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Essential Utilities Inc
🇺🇸 WTRG · NYSE/NASDAQ
Utilities
Price at analysis: USD 40.56 Current price: USD 40.07 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.7
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: 40.56 ÷ 1.96 = 20.7
TTM period through: 2026-06-30
Forward P/E (estimated): 16.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.6
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
14.6x
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: 3.44%
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): 3.44%
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 |
| Paid | 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 provides highly defensive, regulated services that support a secure and growing 3.44% dividend yield. However, the pending all-stock acquisition by American Water Works functionally locks the stock price to a 0.305 conversion ratio, neutralizing independent upside potential. Existing holders should maintain positions to collect the dividend and eventual merger shares, but it is not recommended for new market-beating positions.
Sector Context
Essential Utilities operates regulated water and natural gas systems. Water utilities are classic DGI investments due to their localized monopolies and inelastic demand. While heavy capital expenditures for infrastructure and environmental compliance (like EPA PFAS rules) often lead to negative free cash flow and high debt, allowed rate bases and surcharge mechanisms generally guarantee long-term cost recovery.
📊 Strategy Analysis
- • Regulated monopoly operating essential water, wastewater, and natural gas infrastructure, providing highly predictable and recession-resistant revenue.
- • Reliable dividend growth track record (8 consecutive years with a 6.6% 5Y CAGR) offering a secure 3.44% TTM yield.
- • Favorable regulatory cost-recovery mechanisms (DSIC surcharges) and recent multi-million dollar PFAS litigation settlements ($56.6M+ total) help offset massive compliance capex.
⚠ What to Watch
- • Pending 0.305-for-1 all-stock merger with American Water Works functionally tethers WTRG's share price to the acquirer, severely capping independent upside until the expected Q1 2027 close.
- • Elevated valuation at 20.72x TTM P/E limits the margin of safety for new capital.
- • Deeply negative free cash flow (-$51.1M TTM) and elevated leverage (Net Debt/EBITDA of 6.27x) driven by immense, legally mandated upfront capital expenditures for PFAS environmental compliance.
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.