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American Water Works Company, Inc.

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Share price of American Water Works Company trailed the return of the broader industry in the last twelve months. American Water Works’ is benefiting from its consistent investments in regulated operations and contribution from the acquired assets. The company’s inorganic growth strategy has been of great help, enabling it to add 10,700 customers to the existing base year to date. We believe consolidation is the need of the hour in the fragmented U.S. water utility space. A favorable rate hike decision is also helping the company to execute infrastructural development activities and pay regular dividends to shareholders. The company continues to improve its water and wastewater systems, which allows it to provide efficient services to its expanding customer base. However, stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines are persistent headwinds.

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