ESSENTIAL UTILITIES INC (WTRG) Fundamental Analysis & Valuation

NYSE:WTRG • US29670G1022

Current stock price

41.04 USD
-0.61 (-1.46%)
At close:
41.04 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.
  • 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.
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 has a better Return On Assets (3.17%) than 71.43% of its industry peers.
  • 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.
  • WTRG's Return On Invested Capital of 3.86% is fine compared to the rest of the industry. WTRG outperforms 64.29% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WTRG is in line with the industry average of 4.99%.
  • 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 78.57% of its industry peers.
  • 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 92.86% of the companies in the same industry.
  • WTRG's Operating Margin has improved in the last couple of years.
  • The Gross Margin of WTRG (83.68%) is better than 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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1

2. WTRG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WTRG is destroying value.
  • The number of shares outstanding for WTRG has been increased compared to 1 year ago.
  • Compared to 5 years ago, WTRG has more shares outstanding
  • Compared to 1 year ago, WTRG has an improved debt to assets ratio.
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 1.00, we must say that WTRG is in the distress zone and has some risk of bankruptcy.
  • WTRG's Altman-Z score of 1.00 is in line compared to the rest of the industry. WTRG outperforms 42.86% of its industry peers.
  • WTRG has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external 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 1
ROIC/WACC0.51
WACC7.53%
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

  • WTRG has a Current 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 Current ratio of 0.80. This is comparable to the rest of the industry: WTRG outperforms 57.14% of its industry peers.
  • A Quick Ratio of 0.65 indicates that WTRG may have some problems paying its short term obligations.
  • WTRG has a Quick ratio (0.65) which is comparable to the rest of the industry.
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

  • The Earnings Per Share has been growing slightly by 1.84% over the past year.
  • 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.
  • Measured over the past years, WTRG shows a quite strong growth in Revenue. The Revenue has been growing by 11.09% on average per year.
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

  • Based on estimates for the next years, WTRG will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
  • WTRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y4.11%
EPS Next 2Y5.53%
EPS Next 3Y5.43%
EPS Next 5Y5.31%
Revenue Next Year6.86%
Revenue Next 2Y6.74%
Revenue Next 3Y6.19%
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

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4

4. WTRG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.57, the valuation of WTRG can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of WTRG indicates a somewhat cheap valuation: WTRG is cheaper than 78.57% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.71, WTRG is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.84, which indicates a rather expensive current valuation of WTRG.
  • 78.57% of the companies in the same industry are more expensive than WTRG, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.83. WTRG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.57
Fwd PE 17.84
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

  • 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 14.86
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 an expensive valuation of the company.
  • The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)4.52
PEG (5Y)2.68
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

  • With a Yearly Dividend Yield of 3.58%, WTRG has a reasonable but not impressive dividend return.
  • WTRG's Dividend Yield is a higher than the industry average which is at 2.92.
  • WTRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
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 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)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

  • 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 (3/16/2026, 3:43:03 PM)

After market: 41.04 0 (0%)

41.04

-0.61 (-1.46%)

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 Cap11.62B
Revenue(TTM)2.47B
Net Income(TTM)616.37M
Analysts73.85
Price Target42.77 (4.22%)
Short Float %2.78%
Short Ratio3.02
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)-0.02%
PT rev (3m)-3.22%
EPS NQ rev (1m)5.03%
EPS NQ rev (3m)5.03%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)4.25%
Revenue NQ rev (3m)4.25%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)1.08%
Valuation
Industry RankSector Rank
PE 18.57
Fwd PE 17.84
P/S 4.7
P/FCF N/A
P/OCF 11.5
P/B 1.69
P/tB 2.58
EV/EBITDA 14.86
EPS(TTM)2.21
EY5.38%
EPS(NY)2.3
Fwd EY5.61%
FCF(TTM)-1.48
FCFYN/A
OCF(TTM)3.57
OCFY8.7%
SpS8.74
BVpS24.22
TBVpS15.92
PEG (NY)4.52
PEG (5Y)2.68
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 1
F-Score5
WACC7.53%
ROIC/WACC0.51
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 Year6.86%
Revenue Next 2Y6.74%
Revenue Next 3Y6.19%
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.


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%.