ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTRG - US29670G1022 - Common Stock
40 USD
+0.28 (+0.7%)
40 USD
0 (0%)
Taking everything into account, WTRG scores 4 out of 10 in our fundamental rating. WTRG was compared to 14 industry peers in the Water Utilities industry. WTRG has an excellent profitability rating, but there are concerns on its financial health. WTRG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- WTRG had positive earnings in the past year.
- WTRG had a positive operating cash flow in the past year.
- Each year in the past 5 years WTRG has been profitable.
- WTRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WTRG's Return On Assets of 3.54% is fine compared to the rest of the industry. WTRG outperforms 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.
- With a decent Return On Invested Capital value of 3.98%, WTRG is doing good in the industry, outperforming 64.29% 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 4.99%.
- 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 92.86% of its industry peers.
- WTRG's Profit Margin has improved in the last couple of years.
- WTRG has a better Operating Margin (38.68%) 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.
- Compared to 1 year ago, WTRG has more shares outstanding
- 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 0.99. This is a bad value and indicates that WTRG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.99, WTRG is in line with its industry, outperforming 42.86% 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.
- WTRG's Debt to Equity ratio of 1.14 is in line compared to the rest of the industry. WTRG outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.53
WACC7.55%
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.
- 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.
- WTRG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
- 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
- WTRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.33% yearly.
- 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 3Y4.33%
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.
- 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
- Based on the Price/Earnings ratio of 16.60, the valuation of WTRG can be described as correct.
- 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 (27.54), we can say WTRG is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.51, WTRG is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, WTRG is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
- WTRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WTRG is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.36 |
4.3 Compensation for Growth
- The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y2.59%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
- WTRG has a Yearly Dividend Yield of 3.60%.
- 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 been paying a dividend for at least 10 years, so it has 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.
- WTRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.79%
EPS Next 2Y2.59%
EPS Next 3Y4.33%
40
+0.28 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners85.54%
Inst Owner Change-0.58%
Ins Owners0.2%
Ins Owner Change0%
Market Cap11.32B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target43.55 (8.87%)
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 | 16.6 | ||
| Fwd PE | 17.51 | ||
| P/S | 4.76 | ||
| P/FCF | N/A | ||
| P/OCF | 11.89 | ||
| P/B | 1.66 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 14.36 |
EPS(TTM)2.41
EY6.03%
EPS(NY)2.28
Fwd EY5.71%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY8.41%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)2.05
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 | 0.99 |
F-Score7
WACC7.55%
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%.