Essential Utilities, Inc. (WTRG) Valuation — DCF, Graham & Comparables

Essential Utilities, Inc. (WTRG) — Price $38.67 — Utilities — Regulated Water — NYSE

Latest reported results:

Valuation dashboard for Essential Utilities, Inc. (WTRG) with P/E 20.09, P/B 1.59, EV/EBITDA 14.51 and dividend yield 3.53%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Utilities companies.

Essential Utilities, Inc. is a diversified utility enterprise that, through its various operating units, delivers vital water, wastewater, and natural gas services within the United States. Its operations extend beyond direct utility provision, encompassing contractual management and maintenance of water systems for municipal authorities and other organizations.

Analysis Summary

Essential Utilities, Inc. reported revenue of $2.47B in the most recent fiscal year, growing at a 5-year CAGR of 11.1%. Net income reached $616.4M, with a 16.7% 5-year CAGR.

Trailing-twelve-month margins: gross margin 53.5%, operating margin 35.1%, net margin 21.6%.

At the current price of $38.67, WTRG trades at a P/E of 20.09 and an ROE of 8.05%. Market capitalisation stands at $11.0B, placing it among large-cap names.

Balance sheet quality for WTRG: current ratio of 0.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio20.09
Price / Book1.59
EV / EBITDA14.51
Dividend Yield3.53%

Valuation Models

DCF Fair Value$-48.93
vs Current Price-226.5%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
WTRGEssential Utilities, Inc.$11.2B20.091.598.0%
BIPBrookfield Infrastructure Partners L.P.$16.8B50.893.227.6%
EMAEmera Incorporated$14.6B21.581.467.5%
PNWPinnacle West Capital Corporation$11.6B18.411.659.0%
AESThe AES Corporation$10.6B5.672.1513.8%
OGEOGE Energy Corp.$9.4B19.901.889.6%
IDAIDACORP, Inc.$7.6B21.711.969.4%
AWRAmerican States Water Company$3.2B22.292.9112.5%

Price

Price$38.67
Market Cap$11.0B
ExchangeNYSE
CountryUS

Profitability

Return on Equity8.05%
Return on Invested Capital4.40%
Return on Assets2.78%
Gross Margin53.48%
Operating Margin35.06%
Net Margin21.60%

Related companies: AES · AWR · BIP · CWT · EMA · IDA · OGE

Explore sector: Utilities · Regulated Water

More sections of WTRG: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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