ESSENTIAL UTILITIES INC (WTRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTRG - US29670G1022 - Common Stock
40.12 USD
+1.45 (+3.75%)
40.12 USD
0 (0%)
WTRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Water Utilities industry. While WTRG belongs to the best of the industry regarding profitability, there are concerns on its financial health. WTRG has a decent growth rate and is not valued too expensively.
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.
In the past 5 years WTRG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.54%, WTRG is doing good in the industry, outperforming 73.33% of the companies in the same industry.
The Return On Equity of WTRG (9.81%) is better than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.98%, WTRG is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
With an excellent Profit Margin value of 28.09%, WTRG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of WTRG has grown nicely.
WTRG has a Operating Margin of 38.68%. This is amongst the best in the industry. WTRG outperforms 93.33% of its industry peers.
WTRG's Operating Margin has been stable in the last couple of years.
WTRG's Gross Margin of 84.94% is amongst the best of the industry. WTRG outperforms 86.67% of its industry peers.
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
Compared to 5 years ago, WTRG has more shares outstanding
The debt/assets ratio for WTRG is higher compared to a year ago.
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 has a Altman-Z score of 1.00. This is comparable to the rest of the industry: WTRG outperforms 46.67% of its industry peers.
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 | 1 |
ROIC/WACC0.54
WACC7.43%
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.
The Current ratio of WTRG (0.60) is worse than 73.33% 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.
Looking at the Quick ratio, with a value of 0.43, WTRG is doing worse than 80.00% of the companies in the same industry.
| 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%.
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
Based on estimates for the next years, WTRG will show a small growth in Earnings Per Share. The EPS will grow by 4.33% on average per year.
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 2Y2.52%
EPS Next 3Y4.33%
EPS Next 5Y4.33%
Revenue Next Year7.89%
Revenue Next 2Y6.66%
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.
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
The Price/Earnings ratio is 16.65, which indicates a correct valuation of WTRG.
Based on the Price/Earnings ratio, WTRG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. WTRG is valued slightly cheaper when compared to this.
WTRG is valuated rather expensively with a Price/Forward Earnings ratio of 17.59.
Based on the Price/Forward Earnings ratio, WTRG is valued a bit cheaper than 73.33% of the companies in the same industry.
WTRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 17.59 |
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 | 14.45 |
4.3 Compensation for Growth
The excellent profitability rating of WTRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y2.52%
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.
WTRG's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.41, WTRG pays a bit more dividend than the S&P500 average.
| 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.
The dividend of WTRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.79%
EPS Next 2Y2.52%
EPS Next 3Y4.33%
40.12
+1.45 (+3.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.39%
Inst Owner Change4.31%
Ins Owners0.19%
Ins Owner Change2.91%
Market Cap11.35B
Revenue(TTM)2.38B
Net Income(TTM)668.45M
Analysts74.67
Price Target44.7 (11.42%)
Short Float %1.87%
Short Ratio2.5
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)-6.1%
PT rev (3m)-6.2%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)-17.17%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 17.59 | ||
| P/S | 4.77 | ||
| P/FCF | N/A | ||
| P/OCF | 11.92 | ||
| P/B | 1.67 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)2.41
EY6.01%
EPS(NY)2.28
Fwd EY5.69%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)3.36
OCFY8.39%
SpS8.41
BVpS24.09
TBVpS15.78
PEG (NY)N/A
PEG (5Y)2.06
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 | 1 |
F-Score7
WACC7.43%
ROIC/WACC0.54
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 2Y2.52%
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 2Y6.66%
Revenue Next 3Y6.63%
Revenue Next 5Y6.32%
EBIT growth 1Y30.58%
EBIT growth 3Y7.93%
EBIT growth 5Y17.37%
EBIT Next Year58.93%
EBIT Next 3Y23.72%
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 16.65 and the Price/Book (PB) ratio is 1.67.
How financially healthy is ESSENTIAL UTILITIES INC?
The financial health rating of ESSENTIAL UTILITIES INC (WTRG) is 0 / 10.