ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WTRG • US29670G1022
38.79 USD
+0.08 (+0.21%)
At close: Jan 30, 2026
38.79 USD
0 (0%)
After Hours: 1/30/2026, 8:24:39 PM
Taking everything into account, WTRG scores 4 out of 10 in our fundamental rating. WTRG was compared to 14 industry peers in the Water Utilities industry. WTRG scores excellent on profitability, but there are concerns on its financial health. WTRG is not valued too expensively and it also shows a decent growth rate. Finally WTRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year WTRG was profitable.
- In the past year WTRG had a positive cash flow from operations.
- WTRG had positive earnings in each of the past 5 years.
- Each year in the past 5 years WTRG had a positive operating cash flow.
1.2 Ratios
- WTRG's Return On Assets of 3.54% is fine compared to the rest of the industry. WTRG outperforms 71.43% of its industry peers.
- With a decent Return On Equity value of 9.81%, WTRG is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- WTRG has a Return On Invested Capital of 3.98%. This is in the better half of the industry: WTRG outperforms 64.29% of its industry peers.
- WTRG had an Average Return On Invested Capital over the past 3 years of 3.45%. This is in line with the industry average of 4.99%.
- The last Return On Invested Capital (3.98%) for WTRG is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 9.81% | ||
| ROIC | 3.98% |
ROA(3y)3.07%
ROA(5y)2.85%
ROE(3y)8.9%
ROE(5y)8.22%
ROIC(3y)3.45%
ROIC(5y)3.32%
1.3 Margins
- Looking at the Profit Margin, with a value of 28.09%, 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 Profit Margin of WTRG has grown nicely.
- Looking at the Operating Margin, with a value of 38.68%, WTRG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- WTRG's Operating Margin has been stable in the last couple of years.
- WTRG has a Gross Margin of 84.94%. This is amongst the best in the industry. WTRG outperforms 92.86% of its industry peers.
- WTRG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.68% | ||
| PM (TTM) | 28.09% | ||
| GM | 84.94% |
OM growth 3Y4.21%
OM growth 5Y-1.02%
PM growth 3Y7.49%
PM growth 5Y2.49%
GM growth 3Y1.93%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTRG is destroying value.
- The number of shares outstanding for WTRG has been increased compared to 1 year ago.
- Compared to 5 years ago, WTRG has more shares outstanding
- The debt/assets ratio for WTRG is higher 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 1.14. This is a high value indicating a heavy dependency on external financing.
- WTRG has a Debt to Equity ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.52
WACC7.6%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that WTRG may have some problems paying its short term obligations.
- With a Current ratio value of 0.60, WTRG is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- WTRG has a Quick Ratio of 0.60. This is a bad value and indicates that WTRG is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of WTRG (0.43) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- WTRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.80%, which is quite impressive.
- Measured over the past years, WTRG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
- WTRG shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.35%.
- WTRG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.58% yearly.
EPS 1Y (TTM)20.8%
EPS 3Y9.12%
EPS 5Y8.1%
EPS Q2Q%32%
Revenue 1Y (TTM)21.35%
Revenue growth 3Y3.56%
Revenue growth 5Y18.58%
Sales Q2Q%9.58%
3.2 Future
- The Earnings Per Share is expected to grow by 4.33% on average over the next years.
- WTRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y-0.41%
EPS Next 2Y2.59%
EPS Next 3Y4.27%
EPS Next 5Y4.33%
Revenue Next Year7.89%
Revenue Next 2Y6.64%
Revenue Next 3Y6.83%
Revenue Next 5Y6.32%
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
- WTRG is valuated correctly with a Price/Earnings ratio of 16.10.
- Compared to the rest of the industry, the Price/Earnings ratio of WTRG indicates a rather cheap valuation: WTRG is cheaper than 85.71% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. WTRG is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.98 indicates a correct valuation of WTRG.
- 78.57% of the companies in the same industry are more expensive than WTRG, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. WTRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WTRG is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- WTRG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.99
EPS Next 2Y2.59%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
- WTRG has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
- WTRG's Dividend Yield is rather good when compared to the industry average which is at 2.93. WTRG pays more dividend than 85.71% of the companies 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 has a limited annual growth rate of 5.99%.
- WTRG has been paying a dividend for at least 10 years, so it has a reliable track record.
- WTRG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.99%
Div Incr Years33
Div Non Decr Years34
5.3 Sustainability
- 54.79% of the earnings are spent on dividend by WTRG. This is a bit on the high side, but may be sustainable.
- The dividend of WTRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.79%
EPS Next 2Y2.59%
EPS Next 3Y4.27%
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 8 / 10.
Can you provide the financial health for WTRG stock?
The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 0 / 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 54.79%.