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
38.8388 USD
+0.05 (+0.13%)
Pre-Market: 2/2/2026, 8:48:32 AM
We assign a fundamental rating of 4 out of 10 to WTRG. 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 has a correct valuation and a medium growth rate. Finally WTRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- WTRG had positive earnings in the past year.
- In the past year WTRG had a positive cash flow from operations.
- In the past 5 years WTRG has always been profitable.
- In the past 5 years WTRG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.54%, WTRG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- WTRG has a Return On Equity of 9.81%. This is in the better half of the industry: WTRG outperforms 78.57% of its industry peers.
- WTRG has a better Return On Invested Capital (3.98%) 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
- The Profit Margin of WTRG (28.09%) is better than 92.86% of its industry peers.
- In the last couple of years the Profit Margin of WTRG has grown nicely.
- The Operating Margin of WTRG (38.68%) is better than 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.
- Looking at the Gross Margin, with a value of 84.94%, WTRG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- 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
- 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.
- The number of shares outstanding for WTRG has been increased compared to 5 years ago.
- WTRG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.98, we must say that WTRG is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of WTRG (0.98) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.14 is on the high side and indicates that WTRG has dependencies on debt financing.
- The Debt to Equity ratio of WTRG (1.14) 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/WACC0.5
WACC7.9%
2.3 Liquidity
- WTRG has a Current 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.
- 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.
- A Quick Ratio of 0.43 indicates that WTRG may have some problems paying its short term obligations.
- WTRG's Quick ratio of 0.43 is on the low side compared to the rest of the industry. WTRG is outperformed by 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.
- The Earnings Per Share has been growing by 8.10% on average over the past years. This is quite good.
- 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
- Based on estimates for the next years, WTRG will show a small growth in Earnings Per Share. The EPS will grow by 4.33% on average per year.
- 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
- 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
- With a Price/Earnings ratio of 16.10, WTRG is valued correctly.
- 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.
- When comparing the Price/Earnings ratio of WTRG to the average of the S&P500 Index (28.32), we can say WTRG is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.98, the valuation of WTRG can be described as correct.
- Based on the Price/Forward Earnings ratio, WTRG is valued a bit cheaper than 78.57% of the companies in the same industry.
- WTRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| 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 the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.17 |
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 2.99. 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 1.83.
| 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 paid a dividend for at least 10 years, which is 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.
- 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%.