ESSENTIAL UTILITIES INC (WTRG) Fundamental Analysis & Valuation

NYSE:WTRG • US29670G1022

Current stock price

40.585 USD
-0.46 (-1.13%)
Last:

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.
  • Each year in the past 5 years WTRG has 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

  • WTRG's Return On Assets of 3.17% is fine compared to the rest of the industry. WTRG outperforms 71.43% of its industry peers.
  • WTRG's Return On Equity of 8.99% is fine compared to the rest of the industry. WTRG outperforms 64.29% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.86%, WTRG is in the better half of 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 4.53%.
  • The last Return On Invested Capital (3.86%) for WTRG is above the 3 year average (3.57%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 24.91%, WTRG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WTRG has grown nicely.
  • With an excellent Operating Margin value of 37.22%, WTRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WTRG has grown nicely.
  • With an excellent Gross Margin value of 83.68%, WTRG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
  • 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

More info and screens

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
  • Compared to 5 years ago, WTRG has more shares outstanding
  • 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

  • Based on the Altman-Z score of 0.99, we must say that WTRG is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.99, WTRG perfoms like the industry average, outperforming 42.86% 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.
  • WTRG's Debt to Equity ratio of 1.20 is in line compared to the rest of the industry. WTRG outperforms 42.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACC0.49
WACC7.87%
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 has a Current ratio (0.80) which is comparable to the rest of the industry.
  • 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 worse Quick ratio (0.65) than 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

More info and screens

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%.
  • The Earnings Per Share has been growing slightly by 6.94% on average over the past years.
  • Looking at the last year, WTRG shows a quite strong growth in Revenue. The Revenue has grown by 18.62% in the last year.
  • The Revenue has been growing by 11.09% on average over the past years. This is quite good.
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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

4

4. WTRG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.36, the valuation of WTRG can be described as rather expensive.
  • Based on the Price/Earnings ratio, WTRG is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, WTRG is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.64, which indicates a rather expensive current valuation of WTRG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WTRG indicates a rather cheap valuation: WTRG is cheaper than 85.71% of the companies listed in the same industry.
  • WTRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.36
Fwd PE 17.64
WTRG Price Earnings VS Forward Price EarningsWTRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

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 RankSector Rank
P/FCF N/A
EV/EBITDA 14.73
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.
  • The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)4.47
PEG (5Y)2.65
EPS Next 2Y5.53%
EPS Next 3Y5.43%

More info and screens

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

6

5. WTRG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.58%, WTRG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.01, WTRG pays a bit more dividend than its industry peers.
  • 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

  • The dividend of WTRG is nicely growing with an annual growth rate of 6.07%!
  • 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)6.07%
Div Incr Years33
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

  • WTRG pays out 60.65% of its income as dividend. 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

More info and screens

Find the best dividend stocksShow peers with best dividend

WTRG Fundamentals: All Metrics, Ratios and Statistics

ESSENTIAL UTILITIES INC

NYSE:WTRG (3/31/2026, 12:13:34 PM)

40.585

-0.46 (-1.13%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)02-25
Earnings (Next)05-11
Inst Owners83.41%
Inst Owner Change-1.09%
Ins Owners0.22%
Ins Owner Change8.88%
Market Cap11.49B
Revenue(TTM)2.47B
Net Income(TTM)616.37M
Analysts73.85
Price Target42.77 (5.38%)
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 Years33
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)0.77%
EPS NQ rev (3m)4.53%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)4.25%
Revenue NQ rev (3m)4.25%
Revenue NY rev (1m)3.71%
Revenue NY rev (3m)4.21%
Valuation
Industry RankSector Rank
PE 18.36
Fwd PE 17.64
P/S 4.64
P/FCF N/A
P/OCF 11.37
P/B 1.68
P/tB 2.55
EV/EBITDA 14.73
EPS(TTM)2.21
EY5.45%
EPS(NY)2.3
Fwd EY5.67%
FCF(TTM)-1.48
FCFYN/A
OCF(TTM)3.57
OCFY8.79%
SpS8.74
BVpS24.22
TBVpS15.92
PEG (NY)4.47
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
WACC7.87%
ROIC/WACC0.49
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 3 / 10 to ESSENTIAL UTILITIES INC (WTRG). This can be considered as Overvalued.


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 1 / 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 60.65%.