Essential Utilities Inc
NYSE:WTRG
US |
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
|
US |
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
|
US |
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
|
US |
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
|
US |
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
|
US |
American Express Co
NYSE:AXP
|
Financial Services
|
|
US |
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
|
US |
Visa Inc
NYSE:V
|
Technology
|
|
CN |
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
|
US |
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
|
US |
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
|
US |
Coca-Cola Co
NYSE:KO
|
Beverages
|
|
US |
Target Corp
NYSE:TGT
|
Retail
|
|
US |
Walt Disney Co
NYSE:DIS
|
Media
|
|
US |
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
|
US |
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
33.49
41.49
|
Price Target |
|
We'll email you a reminder when the closing price reaches USD.
Choose the stock you wish to monitor with a price alert.
Johnson & Johnson
NYSE:JNJ
|
US | |
Estee Lauder Companies Inc
NYSE:EL
|
US | |
Exxon Mobil Corp
NYSE:XOM
|
US | |
Church & Dwight Co Inc
NYSE:CHD
|
US | |
Pfizer Inc
NYSE:PFE
|
US | |
American Express Co
NYSE:AXP
|
US | |
Nike Inc
NYSE:NKE
|
US | |
Visa Inc
NYSE:V
|
US | |
Alibaba Group Holding Ltd
NYSE:BABA
|
CN | |
3M Co
NYSE:MMM
|
US | |
JPMorgan Chase & Co
NYSE:JPM
|
US | |
Coca-Cola Co
NYSE:KO
|
US | |
Target Corp
NYSE:TGT
|
US | |
Walt Disney Co
NYSE:DIS
|
US | |
Mueller Industries Inc
NYSE:MLI
|
US | |
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Intrinsic Value
The intrinsic value of one WTRG stock under the Base Case scenario is 51.52 USD. Compared to the current market price of 39.05 USD, Essential Utilities Inc is Undervalued by 24%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
Valuation Backtest
Essential Utilities Inc
Uncover deeper insights with the Valuation Backtest. Learn how current stock valuations stack up against historical averages to gauge true investment potential.
Start backtest now and learn if your stock is truly undervalued or overvalued!
Stock is trading at its lowest valuation over the past 5 years.
To access the results of this valuation backtest, please register an account with us. Registration is quick and gives you instant access to insights on 3 stocks per week for free.
The backtest for WTRG cannot be conducted due to limitations such as insufficient data or other constraints. Please select a different stock or adjust your settings.
Fundamental Analysis
Select up to 3 indicators:
Select up to 3 indicators:
Months
Months
Months
Months
Select up to 2 periods:
Essential Utilities Inc. is a formidable player in the essential services sector, primarily focused on providing water, wastewater, and natural gas distribution services across North America. Established as Aqua America in the late 19th century, the company has transformed over the years, adopting the name Essential Utilities to reflect its commitment to delivering basic services that underpin the everyday lives of its customers. By strategically acquiring and integrating local utilities, Essential Utilities has expanded its footprint significantly, serving millions of residents and positioning itself as a key provider in the often-regulated utility market. Investors are drawn to the company...
Essential Utilities Inc. is a formidable player in the essential services sector, primarily focused on providing water, wastewater, and natural gas distribution services across North America. Established as Aqua America in the late 19th century, the company has transformed over the years, adopting the name Essential Utilities to reflect its commitment to delivering basic services that underpin the everyday lives of its customers. By strategically acquiring and integrating local utilities, Essential Utilities has expanded its footprint significantly, serving millions of residents and positioning itself as a key provider in the often-regulated utility market. Investors are drawn to the company not only for its stable revenue streams but also for its growth potential, bolstered by infrastructure investments and an increasing focus on sustainable practices.
In recent years, Essential Utilities has made waves by not only modernizing its infrastructure but also incorporating innovative water conservation technologies and renewable energy solutions into its operations. This forward-thinking approach aligns with the growing demand for environmental responsibility and the need for robust water management strategies in the face of climate changes. From a financial perspective, the company has demonstrated consistent revenue growth and solid dividend payments, reinforcing its appeal as a defensive stock during market volatility. For investors, Essential Utilities offers a unique blend of reliable income generation and proactive sustainability initiatives, making it a compelling choice for those seeking to balance stability with opportunity in their portfolios.
Essential Utilities Inc., primarily known for its operations in the water and natural gas utility sectors, operates in the following core business segments:
-
Water Utility Operations: This is the largest segment, encompassing the procurement, treatment, and distribution of water to residential, commercial, and industrial customers. The company operates in several states across the U.S., focusing on providing clean and safe drinking water while also investing in infrastructure improvements.
-
Natural Gas Utility Operations: This segment involves the distribution of natural gas to residential and commercial customers. It includes the operation and expansion of gas distribution networks in select markets. Essential Utilities emphasizes safety, reliability, and customer service in this segment as well.
-
Additional Services and Ancillary Support: This includes non-regulated activities that may involve innovation in water and wastewater management, as well as other utility-related services that support the primary operations.
Essential Utilities focuses on capital investments to support infrastructure modernization and environmental sustainability, aligning with regulatory standards and addressing future challenges in utility demand and climate change. The company’s strategy generally includes mergers and acquisitions to expand its customer base and geographic reach, enhancing overall growth potential.
Essential Utilities Inc. (formerly known as Aqua America, Inc.) operates in the water and wastewater utility sector. Its unique competitive advantages can be summarized as follows:
-
Regulated Monopoly: Essential Utilities operates in a heavily regulated industry where utilities often enjoy monopolistic positions in their service areas. This regulatory framework limits competition and provides stability in revenue and cash flow.
-
Diversified Service Portfolio: The company offers both water and wastewater service, which allows for cross-selling opportunities and reduces reliance on any single service line. This diversification can also lead to operational efficiencies.
-
Geographic Reach: Essential Utilities operates in multiple states, which helps to spread risk and leverage regional synergies. Their presence in both the Mid-Atlantic and Midwest provides access to varied customer bases and regulatory environments.
-
Investment in Infrastructure: The company has been proactive in investing in water and wastewater infrastructure. This commitment to modernizing and maintaining its systems enhances operational efficiency, ensures regulatory compliance, and improves service quality.
-
Sustainability Initiatives: Essential Utilities emphasizes sustainability and environmental stewardship. This commitment can enhance the company’s reputation and may attract environmentally conscious investors and customers.
-
Strong Regulatory Relationships: Establishing and maintaining strong relationships with regulatory bodies can provide Essential Utilities with a competitive edge in obtaining rate approvals and navigating regulatory challenges.
-
Acquisition Strategy: The company has a robust strategy for acquiring smaller utility systems, which allows it to achieve economies of scale, expand its customer base, and enhance service offerings.
-
Customer Service Orientation: Essential Utilities has focused on improving customer service and engagement, which can lead to higher customer satisfaction and retention rates compared to competitors.
-
Experienced Management Team: The company benefits from a seasoned management team with extensive expertise in the utility sector, providing strategic insight and industry knowledge that can help maneuver competitive challenges.
-
Stable Revenue Model: The nature of utility services—having consistent demand regardless of economic conditions—provides a level of revenue stability that is attractive to investors.
These competitive advantages position Essential Utilities favorably within the water and wastewater utility sector, enabling it to navigate challenges and capitalize on opportunities effectively.
Essential Utilities Inc. operates in the water and natural gas distribution sectors, which inherently come with various risks and challenges, especially in the near future. Some of the key risks and challenges include:
-
Regulatory Risks: As a utility provider, Essential Utilities is heavily regulated by federal, state, and local agencies. Changes in regulatory frameworks, such as alterations to rate-setting processes, environmental regulations, or safety standards, can impact profitability and operational capabilities.
-
Infrastructure Investment Needs: Aging infrastructure requires significant capital investment for upgrades and replacements. Failure to adequately invest may lead to service interruptions, compliance failures, and increased costs over time.
-
Environmental Concerns: Increasing scrutiny regarding environmental impact may lead to stricter regulations pertaining to water quality and emissions from natural gas operations. Adapting to these changes may require additional investments and operational adjustments.
-
Climate Change Impact: Variability in weather patterns and prolonged droughts can affect water supply and demand. Additionally, extreme weather events may disrupt operations or damage infrastructure, leading to increased repair costs and service outages.
-
Economic Factors: Economic downturns can reduce consumer spending and potentially affect revenue from utility services. Inflationary pressures can lead to higher operational costs, which may not be easily passed on to consumers.
-
Competition and Market Changes: While utilities typically have a monopoly in their regions, the emergence of alternative water sourcing and energy options (e.g., residential solar energy) can challenge traditional models and put pressure on pricing.
-
Cybersecurity Threats: As utilities increasingly rely on digital technology for operations and customer management, the risk of cyberattacks rises. A successful attack could disrupt services, expose sensitive customer data, and lead to significant financial and reputational damage.
-
Labor Challenges: The utility sector may face labor shortages, especially as experienced workers retire. Recruiting and retaining talent is necessary for maintaining service levels and operational efficiency.
-
Customer Expectations: As consumers become more environmentally conscious, they may demand more sustainable practices and transparency from utility providers, which could necessitate significant operational changes and costs.
-
Interest Rate Fluctuations: Rising interest rates can increase the cost of borrowing for essential capital projects, affecting the ability to finance growth and infrastructure improvements effectively.
In summary, while Essential Utilities Inc operates in a vital sector with stable demand, it faces numerous risks that can complicate its ability to deliver consistent service and maintain profitability in the near future. Addressing these challenges proactively will be crucial for sustaining growth and meeting stakeholder expectations.
Revenue & Expenses Breakdown
Essential Utilities Inc
Balance Sheet Decomposition
Essential Utilities Inc
Current Assets | 362.7m |
Cash & Short-Term Investments | 18.8m |
Receivables | 139.8m |
Other Current Assets | 204.1m |
Non-Current Assets | 16.9B |
PP&E | 12.6B |
Intangibles | 2.3B |
Other Non-Current Assets | 2B |
Current Liabilities | 629.2m |
Accounts Payable | 204.8m |
Accrued Liabilities | 208.1m |
Short-Term Debt | 93.3m |
Other Current Liabilities | 123m |
Non-Current Liabilities | 10.5B |
Long-Term Debt | 7B |
Other Non-Current Liabilities | 3.4B |
Earnings Waterfall
Essential Utilities Inc
Revenue
|
2B
USD
|
Cost of Revenue
|
-220m
USD
|
Gross Profit
|
1.7B
USD
|
Operating Expenses
|
-1B
USD
|
Operating Income
|
705m
USD
|
Other Expenses
|
-159m
USD
|
Net Income
|
546m
USD
|
Free Cash Flow Analysis
Essential Utilities Inc
USD | |
Free Cash Flow | USD |
WTRG Profitability Score
Profitability Due Diligence
Essential Utilities Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Essential Utilities Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
WTRG Solvency Score
Solvency Due Diligence
Essential Utilities Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Score
Essential Utilities Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WTRG Price Targets Summary
Essential Utilities Inc
According to Wall Street analysts, the average 1-year price target for WTRG is 46.92 USD with a low forecast of 40.36 USD and a high forecast of 63 USD.
Dividends
Current shareholder yield for WTRG is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Ownership
WTRG Insider Trading
Buy and sell transactions by insiders
Period | Sold | Bought | Net |
---|---|---|---|
3 Months |
|
|
|
6 Months |
|
|
|
9 Months |
|
|
|
12 Months |
|
|
|
Profile
Country
Industry
Market Cap
Dividend Yield
Description
Essential Utilities, Inc. is a holding company, which engages in the provision of water and wastewater services through its subsidiaries. The company is headquartered in Bryn Mawr, Pennsylvania and currently employs 3,211 full-time employees. Its subsidiaries, Aqua Pennsylvania, Inc. provides water or wastewater services to approximately 50% of the total number of water and wastewater customers it serves. Aqua Pennsylvania, Inc.’s service territory is located in the suburban areas in counties north and west of the City of Philadelphia and in approximately 27 other counties in Pennsylvania. The company has two segments. The Regulated Water segment consists of water and wastewater regulated utility companies, which are organized by the states where it provides water and wastewater services. The Regulated Natural Gas segment consists of natural gas utility companies, acquired in the Peoples Gas Acquisition, for which it provides natural gas distribution services.
Contact
IPO
Employees
Officers
The intrinsic value of one WTRG stock under the Base Case scenario is 51.52 USD.
Compared to the current market price of 39.05 USD, Essential Utilities Inc is Undervalued by 24%.