Essential Utilities WTRG
United StatesUtilities · Utilities - Regulated WaterUSD
42.20 USD (+9.5%)
5 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Essential Utilities is a US company that provides regulated water and natural gas services to approximately 5.5 million people across several states, generating recurring revenue through regulator-approved tariffs.
Key points
from its scores- ✓Favourable backdrop7.4
- ✓Attractive dividend7.2
- ✕Little competitive advantage3.8
- ✕Demanding valuation4.3
- ✕Weak growth4.6
AI analysis
bottom line, main risk, context and newsHold for its stable dividend and regulated business, but avoid adding positions until leverage is reduced or the rate environment stabilizes.
Essential Utilities has acceptable financial health (6.29) but with very high leverage (Net Debt/EBITDA of 6.32) that makes it vulnerable to a rising rate environment. Its dividend is attractive (net yield of 3.74%) and well covered, but the valuation (P/E 19.66) offers no margin of safety, and free cash flow conversion is negative (-48.71%), limiting its appeal as a value investment.
High leverage (Net Debt/EBITDA of 6.32) combined with a rising interest rate environment in the US, which makes refinancing more expensive and pressures its long-duration valuation.
Context and risks
Essential Utilities operates in a regulated water and gas sector in the US, where tariff reviews by state commissions are a recurring risk that can pressure margins. Its high leverage (Net Debt/EBITDA of 6.32) amplifies sensitivity to a rising interest rate environment, increasing the cost of its debt and limiting its investment capacity.
Is Essential Utilities stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 19.7 | 19.1 | +3% |
| EV / EBITDA | 14.4 | 12.2 | +18% |
| Price / book | 1.6 | 1.9 | −20% |
| Price / sales | 4.3 | 2.6 | +64% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.3 out of 10 (median for Utilities: 4.8).
Average analyst target: 42.20 USD, +9.5% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 19.7
- Forward P/E
- 16.2
- EV / EBITDA
- 14.4
- Price / book
- 1.6
- Price / sales
- 4.3
- PEG
- 3.46
- Market cap
- 10.9B USD
- Enterprise value
- 19.5B USD
Profitability
- ROE
- 8.1%
- ROA
- 3.0%
- ROIC (approx.)
- 5.8%
- Gross margin
- 56.4%
- Operating margin
- 35.4%
- Net margin
- 21.6%
- Free cash flow
- −657.6M USD
- FCF yield
- −6.0%
- Cash conversion
- −49%
Solvency
- Total debt
- 8.5B USD
- Net debt
- 8.5B USD
- Cash
- 8.6M USD
- EBITDA
- 1.3B USD
- Net debt / EBITDA
- 6.32
- Debt / equity
- 121.66
- Current ratio
- 0.78
- Quick ratio
- 0.53
Growth
- Revenue growth
- +3.1%
- Earnings growth
- −2.6%
- EPS (TTM)
- 1.96 USD
- EPS (forward)
- 2.38 USD
Dividend
- Dividend yield
- 3.7%
- Payout
- 69.9%
Risk and market
- Beta
- 0.62
- Analyst consensus
- Hold (5)
- Target price
- 42.20 USD
- 52-week range
- 36.11 – 42.51
Recent news
All WTRG news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Essential Utilities
Is Essential Utilities stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%). Valuation score: 4.3 out of 10 (median for Utilities: 4.8). Average analyst target: 42.20 USD, +9.5% versus the price. This is not investment advice.
What score does Essential Utilities get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,294 of 2,130 (better than 39% of the companies analysed). Its strongest category is Risk & Context (7.4) and its weakest, Quality / Moat (3.8). Analysis of 08/10/2026.
What is Essential Utilities's P/E ratio?
Its P/E is 19.7: the share price equals 19.7 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 16.2.
How much is Essential Utilities worth on the stock market?
Its market capitalisation is 10.9B USD and its enterprise value, debt included, is 19.5B USD.
How much debt does Essential Utilities have?
Its net debt (debt minus cash) is 8.5B USD. That is 6.32 times its EBITDA; the Utilities median is 5.33.
Does Essential Utilities pay a dividend?
Yes: its dividend yield is 3.74% and it pays out 70% of its earnings.
How has Essential Utilities stock performed over the last year?
It has fallen 1.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 36.11 and 42.51 USD. Past performance does not guarantee future results.
What do analysts think of Essential Utilities?
5 analysts cover it; their average recommendation is “Hold” and their average target is 42.20 USD (+9.5% versus the price). It is an estimate, not market data.