ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTRG - US29670G1022 - Common Stock
38 USD
+0.1 (+0.26%)
38 USD
0 (0%)
Overall WTRG gets a fundamental rating of 4 out of 10. We evaluated WTRG against 15 industry peers in the Water Utilities industry. WTRG has an excellent profitability rating, 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.
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 73.33% of its industry peers.
WTRG's Return On Equity of 9.81% is fine compared to the rest of the industry. WTRG outperforms 80.00% of its industry peers.
The Return On Invested Capital of WTRG (3.98%) is better than 73.33% 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 4.77%.
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
WTRG has a better Profit Margin (28.09%) than 93.33% of its industry peers.
In the last couple of years the Profit Margin of WTRG has grown nicely.
Looking at the Operating Margin, with a value of 38.68%, WTRG belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
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 86.67% of the companies in the same industry.
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 46.67% 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.
With a Debt to Equity ratio value of 1.14, WTRG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.56
WACC7.17%
2.3 Liquidity
A Current Ratio of 0.60 indicates that WTRG may have some problems paying its short term obligations.
With a Current ratio value of 0.60, WTRG is not doing good in the industry: 73.33% 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.
The Quick ratio of WTRG (0.43) is worse than 80.00% 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.
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.
Looking at the last year, WTRG shows a very strong growth in Revenue. The Revenue has grown by 21.35%.
WTRG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.58% yearly.
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-0.36%
EPS Next 2Y2.61%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
WTRG is valuated correctly with a Price/Earnings ratio of 15.77.
Compared to the rest of the industry, the Price/Earnings ratio of WTRG indicates a somewhat cheap valuation: WTRG is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, WTRG is valued a bit cheaper.
WTRG is valuated correctly with a Price/Forward Earnings ratio of 16.63.
80.00% of the companies in the same industry are more expensive than WTRG, based on the Price/Forward Earnings ratio.
WTRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
73.33% of the companies in the same industry are more expensive than WTRG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14 |
4.3 Compensation for Growth
WTRG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y2.61%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, WTRG has a reasonable but not impressive dividend return.
WTRG's Dividend Yield is a higher than the industry average which is at 3.47.
WTRG's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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 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 2Y2.61%
EPS Next 3Y4.33%
38
+0.1 (+0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change4.36%
Ins Owners0.19%
Ins Owner Change2.91%
Market Cap10.75B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target44.19 (16.29%)
Short Float %2%
Short Ratio2.73
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)-2.26%
PT rev (3m)-7.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.17%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.25%
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 | 15.77 | ||
| Fwd PE | 16.63 | ||
| P/S | 4.52 | ||
| P/FCF | N/A | ||
| P/OCF | 11.29 | ||
| P/B | 1.58 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 14 |
EPS(TTM)2.41
EY6.34%
EPS(NY)2.28
Fwd EY6.01%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY8.85%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)1.95
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
WACC7.17%
ROIC/WACC0.56
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-0.36%
EPS Next 2Y2.61%
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 15.77 and the Price/Book (PB) ratio is 1.58.
How financially healthy is ESSENTIAL UTILITIES INC?
The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 0 / 10.