Essential Utilities, Inc. (WTRG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consolidated Water Co. Ltd.

Artesian Resources Corp.

SJW Group

California Water Service Group

American States Water Co.

Middlesex Water Co.

Essential Utilities, Inc.

Aris Water Solutions, Inc.

The York Water Co.

American Water Works Co., Inc.

Select Water Solutions, Inc.

Why is Essential Utilities, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 16.07% and Operating profit at 15.40%

Flat results in Jun 25

NET SALES(Q) At USD 514.91 MM has Fallen at -8.77%
PRE-TAX PROFIT(Q) At USD 112.43 MM has Fallen at -22.48%
NET PROFIT(Q) At USD 107.85 MM has Fallen at -29.51%

With ROCE of 6.10%, it has a expensive valuation with a 1.30 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.46%, its profits have risen by 7.1% ; the PEG ratio of the company is 2.7

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Essential Utilities, Inc. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Essential Utilities, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Essential Utilities, Inc.

6.41%

0.08

23.04%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.40%

EBIT Growth (5y)

15.97%

EBIT to Interest (avg)

2.75

Debt to EBITDA (avg)

6.53

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

0.16

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

58.32%

Pledged Shares

Institutional Holding

84.59%

ROCE (avg)

5.61%

ROE (avg)

8.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.77

EV to EBIT

21.68

EV to EBITDA

15.14

EV to Capital Employed

1.36

EV to Sales

8.40

PEG Ratio

1.19

Dividend Yield

2.93%

ROCE (Latest)

6.26%

ROE (Latest)

9.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 952.18 MM

ROCE(HY)

Highest at 10.29%

DIVIDEND PER SHARE(HY)

Highest at USD 10.65

RAW MATERIAL COST(Y)

Fallen by 1.07% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 58.04 %

-8What is not working for the Company

NET SALES(Q)

At USD 476.97 MM has Fallen at -18.4%

NET PROFIT(Q)

At USD 90.25 MM has Fallen at -44.01%

PRE-TAX PROFIT(Q)

At USD 94.46 MM has Fallen at -38.62%

Here's what is working for Essential Utilities, Inc.

Dividend per share

Highest at USD 10.65 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 952.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 58.04 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by 1.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 107.07 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Essential Utilities, Inc.

Net Sales

At USD 476.97 MM has Fallen at -18.4%

over average net sales of the previous four periods of USD 584.54 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Net Profit

At USD 90.25 MM has Fallen at -44.01%

over average net sales of the previous four periods of USD 161.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

At USD 94.46 MM has Fallen at -38.62%

over average net sales of the previous four periods of USD 153.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)