ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTRG - US29670G1022 - Common Stock
38.57 USD
0 (0%)
38.57 USD
0 (0%)
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.
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.
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
The Return On Assets of WTRG (3.54%) is better than 71.43% of its industry peers.
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 71.43% 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 4.89%.
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
With an excellent Profit Margin value of 28.09%, WTRG belongs to the best 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 has a Operating Margin of 38.68%. This is amongst the best in the industry. WTRG outperforms 92.86% of its industry peers.
WTRG's Operating Margin has been stable in the last couple of years.
WTRG has a better Gross Margin (84.94%) 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
WTRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WTRG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WTRG has more shares outstanding
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.
The Altman-Z score of WTRG (0.98) is comparable to the rest of the 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 | 0.98 |
ROIC/WACC0.57
WACC7.01%
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.
WTRG has a worse Current ratio (0.60) than 71.43% of its industry peers.
A Quick Ratio of 0.43 indicates that WTRG may have some problems paying its short term obligations.
WTRG has a worse Quick ratio (0.43) than 78.57% of its industry peers.
| 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.
WTRG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
Looking at the last year, WTRG shows a very strong growth in Revenue. 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.
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
A Price/Earnings ratio of 16.00 indicates a correct valuation of WTRG.
78.57% of the companies in the same industry are more expensive than WTRG, based on the Price/Earnings ratio.
WTRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
The Price/Forward Earnings ratio is 16.89, which indicates a correct 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.89 |
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 | 14.12 |
4.3 Compensation for Growth
The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y2.59%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
WTRG has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.96, WTRG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WTRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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
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 3Y4.33%
38.57
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change4.37%
Ins Owners0.19%
Ins Owner Change2.91%
Market Cap10.91B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target43.55 (12.91%)
Short Float %2.03%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend1.26
Dividend Growth(5Y)5.99%
DP54.79%
Div Incr Years33
Div Non Decr Years34
Ex-Date
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)-2.57%
PT rev (3m)-8.6%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-19.73%
EPS NY rev (1m)0%
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)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.89 | ||
| P/S | 4.59 | ||
| P/FCF | N/A | ||
| P/OCF | 11.46 | ||
| P/B | 1.6 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 14.12 |
EPS(TTM)2.41
EY6.25%
EPS(NY)2.28
Fwd EY5.92%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY8.72%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)1.98
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
WACC7.01%
ROIC/WACC0.57
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.
What is the valuation status of ESSENTIAL UTILITIES INC (WTRG) stock?
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.
What are the PE and PB ratios of ESSENTIAL UTILITIES INC (WTRG) stock?
The Price/Earnings (PE) ratio for ESSENTIAL UTILITIES INC (WTRG) is 16 and the Price/Book (PB) ratio is 1.6.
How financially healthy is ESSENTIAL UTILITIES INC?
The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 0 / 10.