WTRG Stock Overview
Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States.
Essential Utilities Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$48.44|
|52 Week High||US$51.42|
|52 Week Low||US$41.11|
|1 Month Change||2.91%|
|3 Month Change||-2.40%|
|1 Year Change||6.98%|
|3 Year Change||42.22%|
|5 Year Change||63.04%|
|Change since IPO||2,152.58%|
Recent News & Updates
If You Like EPS Growth Then Check Out Essential Utilities (NYSE:WTRG) Before It's Too Late
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Essential Utilities (NYSE:WTRG) Is Increasing Its Dividend To US$0.27
Essential Utilities, Inc.'s ( NYSE:WTRG ) dividend will be increasing to US$0.27 on 1st of December. This makes the...
Why Essential Utilities Remains A Buy
Essential Utilities' non-GAAP EPS payout ratio will remain in the low-60% range this year, which is within its long-term payout target of 60% to 65%. WTRG grew its second-quarter revenue by 3.3% year over year while its non-GAAP EPS advanced 10.3% during that time. Balance sheet remains firmly investment grade with respective A and Baa2 credit ratings from S&P and Moody's. Essential Utilities is trading at a 6% premium to fair value, which is an acceptable premium to pay for a company of its quality. 2.3% dividend yield, 6-7% annual earnings growth, and 0.6% annual valuation multiple contraction offer investors a high likelihood of 8-9% annual total returns over the next decade.
|WTRG||US Water Utilities||US Market|
Return vs Industry: WTRG underperformed the US Water Utilities industry which returned 10.7% over the past year.
Return vs Market: WTRG underperformed the US Market which returned 21.3% over the past year.
|WTRG Average Weekly Movement||2.4%|
|Water Utilities Industry Average Movement||3.2%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
Stable Share Price: WTRG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: WTRG's weekly volatility (2%) has been stable over the past year.
About the Company
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 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.
Essential Utilities Fundamentals Summary
|WTRG fundamental statistics|
Is WTRG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WTRG income statement (TTM)|
|Cost of Revenue||US$830.11m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.65|
|Net Profit Margin||23.00%|
How did WTRG perform over the long term?See historical performance and comparison
2.2%Current Dividend Yield
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 ($48.44) is trading above our estimate of fair value ($30.41)
Significantly Below Fair Value: WTRG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WTRG is good value based on its PE Ratio (29.3x) compared to the US Water Utilities industry average (36.3x).
PE vs Market: WTRG is poor value based on its PE Ratio (29.3x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: WTRG is poor value based on its PEG Ratio (3.2x)
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 (3.2x).
How is Essential Utilities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WTRG's forecast earnings growth (9% per year) is above the savings rate (2%).
Earnings vs Market: WTRG's earnings (9% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: WTRG's earnings are forecast to grow, but not significantly.
Revenue vs Market: WTRG's revenue (7.1% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: WTRG's revenue (7.1% 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 (9.6%).
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 (23%) are higher than last year (20.3%).
Past Earnings Growth Analysis
Earnings Trend: WTRG's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: WTRG's earnings growth over the past year (69.6%) exceeds its 5-year average (11.5% per year).
Earnings vs Industry: WTRG earnings growth over the past year (69.6%) exceeded the Water Utilities industry 15.3%.
Return on Equity
High ROE: WTRG's Return on Equity (8.1%) is considered low.
How is Essential Utilities's financial position?
Financial Position Analysis
Short Term Liabilities: WTRG's short term assets ($352.5M) do not cover its short term liabilities ($516.0M).
Long Term Liabilities: WTRG's short term assets ($352.5M) do not cover its long term liabilities ($8.6B).
Debt to Equity History and Analysis
Debt Level: WTRG's net debt to equity ratio (111.5%) is considered high.
Reducing Debt: WTRG's debt to equity ratio has increased from 101.4% to 111.7% over the past 5 years.
Debt Coverage: WTRG's debt is not well covered by operating cash flow (11.3%).
Interest Coverage: WTRG's interest payments on its debt are not well covered by EBIT (3x coverage).
What is Essential Utilities's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WTRG's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: WTRG's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: WTRG's dividends per share have been stable in the past 10 years.
Growing Dividend: WTRG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (62.4%), WTRG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WTRG's dividends in 3 years are forecast to be covered by earnings (60.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Franklin (56 yo)
Mr. Christopher H. Franklin, also known as Chris, serves as Director at Allegheny Conference on Community Development since November 2020. He has been Chief Executive Officer and President at Essential Uti...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD7.17M) is below average for companies of similar size in the US market ($USD11.11M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Experienced Management: WTRG's management team is seasoned and experienced (6.2 years average tenure).
Experienced Board: WTRG's board of directors are considered experienced (3.3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.
Essential Utilities, Inc.'s 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$11.940b
- Shares outstanding: 252.74m
- Website: https://www.essential.co
Number of Employees
- Essential Utilities, Inc.
- 762 West Lancaster Avenue
- Bryn Mawr
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/30 00:13|
|End of Day Share Price||2021/11/29 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.