debt$15.9B
Debt-to-Equity147.0
Current Ratio0.5
Total Assets$35.4B

Price & Trading

Last Close$137.51
50-Day MA$132.44
200-Day MA$136.05
Avg Volume1.7M
Beta0.8
52-Week Range
$121.28
$155.50

About American Water Works Company, Inc. (AWK)

CEO
Mr. John C. Griffith
Employees
7,000
Sector
Utilities
Industry
Utilities - Regulated Water
Country
United States
Exchange
NYSE
Market Cap
$26.7B
Currency
USD

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. In addition, it offers water and wastewater services to 14 states serving approximately 3.6 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. The company was founded in 1886 and is headquartered in Camden, New Jersey.

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Frequently Asked Questions

Is American Water Works Company, Inc. (AWK) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), American Water Works Company, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is American Water Works Company, Inc.'s debt ratio?

American Water Works Company, Inc.'s debt ratio is 59.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 44.9%.

What are American Water Works Company, Inc.'s key financial metrics?

American Water Works Company, Inc. has a market capitalization of $26.7B, trailing P/E ratio of 24.1, and revenue of $5.1B. The company maintains a gross margin of 60.7% and a net margin of 21.6%. Return on equity stands at 10.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.