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Market Cap

US$11.2b

Last Updated

2021/04/09 23:20 UTC

Data Sources

Company Financials +

Executive Summary

Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. More Details


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Essential Utilities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WTRG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WTRG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

WTRG

1.2%

US Water Utilities

1.6%

US Market


1 Year Return

1.9%

WTRG

9.2%

US Water Utilities

55.3%

US Market

Return vs Industry: WTRG underperformed the US Water Utilities industry which returned 9.2% over the past year.

Return vs Market: WTRG underperformed the US Market which returned 55.3% over the past year.


Shareholder returns

WTRGIndustryMarket
7 Day1.6%1.2%1.6%
30 Day7.2%10.2%4.1%
90 Day-6.7%-3.9%5.5%
1 Year4.2%1.9%11.1%9.2%58.1%55.3%
3 Year45.6%36.0%73.3%63.9%63.8%53.3%
5 Year59.9%42.4%103.6%84.9%120.2%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Essential Utilities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Essential Utilities undervalued compared to its fair value and its price relative to the market?

39.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTRG ($45.33) is trading above our estimate of fair value ($24.85)

Significantly Below Fair Value: WTRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WTRG is poor value based on its PE Ratio (39.7x) compared to the US Water Utilities industry average (33x).

PE vs Market: WTRG is poor value based on its PE Ratio (39.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: WTRG is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: WTRG is good value based on its PB Ratio (2.4x) compared to the US Water Utilities industry average (2.8x).


Future Growth

How is Essential Utilities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTRG's forecast earnings growth (18.8% per year) is above the savings rate (2%).

Earnings vs Market: WTRG's earnings (18.8% per year) are forecast to grow faster than the US market (18.7% per year).

High Growth Earnings: WTRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: WTRG's revenue (12.3% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: WTRG's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTRG's Return on Equity is forecast to be low in 3 years time (9.1%).


Past Performance

How has Essential Utilities performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTRG has high quality earnings.

Growing Profit Margin: WTRG's current net profit margins (19.5%) are lower than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: WTRG's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: WTRG's earnings growth over the past year (26.6%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: WTRG earnings growth over the past year (26.6%) exceeded the Water Utilities industry 12.6%.


Return on Equity

High ROE: WTRG's Return on Equity (6.1%) is considered low.


Financial Health

How is Essential Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: WTRG's short term assets ($380.2M) do not cover its short term liabilities ($603.9M).

Long Term Liabilities: WTRG's short term assets ($380.2M) do not cover its long term liabilities ($8.4B).


Debt to Equity History and Analysis

Debt Level: WTRG's debt to equity ratio (122%) is considered high.

Reducing Debt: WTRG's debt to equity ratio has increased from 102.7% to 122% over the past 5 years.

Debt Coverage: WTRG's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: WTRG's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

What is Essential Utilities's current dividend yield, its reliability and sustainability?

2.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WTRG's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: WTRG's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: WTRG's dividends per share have been stable in the past 10 years.

Growing Dividend: WTRG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.1%), WTRG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTRG's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Chris Franklin (55 yo)

5.75yrs

Tenure

US$7,173,359

Compensation

Mr. Christopher H. Franklin, also known as Chris, serves as Director at Allegheny Conference on Community Development since November 2020. He has been Chief Executive Officer and President at Essential Uti...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD7.17M) is below average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WTRG's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: WTRG's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Essential Utilities, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essential Utilities, Inc.
  • Ticker: WTRG
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$11.163b
  • Shares outstanding: 245.61m
  • Website: https://www.essential.co

Number of Employees


Location

  • Essential Utilities, Inc.
  • 762 West Lancaster Avenue
  • Bryn Mawr
  • Pennsylvania
  • 19010-3489
  • United States

Listings


Biography

Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. It offers water services through operating an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 23:20
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.