ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
NYSE:WTRG • US29670G1022
39.97 USD
+0.19 (+0.48%)
At close: Feb 27, 2026
39.96 USD
-0.01 (-0.03%)
Pre-Market: 3/2/2026, 4:39:10 AM
Taking everything into account, WTRG scores 5 out of 10 in our fundamental rating. WTRG was compared to 14 industry peers in the Water Utilities industry. While WTRG belongs to the best of the industry regarding profitability, there are concerns on its financial health. WTRG has a decent growth rate and is not valued too expensively. WTRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year WTRG was profitable.
- WTRG had a positive operating cash flow in the past year.
- WTRG had positive earnings in each of the past 5 years.
- In the past 5 years WTRG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of WTRG (3.17%) is better than 71.43% of its industry peers.
- WTRG has a better Return On Equity (8.99%) than 64.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.86%, WTRG is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WTRG is in line with the industry average of 5.02%.
- The last Return On Invested Capital (3.86%) for WTRG is above the 3 year average (3.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.99% | ||
| ROIC | 3.86% |
ROA(3y)3.14%
ROA(5y)3.07%
ROE(3y)9.01%
ROE(5y)8.8%
ROIC(3y)3.57%
ROIC(5y)3.52%
1.3 Margins
- The Profit Margin of WTRG (24.91%) is better than 78.57% of its industry peers.
- In the last couple of years the Profit Margin of WTRG has grown nicely.
- Looking at the Operating Margin, with a value of 37.22%, WTRG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of WTRG has grown nicely.
- The Gross Margin of WTRG (83.68%) is better than 92.86% of its industry peers.
- WTRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.22% | ||
| PM (TTM) | 24.91% | ||
| GM | 83.68% |
OM growth 3Y8.8%
OM growth 5Y2.62%
PM growth 3Y7%
PM growth 5Y5.05%
GM growth 3Y4.33%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WTRG is destroying value.
- WTRG has more shares outstanding than it did 1 year ago.
- WTRG has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WTRG has been reduced compared to a year ago.
2.2 Solvency
- WTRG has an Altman-Z score of 0.98. This is a bad value and indicates that WTRG is not financially healthy and even has some risk of bankruptcy.
- WTRG has a Altman-Z score (0.98) which is in line with its industry peers.
- WTRG has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
- WTRG has a Debt to Equity ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.5
WACC7.73%
2.3 Liquidity
- WTRG has a Current Ratio of 0.80. This is a bad value and indicates that WTRG is not financially healthy enough and could expect problems in meeting its short term obligations.
- WTRG has a Current ratio of 0.80. This is comparable to the rest of the industry: WTRG outperforms 42.86% of its industry peers.
- A Quick Ratio of 0.65 indicates that WTRG may have some problems paying its short term obligations.
- WTRG has a Quick ratio of 0.65. This is in the lower half of the industry: WTRG underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.84% over the past year.
- WTRG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.94% yearly.
- WTRG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.62%.
- The Revenue has been growing by 11.09% on average over the past years. This is quite good.
EPS 1Y (TTM)1.84%
EPS 3Y7.68%
EPS 5Y6.94%
EPS Q2Q%-29.85%
Revenue 1Y (TTM)18.62%
Revenue growth 3Y2.65%
Revenue growth 5Y11.09%
Sales Q2Q%15.67%
3.2 Future
- WTRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.96% yearly.
- The Revenue is expected to grow by 4.60% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.35%
EPS Next 3Y5.37%
EPS Next 5Y4.96%
Revenue Next Year6.23%
Revenue Next 2Y6.5%
Revenue Next 3Y6.39%
Revenue Next 5Y4.6%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.09, WTRG is valued on the expensive side.
- Based on the Price/Earnings ratio, WTRG is valued a bit cheaper than 78.57% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WTRG to the average of the S&P500 Index (27.07), we can say WTRG is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.41, the valuation of WTRG can be described as rather expensive.
- WTRG's Price/Forward Earnings ratio is rather cheap when compared to the industry. WTRG is cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WTRG to the average of the S&P500 Index (28.05), we can say WTRG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are more expensive than WTRG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.5 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)4.67
PEG (5Y)2.61
EPS Next 2Y5.35%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
- WTRG has a Yearly Dividend Yield of 3.58%.
- Compared to an average industry Dividend Yield of 2.94, WTRG pays a better dividend. On top of this WTRG pays more dividend than 85.71% of the companies listed in the same industry.
- WTRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of WTRG is nicely growing with an annual growth rate of 6.07%!
- WTRG has paid a dividend for at least 10 years, which is a reliable track record.
- WTRG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.07%
Div Incr Years33
Div Non Decr Years34
5.3 Sustainability
- WTRG pays out 60.65% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of WTRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.65%
EPS Next 2Y5.35%
EPS Next 3Y5.37%
39.97
+0.19 (+0.48%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-11 2026-05-11
Inst Owners85.54%
Inst Owner Change-1.09%
Ins Owners0.2%
Ins Owner Change8.9%
Market Cap11.31B
Revenue(TTM)2.47B
Net Income(TTM)616.37M
Analysts74.67
Price Target42.77 (7.01%)
Short Float %2.04%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend1.34
Dividend Growth(5Y)6.07%
DP60.65%
Div Incr Years33
Div Non Decr Years34
Ex-Date05-12 2026-05-12 (0.3426)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.28%
Min EPS beat(2)10.83%
Max EPS beat(2)13.72%
EPS beat(4)4
Avg EPS beat(4)17.74%
Min EPS beat(4)10.83%
Max EPS beat(4)24.54%
EPS beat(8)6
Avg EPS beat(8)10.65%
EPS beat(12)7
Avg EPS beat(12)6.78%
EPS beat(16)9
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)5.53%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)12.07%
Revenue beat(4)3
Avg Revenue beat(4)7.14%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)12.07%
Revenue beat(8)4
Avg Revenue beat(8)-0.07%
Revenue beat(12)5
Avg Revenue beat(12)-4.18%
Revenue beat(16)9
Avg Revenue beat(16)-0.23%
PT rev (1m)-1.8%
PT rev (3m)-4.32%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)3.08%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 17.41 | ||
| P/S | 4.57 | ||
| P/FCF | N/A | ||
| P/OCF | 11.19 | ||
| P/B | 1.65 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 14.5 |
EPS(TTM)2.21
EY5.53%
EPS(NY)2.3
Fwd EY5.74%
FCF(TTM)-1.48
FCFYN/A
OCF(TTM)3.57
OCFY8.93%
SpS8.74
BVpS24.23
TBVpS15.92
PEG (NY)4.67
PEG (5Y)2.61
Graham Number34.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.99% | ||
| ROCE | 4.92% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.87% | ||
| ROICexgc | 4.42% | ||
| OM | 37.22% | ||
| PM (TTM) | 24.91% | ||
| GM | 83.68% | ||
| FCFM | N/A |
ROA(3y)3.14%
ROA(5y)3.07%
ROE(3y)9.01%
ROE(5y)8.8%
ROIC(3y)3.57%
ROIC(5y)3.52%
ROICexc(3y)3.57%
ROICexc(5y)3.52%
ROICexgc(3y)4.13%
ROICexgc(5y)4.12%
ROCE(3y)4.56%
ROCE(5y)4.5%
ROICexgc growth 3Y2.07%
ROICexgc growth 5Y4.86%
ROICexc growth 3Y3.36%
ROICexc growth 5Y6.16%
OM growth 3Y8.8%
OM growth 5Y2.62%
PM growth 3Y7%
PM growth 5Y5.05%
GM growth 3Y4.33%
GM growth 5Y-1.15%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 342.53% | ||
| Cap/Sales | 57.79% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 75.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.98 |
F-Score5
WACC7.73%
ROIC/WACC0.5
Cap/Depr(3y)350.42%
Cap/Depr(5y)344.93%
Cap/Sales(3y)59.97%
Cap/Sales(5y)56.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.84%
EPS 3Y7.68%
EPS 5Y6.94%
EPS Q2Q%-29.85%
EPS Next Y3.87%
EPS Next 2Y5.35%
EPS Next 3Y5.37%
EPS Next 5Y4.96%
Revenue 1Y (TTM)18.62%
Revenue growth 3Y2.65%
Revenue growth 5Y11.09%
Sales Q2Q%15.67%
Revenue Next Year6.23%
Revenue Next 2Y6.5%
Revenue Next 3Y6.39%
Revenue Next 5Y4.6%
EBIT growth 1Y21.55%
EBIT growth 3Y11.68%
EBIT growth 5Y14%
EBIT Next Year54.85%
EBIT Next 3Y22.16%
EBIT Next 5Y17.45%
FCF growth 1Y25.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.17%
OCF growth 3Y18.95%
OCF growth 5Y14.74%
ESSENTIAL UTILITIES INC / WTRG FAQ
Can you provide the ChartMill fundamental rating for ESSENTIAL UTILITIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to WTRG.
Can you provide the valuation status for ESSENTIAL UTILITIES INC?
ChartMill assigns a valuation rating of 4 / 10 to ESSENTIAL UTILITIES INC (WTRG). This can be considered as Fairly Valued.
Can you provide the profitability details for ESSENTIAL UTILITIES INC?
ESSENTIAL UTILITIES INC (WTRG) has a profitability rating of 7 / 10.
Can you provide the financial health for WTRG stock?
The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 1 / 10.
How sustainable is the dividend of ESSENTIAL UTILITIES INC (WTRG) stock?
The dividend rating of ESSENTIAL UTILITIES INC (WTRG) is 7 / 10 and the dividend payout ratio is 60.65%.