Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States.
High growth potential established dividend payer.
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's share price has been volatile over the past 3 months.
7 Day Return
US Water Utilities
1 Year Return
US Water Utilities
Return vs Industry: WTRG matched the US Water Utilities industry which returned 11% over the past year.
Return vs Market: WTRG exceeded the US Market which returned -11.9% over the past year.
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
1 week ago | Simply Wall StHow Does Essential Utilities's (NYSE:WTRG) P/E Compare To Its Industry, After The Share Price Drop?
2 weeks ago | Simply Wall StDoes Essential Utilities, Inc.'s (NYSE:WTRG) CEO Salary Reflect Performance?
1 month ago | Simply Wall StIs Essential Utilities, Inc.'s (NYSE:WTRG) High P/E Ratio A Problem For Investors?
Is Essential Utilities undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WTRG ($40.42) is trading above our estimate of fair value ($23.32)
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 (38.8x) compared to the Water Utilities industry average (35.3x).
PE vs Market: WTRG is poor value based on its PE Ratio (38.8x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: WTRG is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: WTRG is good value based on its PB Ratio (2.3x) compared to the US Water Utilities industry average (2.6x).
How is Essential Utilities forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WTRG's forecast earnings growth (30.1% per year) is above the savings rate (1.7%).
Earnings vs Market: WTRG's earnings (30.1% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WTRG's revenue (36.9% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: WTRG's revenue (36.9% per year) is forecast to grow faster 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 (8.5%).
How has Essential Utilities performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WTRG has high quality earnings.
Growing Profit Margin: WTRG's current net profit margins (25.2%) are higher than last year (22.9%).
Past Earnings Growth Analysis
Earnings Trend: WTRG's earnings have declined by -2.7% per year over the past 5 years.
Accelerating Growth: WTRG's earnings growth over the past year (17%) exceeds its 5-year average (-2.7% per year).
Earnings vs Industry: WTRG earnings growth over the past year (17%) exceeded the Water Utilities industry 4.5%.
Return on Equity
High ROE: WTRG's Return on Equity (5.8%) is considered low.
How is Essential Utilities's financial position?
Financial Position Analysis
Short Term Liabilities: WTRG's short term assets ($2.0B) exceed its short term liabilities ($318.8M).
Long Term Liabilities: WTRG's short term assets ($2.0B) do not cover its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: WTRG's debt to equity ratio (79.5%) is considered high.
Reducing Debt: WTRG's debt to equity ratio has reduced from 98.9% to 79.5% over the past 5 years.
Debt Coverage: WTRG's debt is not well covered by operating cash flow (11%).
Interest Coverage: WTRG's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Inventory Level: WTRG has a high level of physical assets or inventory.
Debt Coverage by Assets: WTRG's debt is not covered by short term assets (assets are 0.7x debt).
What is Essential Utilities's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WTRG's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: WTRG's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: WTRG's dividends per share have been stable in the past 10 years.
Growing Dividend: WTRG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87%), WTRG's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WTRG's dividends in 3 years are forecast to be covered by earnings (65% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Franklin (54yo)
Mr. Christopher H. Franklin, also known as Chris, has been Chief Executive Officer and President at at Essential Utilities Inc. since July 1, 2015 and its Chairman since January 1, 2018. He has been a Dire ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD3.55M) is below average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||1.42yrs||US$1.20m||0.0098% $972.6k|
|Executive VP & COO||4.67yrs||US$1.27m||0.012% $1.2m|
|Executive VP||7.92yrs||US$878.96k||0.016% $1.6m|
|Executive Vice President of Strategy & Corporate Development||1.75yrs||US$1.32m||0.0040% $399.1k|
|Senior VP||16yrs||no data||0.036% $3.6m|
|Chief Information Officer||3.92yrs||no data||no data|
|Senior VP & Chief Administrative Officer||4yrs||no data||no data|
|VP & Chief of Staff||no data||no data||no data|
|Senior VP & Chief Human Resources Officer||1.83yrs||no data||no data|
Experienced Management: WTRG's management team is considered experienced (4 years average tenure).
|Chairman Emeritus||2.17yrs||US$182.52k||0.0096% $947.8k|
|Independent Director||1.58yrs||US$39.92k||0.0054% $536.8k|
|Independent Director||0.83yr||no data||0.00062% $61.4k|
|Lead Independent Director||2.25yrs||US$183.77k||0.0072% $717.0k|
|Independent Director||13.58yrs||US$169.39k||0.012% $1.2m|
|Independent Director||1.58yrs||US$39.99k||0.0013% $132.7k|
|Independent Director||0.75yr||no data||0.00062% $61.4k|
|Independent Director||no data||no data||no data|
Experienced Board: WTRG's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WTRG insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.2%.
Essential Utilities, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Essential Utilities, Inc.
- Ticker: WTRG
- Exchange: NYSE
- Founded: 1886
- Industry: Water Utilities
- Sector: Utilities
- Market Cap: US$9.904b
- Shares outstanding: 245.02m
- Website: https://www.essential.co
Number of Employees
- Essential Utilities, Inc.
- 762 West Lancaster Avenue
- Bryn Mawr
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WTRG||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1969|
|A2A||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1969|
|WTR *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1969|
Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States. It offers water services through operating and maintenance contracts with municipal authorities and other parties. The company also provides non-utility raw water supply services for firms in the natural gas drilling industry; and water and sewer line protection solutions, and repair services to households through a third-party. It serves approximately 3 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, and Virginia. The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 01:16|
|End of Day Share Price||2020/03/27 00:00|
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.