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Essential Utilities Inc
🇺🇸 WTRG · NYSE/NASDAQ · US29670G1022
Utilities
USD 40.09 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 40.09 ÷ 1.96 = 20.6
TTM period through: 2026-06-30
Forward P/E (estimated): 17.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.7
Net Debt/EBITDA (TTM)
6.3x
Latest quarter: 28.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 28.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
8.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.73%
TTM: 3.39%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.73%
Trailing Yield (TTM, last 12 months): 3.39%
Payout Ratio (Fwd)
73.6%
TTM: 69.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 73.6%
Payout (TTM): 69.8%
Cash Flow Payout (TTM): 37.7%
FCF Coverage (TTM): -1.26x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
6.6%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 11 Aug 2027 | — | USD | 0.361 |
| Forecast* | Quarterly | — | 12 May 2027 | — | USD | 0.343 |
| Forecast* | Quarterly | — | 09 Feb 2027 | — | USD | 0.343 |
| Forecast* | Quarterly | — | 12 Nov 2026 | — | USD | 0.343 |
| Declared | Quarterly | 29 Jul 2026 | 11 Aug 2026 | 01 Sep 2026 | USD | 0.361 |
| Paid | Quarterly | 17 Feb 2026 | 12 May 2026 | 01 Jun 2026 | USD | 0.343 |
| Paid | Quarterly | 23 Jan 2026 | 09 Feb 2026 | 02 Mar 2026 | USD | 0.343 |
| Paid | Quarterly | 23 Oct 2025 | 12 Nov 2025 | 01 Dec 2025 | USD | 0.343 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Essential Utilities is a premier regulated water and gas monopoly with an exceptional dividend history and highly predictable revenues. While the underlying business quality is excellent and the 3.39% yield remains secure, the pending structural merger with American Water Works effectively pegs WTRG's share price to the acquirer, limiting independent price appreciation. Existing holders should maintain to capture the dividend and eventual merger benefits, but new capital may find better standalone growth opportunities elsewhere.
Sector Context
Regulated Water and Gas Utilities operate as state-sanctioned monopolies. They are required to make heavy infrastructure investments but are guaranteed a rate of return (ROE) on that capital by regulators. This creates a highly defensive, predictable environment for Dividend Growth Investing, though it often involves running with negative free cash flow and high debt loads.
📊 Strategy Analysis
- • Irreplaceable regulated water and gas monopoly, providing exceptional cash flow visibility
- • Attractive valuation for a utility infrastructure asset with a P/FFO of 11.02x
- • Proven dividend reliability offering a secure 3.39% TTM yield, supported by consistent regulatory rate base growth
- • Beneficiary of regulatory environments where heavy compliance capex (e.g., PFAS remediation) directly translates into guaranteed rate-base earnings growth
⚠ What to Watch
- • The pending all-stock merger with American Water Works essentially tethers WTRG's share price to the acquirer's valuation, capping independent upside
- • Persistently negative free cash flow (-$51.1M) driven by immense, mandated environmental capital expenditure requirements
- • Elevated leverage with Net Debt/EBITDA at 6.27x necessitates continuous access to debt markets to fund ongoing infrastructure overhauls
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.