Essential Utilities Inc
NYSE:WTRG

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Essential Utilities Inc
NYSE:WTRG
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Price: 39.05 USD -1.84% Market Closed
Market Cap: 10.7B USD
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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:

WTRG Intrinsic Value
51.52 USD
Undervaluation 24%
Intrinsic Value
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Essential Utilities Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

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...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

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.

Positive Gross Profit
Positive Operating Income
Positive Net Income
Positive Revenue Growth Forecast
50/100
Profitability
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.

Long-Term Solvency
Average D/E
Short-Term Solvency
Low Altman Z-Score
35/100
Solvency
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

Wall Street analysts forecast WTRG stock price to rise over the next 12 months.

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.

Lowest
Price Target
40.36 USD
3% Upside
Average
Price Target
46.92 USD
20% Upside
Highest
Price Target
63 USD
61% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
Unsafe
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Safe
0
25
50
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100
Shareholder Yield

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?

Shareholder Yield
Dividend Yield
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Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

WTRG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Essential Utilities Inc Logo
Essential Utilities Inc

Country

United States of America

Industry

Utilities

Market Cap

10.7B USD

Dividend Yield

3.24%

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

PENNSYLVANIA
Bryn Mawr
762 W Lancaster Ave
+16105278000.0
www.essential.co

IPO

1981-05-22

Employees

3 211

Officers

Chairman, President & CEO
Mr. Christopher H. Franklin
Executive VP & CFO
Mr. Daniel J. Schuller Ph.D.
Executive VP & General Counsel
Mr. Christopher Paul Luning
Senior VP & Chief Human Resources Officer
Ms. Christina Kelly
President of Aqua Water
Ms. Colleen M. Arnold
Senior VP, Controller & Chief Accounting Officer
Mr. Robert A. Rubin
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VP & Chief Information Officer
Mr. Sumit Nair
Senior Vice President & Chief Administrative Officer
Ms. Whitney S. Kellett
Vice President of Investor Relations & Treasurer
Mr. Brian Dingerdissen
Vice President of Public Affairs
Mr. Dave Kralle
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See Also

Discover More
What is the Intrinsic Value of one WTRG stock?

The intrinsic value of one WTRG stock under the Base Case scenario is 51.52 USD.

Is WTRG stock undervalued or overvalued?

Compared to the current market price of 39.05 USD, Essential Utilities Inc is Undervalued by 24%.

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