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WTRG

Essential UtilitiesNYSE:WTRG Stock Report

Market Cap

US$11.9b

7D

1.1%

1Y

1.1%

Updated

02 Dec, 2021

Data

Company Financials +
WTRG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health0/6
Dividends5/6

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

American Water Works Company

NYSE:AWK

US$30.5b

American States Water

NYSE:AWR

US$3.5b

California Water Service Group

NYSE:CWT

US$3.4b

SJW Group

NYSE:SJW

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Essential Utilities
Historical stock prices
Current Share PriceUS$48.55
52 Week HighUS$51.42
52 Week LowUS$41.11
Beta0.56
1 Month Change2.71%
3 Month Change-1.78%
1 Year Change1.10%
3 Year Change38.64%
5 Year Change60.87%
Change since IPO2,157.69%

Recent News & Updates

Nov 19
If You Like EPS Growth Then Check Out Essential Utilities (NYSE:WTRG) Before It's Too Late

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...

Nov 01
Essential Utilities (NYSE:WTRG) Is Increasing Its Dividend To US$0.27

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...

Sep 18

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.

Shareholder Returns

WTRGUS Water UtilitiesUS Market
7D1.1%-1.0%-3.5%
1Y1.1%11.3%19.4%

Return vs Industry: WTRG underperformed the US Water Utilities industry which returned 8.6% over the past year.

Return vs Market: WTRG underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is WTRG's price volatile compared to industry and market?
WTRG volatility
WTRG Average Weekly Movement2.6%
Water Utilities Industry Average Movement3.4%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
18863,180Chris Franklinhttps://www.essential.co

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

How do Essential Utilities's earnings and revenue compare to its market cap?
WTRG fundamental statistics
Market CapUS$11.93b
Earnings (TTM)US$417.81m
Revenue (TTM)US$1.82b

29.4x

P/E Ratio

6.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTRG income statement (TTM)
RevenueUS$1.82b
Cost of RevenueUS$830.11m
Gross ProfitUS$986.34m
ExpensesUS$568.53m
EarningsUS$417.81m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.65
Gross Margin54.30%
Net Profit Margin23.00%
Debt/Equity Ratio111.7%

How did WTRG perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

62%

Payout Ratio

Valuation

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

29.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTRG ($48.55) 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 (29.4x) compared to the US Water Utilities industry average (36.4x).

PE vs Market: WTRG is poor value based on its PE Ratio (29.4x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: WTRG is poor value based on its PEG Ratio (3.3x)


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).


Future Growth

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

9.0%

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%).


Past Performance

How has Essential Utilities performed over the past 5 years?

11.5%

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.


Financial Health

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).


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 (1.37%).

High Dividend: WTRG's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Chris Franklin (56 yo)

6.42yrs

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 ($USD7.17M) is below average for companies of similar size in the US market ($USD11.11M).

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 (6.3 years average tenure).


Board Members

Experienced Board: WTRG's board of directors are considered experienced (3.3 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Essential Utilities, Inc.'s 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$11.935b
  • Shares outstanding: 252.74m
  • Website: https://www.essential.co

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:32
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
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.