ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WTRG • US29670G1022
37.4 USD
-0.49 (-1.29%)
At close: Feb 4, 2026
37.75 USD
+0.35 (+0.94%)
After Hours: 2/4/2026, 8:04:00 PM
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 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.
- WTRG had a positive operating cash flow in the past year.
- WTRG had positive earnings in each of the past 5 years.
- WTRG had a positive operating cash flow in each of the past 5 years.
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.
- The Return On Equity of WTRG (9.81%) is better than 78.57% of its industry peers.
- The Return On Invested Capital of WTRG (3.98%) is better than 64.29% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WTRG is in line with the industry average of 4.99%.
- The 3 year average ROIC (3.45%) for WTRG is below the current ROIC(3.98%), indicating increased profibility in the last year.
| 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.
- WTRG's Profit Margin has improved in the last couple of years.
- WTRG's Operating Margin of 38.68% is amongst the best of the industry. WTRG outperforms 92.86% of its industry peers.
- In the last couple of years the Operating Margin of WTRG has remained more or less at the same level.
- The Gross Margin of WTRG (84.94%) is better than 92.86% of its industry peers.
- In the last couple of years the Gross Margin of WTRG has grown nicely.
| 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.
- Compared to 1 year ago, WTRG has more shares outstanding
- The number of shares outstanding for WTRG has been increased compared to 5 years ago.
- Compared to 1 year ago, WTRG has a worse debt to assets ratio.
2.2 Solvency
- WTRG has an Altman-Z score of 0.97. This is a bad value and indicates that WTRG is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.97, WTRG perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- 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 | 0.97 |
ROIC/WACC0.5
WACC7.89%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that WTRG may have some problems paying its short term obligations.
- WTRG has a Current ratio of 0.60. This is in the lower half of the industry: WTRG underperforms 71.43% of its industry peers.
- A Quick Ratio of 0.43 indicates that WTRG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.43, WTRG is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.80% over the past year.
- 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%.
- The Revenue has been growing by 18.58% on average over the past years. This is quite good.
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
- WTRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.33% yearly.
- Based on estimates for the next years, WTRG will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 15.52, the valuation of WTRG can be described as correct.
- WTRG's Price/Earnings ratio is rather cheap when compared to the industry. WTRG is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.25, WTRG is valued a bit cheaper.
- WTRG is valuated correctly with a Price/Forward Earnings ratio of 16.38.
- Based on the Price/Forward Earnings ratio, WTRG is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- WTRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 16.38 |
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 | 13.97 |
4.3 Compensation for Growth
- WTRG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.92
EPS Next 2Y2.59%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.58%, WTRG has a reasonable but not impressive dividend return.
- WTRG's Dividend Yield is rather good when compared to the industry average which is at 2.99. WTRG pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WTRG pays a better dividend.
| 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
- WTRG pays out 54.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
- WTRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.79%
EPS Next 2Y2.59%
EPS Next 3Y4.27%
37.4
-0.49 (-1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners85.54%
Inst Owner Change-2.24%
Ins Owners0.2%
Ins Owner Change7.3%
Market Cap10.58B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target43.55 (16.44%)
Short Float %2.26%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend1.26
Dividend Growth(5Y)5.99%
DP54.79%
Div Incr Years33
Div Non Decr Years34
Ex-Date02-09 2026-02-09 (0.3426)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.79%
Min EPS beat(2)13.72%
Max EPS beat(2)21.86%
EPS beat(4)3
Avg EPS beat(4)14.72%
Min EPS beat(4)-1.24%
Max EPS beat(4)24.54%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)6
Avg EPS beat(12)5.6%
EPS beat(16)8
Avg EPS beat(16)5.05%
Revenue beat(2)1
Avg Revenue beat(2)3.52%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)8.05%
Revenue beat(4)2
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)9.45%
Revenue beat(8)3
Avg Revenue beat(8)-5.79%
Revenue beat(12)5
Avg Revenue beat(12)-3.46%
Revenue beat(16)9
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)-8.51%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)-6.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 16.38 | ||
| P/S | 4.45 | ||
| P/FCF | N/A | ||
| P/OCF | 11.11 | ||
| P/B | 1.55 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 13.97 |
EPS(TTM)2.41
EY6.44%
EPS(NY)2.28
Fwd EY6.11%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY9%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)1.92
Graham Number36.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 9.81% | ||
| ROCE | 5.07% | ||
| ROIC | 3.98% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 4.57% | ||
| OM | 38.68% | ||
| PM (TTM) | 28.09% | ||
| GM | 84.94% | ||
| FCFM | N/A |
ROA(3y)3.07%
ROA(5y)2.85%
ROE(3y)8.9%
ROE(5y)8.22%
ROIC(3y)3.45%
ROIC(5y)3.32%
ROICexc(3y)3.45%
ROICexc(5y)3.32%
ROICexgc(3y)4.04%
ROICexgc(5y)3.94%
ROCE(3y)4.42%
ROCE(5y)4.24%
ROICexgc growth 3Y-0.42%
ROICexgc growth 5Y1.31%
ROICexc growth 3Y0.8%
ROICexc growth 5Y-1.43%
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
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.87 | ||
| Cap/Depr | 339.6% | ||
| Cap/Sales | 58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.97 |
F-Score7
WACC7.89%
ROIC/WACC0.5
Cap/Depr(3y)346.54%
Cap/Depr(5y)341.43%
Cap/Sales(3y)56.19%
Cap/Sales(5y)56.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.8%
EPS 3Y9.12%
EPS 5Y8.1%
EPS Q2Q%32%
EPS Next Y-0.41%
EPS Next 2Y2.59%
EPS Next 3Y4.27%
EPS Next 5Y4.33%
Revenue 1Y (TTM)21.35%
Revenue growth 3Y3.56%
Revenue growth 5Y18.58%
Sales Q2Q%9.58%
Revenue Next Year7.89%
Revenue Next 2Y6.64%
Revenue Next 3Y6.83%
Revenue Next 5Y6.32%
EBIT growth 1Y30.58%
EBIT growth 3Y7.93%
EBIT growth 5Y17.37%
EBIT Next Year57.12%
EBIT Next 3Y23.8%
EBIT Next 5Y18.08%
FCF growth 1Y-29.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.5%
OCF growth 3Y6.12%
OCF growth 5Y17.88%
ESSENTIAL UTILITIES INC / WTRG FAQ
Can you provide the ChartMill fundamental rating for ESSENTIAL UTILITIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to WTRG.
Can you provide the valuation status for ESSENTIAL UTILITIES INC?
ChartMill assigns a valuation rating of 5 / 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%.