American Water Works Message Board

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Non-Tech : American Water Works

AWK 126.15

-1.8%

9:30 AM EST

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From: Vedp	6/17/2023 1:39:51 AM
	of 2

Why is American water work trading at a significant premium when debt is rising and the company makes negative cash. I understand the customer base is stable since demand for water will always be there but the profits generated is not generating enough cash to cover all outflows. As result company is relying more on debt. Debt/capital is in the 60s now and current liabilities is growing 2x quicker than EBIT. Not sure how they can maintain this in the long run (2-3 yrs) and remain financially viable. Would think that such high-risk circumstances would lead to a discount in the trading price. What factors might the market be considering that I am overlooking?

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