ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTRG - US29670G1022 - Common Stock
39.33 USD
+0.18 (+0.46%)
WTRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
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.
Each year in the past 5 years WTRG had a positive operating cash flow.
1.2 Ratios
WTRG has a Return On Assets of 3.54%. This is in the better half 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.
Looking at the Return On Invested Capital, with a value of 3.98%, WTRG is in the better half of the industry, outperforming 71.43% 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 4.89%.
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.
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.
WTRG's Operating Margin has been stable in the last couple of years.
The Gross Margin of WTRG (84.94%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 0.98. 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 of 0.98. This is comparable to the rest of the industry: WTRG outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that WTRG has dependencies on debt 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/WACC0.53
WACC7.53%
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.
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.
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
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%.
Measured over the past years, WTRG shows a quite strong growth in Revenue. The Revenue has been growing by 18.58% on average per year.
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.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y-0.41%
EPS Next 2Y2.59%
EPS Next 3Y4.33%
EPS Next 5Y4.33%
Revenue Next Year7.89%
Revenue Next 2Y6.64%
Revenue Next 3Y6.63%
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 16.32, WTRG is valued correctly.
Based on the Price/Earnings ratio, WTRG is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, WTRG is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.22 indicates a rather expensive valuation of WTRG.
WTRG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WTRG is 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 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTRG indicates a somewhat cheap valuation: WTRG is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y2.59%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
WTRG has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, WTRG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, WTRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 3Y4.33%
NYSE:WTRG (1/13/2026, 2:21:42 PM)
39.33
+0.18 (+0.46%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.54%
Inst Owner Change-0.58%
Ins Owners0.2%
Ins Owner Change0%
Market Cap11.13B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target43.55 (10.73%)
Short Float %1.73%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend1.26
Dividend Growth(5Y)5.99%
DP54.79%
Div Incr Years33
Div Non Decr Years34
Ex-DateN/A
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)-1.44%
PT rev (3m)-8.51%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-19.73%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 17.22 | ||
| P/S | 4.68 | ||
| P/FCF | N/A | ||
| P/OCF | 11.69 | ||
| P/B | 1.63 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)2.41
EY6.13%
EPS(NY)2.28
Fwd EY5.81%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY8.56%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)2.01
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 | 0.98 |
F-Score7
WACC7.53%
ROIC/WACC0.53
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 3Y4.33%
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 3Y6.63%
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 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 6 / 10 and the dividend payout ratio is 54.79%.