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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consolidated Water Co. Ltd.

American Water Works Co., Inc.

American States Water Co.

Artesian Resources Corp.

SJW Group

California Water Service Group

Essential Utilities, Inc.

Middlesex Water Co.

Aris Water Solutions, Inc.

The York Water Co.

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 -2.04%, 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 -2.04% 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.

-3.24%

0.23

22.91%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.07%

EBIT Growth (5y)

15.40%

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

86.60%

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

1.65

EV to EBIT

21.26

EV to EBITDA

14.79

EV to Capital Employed

1.30

EV to Sales

8.16

PEG Ratio

2.67

Dividend Yield

3.23%

ROCE (Latest)

6.10%

ROE (Latest)

9.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 915.75 MM

ROCE(HY)

Highest at 10.02%

DIVIDEND PER SHARE(HY)

Highest at USD 9.44

RAW MATERIAL COST(Y)

Fallen by -3.91% (YoY

NET PROFIT(9M)

Higher at USD 575.57 MM

DEBT-EQUITY RATIO (HY)

Lowest at 115.66 %

INVENTORY TURNOVER RATIO(HY)

Highest at 15.32 times

-3What is not working for the Company

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%

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

Dividend per share

Highest at USD 9.44 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 915.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 115.66 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 15.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.91% (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 103.52 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 514.91 MM has Fallen at -8.77%

over average net sales of the previous four periods of USD 564.42 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 112.43 MM has Fallen at -22.48%

over average net sales of the previous four periods of USD 145.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 107.85 MM has Fallen at -29.51%

over average net sales of the previous four periods of USD 153 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)