Essential Utilities, Inc.

Valuation Analysis

About the Company

Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments. It also provides utility service line protection solutions and repair services to households; gas marketing and production activities; and natural gas distribution services. The company serves approximately 5.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America, Inc. and changed its name to Esse

Essential Utilities, Inc. Stock at a Glance

Essential Utilities, Inc. (WTRG) is currently trading at $37.51 with a market capitalization of $10.6B. The trailing P/E ratio stands at 19.14x, with a forward P/E of 15.71x. The 52-week range spans from $36.11 to $42.37; the current price is 11.5% below the yearly high. Year-over-year revenue growth stands at +10.0%. The net profit margin stands at 21.82%.

💰 Dividend

Essential Utilities, Inc. pays an annual dividend of $1.37 per share, representing a yield of 3.65%. The payout ratio stands at 69.05%.

📊 Analyst Rating

5 analysts rate Essential Utilities, Inc. (WTRG) on consensus: Hold. The average price target is $39.80, implying +6.11% from the current price. Analyst price targets range from $37.00 to $43.00.

Essential Utilities, Inc.: The Investment Case in Detail

Essential Utilities, Inc. (WTRG) operates in the Utilities — specifically Utilities - Regulated Water — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10% pace year-over-year, suggesting the business model continues to find new customers and pricing power. The combination of a 55.52% gross margin and 36.08% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

Valuation in Context

At a PEG of 3.59, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 15.71x is meaningfully below the trailing 19.14x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The dividend yield near 3.65% combined with a payout ratio of 69.05% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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