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 has a great profitability rating, there are quite some 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.
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
Looking at the Return On Assets, with a value of 3.54%, WTRG is in the better half of 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.
With a decent Return On Invested Capital value of 3.98%, WTRG is doing good in the industry, outperforming 73.33% 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 4.77%.
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 Profit Margin of 28.09%. This is amongst the best in the industry. WTRG outperforms 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.
WTRG has a Gross Margin of 84.94%. This is amongst the best in the industry. WTRG outperforms 86.67% of its industry peers.
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.
WTRG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WTRG has been increased compared to 5 years ago.
WTRG has a worse debt/assets ratio than last year.
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.
WTRG has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: WTRG underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.54
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.60 indicates that WTRG may have some problems paying its short term obligations.
WTRG has a worse Current ratio (0.60) than 73.33% of its industry peers.
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
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%.
The Revenue has been growing by 18.58% on average over the past years. This is quite good.
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-0.41%
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
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
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 80.00% of the companies in the same industry.
WTRG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.59 indicates a rather expensive valuation of WTRG.
73.33% of the companies in the same industry are more expensive than WTRG, based on the Price/Forward Earnings ratio.
WTRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WTRG is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
WTRG has an outstanding profitability rating, which 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%.
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 2.42, 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 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 2Y2.52%
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 Change4.88%
Ins Owners0.19%
Ins Owner Change3.02%
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
WACC7.4%
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.