American Water Works (AWK) 10-K Red Flags
Risk signals extracted deterministically from American Water Works’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (15)
- Receivables outpacing revenue: Accounts receivable grew +22.7% YoY vs revenue growth of +7.0%. The +15.7% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Going concern doubt: The term "going concern" appears in 8 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Material weakness in internal controls: The term "material weakness" appears in 24 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 5 filing(s).
- Restatement of financial statements: The term "restate" "financial statements" appears in 2 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.99x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Revenue grew +7.0% but receivables grew +22.7% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 2 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Substantial doubt about ability to continue.
- Ongoing high-severity risk language: Going concern doubt, Material weakness in internal controls, Restatement of financial statements.
- Composite risk: Elevated.
- Leverage debt/equity 0.87 (moderate).
- Receivables outpacing revenue: Accounts receivable grew +22.7% YoY vs revenue growth of +7.0%. The +15.7% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Going concern doubt: The term "going concern" appears in 8 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest annual report (10-K) filed Feb 18, 2026.
- Latest quarterly report (10-Q) filed Apr 29, 2026.
- 25 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference American Water Works; broad institutional reporting.
- Recent filers include THURSTON, SPRINGER, MILLER, HERD & TITAK, INC., BANKERS TRUST CO /IA/, Copeland Capital Management, LLC.
- 20 recent 13G passive institutional ownership notices.
Full AWK analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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