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Essential Utilities, Inc. (WTRG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Essential Utilities, Inc.

WTRGMarket cap $11BPrice $38.8

Country🇺🇸United States

SectorUtilities

IndustryWater Utilities

Supplies drinking water and wastewater services to millions of customers across nine states, making it one of the largest regulated water utilities in the US. Rate hikes and infrastructure upgrades keep revenue flowing steadier than the water itself.

In Bastion Portfolios?

52W Return-3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+0%3

Rev CAGR (3y)+5%4

Rev CAGR (5y)+5%4

Earnings Forecast

EPS Growth Y+1+3%4

EPS Growth Y+2+9%6

EPS Growth Y+3+7%6

Quality

Margins

EBIT Margin35%9

Net Income Margin22%8

Free Cash Flow Margin-18%2

Debt

Net Debt/EBITDA6.31

Efficiency

ROE8%4

ROA3%5

Earnings Stability1010

GEAR+AVERAGE50

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)165

P/E Ratio (Forward 3y)155

P/BV1.68

EV Multiples

EV/EBITDA Fwd144

EV/EBIT Fwd194

Yield

Free Cash Flow Yield-4.1%2

Dividend Yield3.7%8

Momentum

Short term

1 month return-7%4

3 month return+0%6

YTD return+4%5

Mid term

Price vs 52wHigh91%8

1 year return-1%4

Long term

3 year return+30%4

5 year return-3%3

Risk Shield

Price Risk

Beta-0.210

Volatility22%9

Free Cash Flow

Free Cash Flow Margin-18%2

Free Cash Flow Yield-4.1%2

Quality

ROCE5%3

Earnings Stability1010

Net Debt/EBITDA6.31

02Growth

Is it actually growing, and how fast?

WTRGEssential Utilities

Revenue FY25$2.5B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+0%3

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+3%4

EPS growth, FY27E+9%6

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 5%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 5%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

BOTTOM LINE

Steady Grower

Growth is a weak point here. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE41 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+0%6

YTD return+4%5

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return-1%4

3-year return+30%4

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's down 1% over the past year, now 9% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-7%), over three months (+0%) and so far this year (+4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+30% over three years and -3.5% over five), behind 60% of the market.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Essential Util. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

WTRGEssential Utilities

Revenue FY25$2.5B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+0%3

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+3%4

EPS growth, FY27E+9%6

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 5%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 5%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

BOTTOM LINE

Steady Grower

Growth is a weak point here. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE41 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+0%6

YTD return+4%5

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return-1%4

3-year return+30%4

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

It's down 1% over the past year, now 9% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-7%), over three months (+0%) and so far this year (+4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+30% over three years and -3.5% over five), behind 60% of the market.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Essential Util. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community