ESSENTIAL UTILITIES INC (WTRG) Fundamental Analysis & Valuation

NYSE:WTRG • US29670G1022

Current stock price

40.66 USD
-0.4 (-0.97%)
At close:
40.66 USD
0 (0%)
After Hours:

This WTRG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WTRG Profitability Analysis

1.1 Basic Checks

  • WTRG had positive earnings in the past year.
  • WTRG had a positive operating cash flow in the past year.
  • In the past 5 years WTRG has always been profitable.
  • In the past 5 years WTRG always reported a positive cash flow from operatings.
WTRG Yearly Net Income VS EBIT VS OCF VS FCFWTRG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.17%, 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 8.99%. This is in the better half of the industry: WTRG outperforms 64.29% of its industry peers.
  • The Return On Invested Capital of WTRG (3.86%) is better than 64.29% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WTRG is in line with the industry average of 4.53%.
  • The 3 year average ROIC (3.57%) for WTRG is below the current ROIC(3.86%), indicating increased profibility in the last year.
Industry RankSector 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%
WTRG Yearly ROA, ROE, ROICWTRG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • WTRG has a better Profit Margin (24.91%) than 85.71% of its industry peers.
  • In the last couple of years the Profit Margin of WTRG has grown nicely.
  • WTRG has a better Operating Margin (37.22%) than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of WTRG has grown nicely.
  • WTRG has a Gross Margin of 83.68%. This is amongst the best in the industry. WTRG outperforms 92.86% of its industry peers.
  • WTRG's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
WTRG Yearly Profit, Operating, Gross MarginsWTRG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. WTRG Health Analysis

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
  • WTRG has more shares outstanding than it did 5 years ago.
  • WTRG has a better debt/assets ratio than last year.
WTRG Yearly Shares OutstandingWTRG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
WTRG Yearly Total Debt VS Total AssetsWTRG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • WTRG has an Altman-Z score of 0.99. 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 0.99, WTRG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • A Debt/Equity ratio of 1.20 is on the high side and indicates that WTRG has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.20, WTRG is in line with its industry, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACC0.53
WACC7.28%
WTRG Yearly LT Debt VS Equity VS FCFWTRG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.80 indicates that WTRG may have some problems paying its short term obligations.
  • WTRG's Current ratio of 0.80 is in line compared to the rest of the industry. WTRG outperforms 50.00% of its industry peers.
  • WTRG has a Quick 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 Quick ratio of 0.65. This is in the lower half of the industry: WTRG underperforms 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.65
WTRG Yearly Current Assets VS Current LiabilitesWTRG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. WTRG Growth Analysis

3.1 Past

  • WTRG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.84%.
  • Measured over the past 5 years, WTRG shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
  • Looking at the last year, WTRG shows a quite strong growth in Revenue. The Revenue has grown by 18.62% in the last year.
  • WTRG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.09% yearly.
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

  • The Earnings Per Share is expected to grow by 5.31% on average over the next years.
  • The Revenue is expected to grow by 4.60% on average over the next years.
EPS Next Y4.11%
EPS Next 2Y5.53%
EPS Next 3Y5.43%
EPS Next 5Y5.31%
Revenue Next Year10.17%
Revenue Next 2Y8.73%
Revenue Next 3Y7.65%
Revenue Next 5Y4.6%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
WTRG Yearly Revenue VS EstimatesWTRG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B 2.5B
WTRG Yearly EPS VS EstimatesWTRG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2 2.5

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4

4. WTRG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.40, the valuation of WTRG can be described as rather expensive.
  • 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 (26.78), we can say WTRG is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 17.67, which indicates a rather expensive current valuation of WTRG.
  • 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 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.4
Fwd PE 17.67
WTRG Price Earnings VS Forward Price EarningsWTRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 14.74
WTRG Per share dataWTRG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTRG does not grow enough to justify the current Price/Earnings ratio.
  • WTRG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.48
PEG (5Y)2.65
EPS Next 2Y5.53%
EPS Next 3Y5.43%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WTRG Dividend Analysis

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 a higher than the industry average which is at 3.02.
  • WTRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.58%

5.2 History

  • On average, the dividend of WTRG grows each year by 6.07%, which is quite nice.
  • 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)6.07%
Div Incr Years34
Div Non Decr Years34
WTRG Yearly Dividends per shareWTRG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 60.65% of the earnings are spent on dividend by WTRG. This is not a sustainable payout ratio.
  • WTRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.65%
EPS Next 2Y5.53%
EPS Next 3Y5.43%
WTRG Yearly Income VS Free CF VS DividendWTRG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M 600M
WTRG Dividend Payout.WTRG Dividend Payout, showing the Payout Ratio.WTRG Dividend Payout.PayoutRetained Earnings

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WTRG Fundamentals: All Metrics, Ratios and Statistics

ESSENTIAL UTILITIES INC

NYSE:WTRG (4/10/2026, 8:04:00 PM)

After market: 40.66 0 (0%)

40.66

-0.4 (-0.97%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-25
Earnings (Next)05-11
Inst Owners83.41%
Inst Owner Change0.01%
Ins Owners0.22%
Ins Owner Change8.88%
Market Cap11.51B
Revenue(TTM)2.47B
Net Income(TTM)616.37M
Analysts73.85
Price Target42.77 (5.19%)
Short Float %1.91%
Short Ratio2.06
Dividend
Industry RankSector Rank
Dividend Yield 3.58%
Yearly Dividend1.34
Dividend Growth(5Y)6.07%
DP60.65%
Div Incr Years34
Div Non Decr Years34
Ex-Date05-12
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)0%
PT rev (3m)-1.8%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)4.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.25%
Revenue NY rev (1m)3.09%
Revenue NY rev (3m)4.21%
Valuation
Industry RankSector Rank
PE 18.4
Fwd PE 17.67
P/S 4.65
P/FCF N/A
P/OCF 11.39
P/B 1.68
P/tB 2.55
EV/EBITDA 14.74
EPS(TTM)2.21
EY5.44%
EPS(NY)2.3
Fwd EY5.66%
FCF(TTM)-1.48
FCFYN/A
OCF(TTM)3.57
OCFY8.78%
SpS8.74
BVpS24.22
TBVpS15.92
PEG (NY)4.48
PEG (5Y)2.65
Graham Number34.7
Profitability
Industry RankSector 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 RankSector 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 0.99
F-Score5
WACC7.28%
ROIC/WACC0.53
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 Y4.11%
EPS Next 2Y5.53%
EPS Next 3Y5.43%
EPS Next 5Y5.31%
Revenue 1Y (TTM)18.62%
Revenue growth 3Y2.65%
Revenue growth 5Y11.09%
Sales Q2Q%15.67%
Revenue Next Year10.17%
Revenue Next 2Y8.73%
Revenue Next 3Y7.65%
Revenue Next 5Y4.6%
EBIT growth 1Y21.55%
EBIT growth 3Y11.68%
EBIT growth 5Y14%
EBIT Next Year54.85%
EBIT Next 3Y21.97%
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 Fundamental Analysis 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.


What is the profitability of WTRG stock?

ESSENTIAL UTILITIES INC (WTRG) has a profitability rating of 8 / 10.


What are the PE and PB ratios of ESSENTIAL UTILITIES INC (WTRG) stock?

The Price/Earnings (PE) ratio for ESSENTIAL UTILITIES INC (WTRG) is 18.4 and the Price/Book (PB) ratio is 1.68.


What is the financial health of ESSENTIAL UTILITIES INC (WTRG) stock?

The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 1 / 10.