📊 WTRG Key Takeaways
Is Essential Utilities, Inc. (WTRG) a Good Investment?
Essential Utilities demonstrates strong fundamental profitability with 37.2% operating margins and $514.7M free cash flow, but faces significant liquidity concerns with current ratio below 1.0 and minimal cash reserves relative to asset base. The extraordinary 145,209% revenue growth indicates major M&A activity that creates integration risk and uncertainty about normalized operating performance.
Why Buy Essential Utilities, Inc. Stock? WTRG Key Strengths
- Strong operating margin of 37.2% and net margin of 24.9% demonstrate pricing power in regulated utility sector
- Solid cash generation with $1.0B operating cash flow and positive $514.7M free cash flow supporting debt service
- Essential water utility business model provides stable, recurring revenue base with regulatory protection
WTRG Stock Risks: Essential Utilities, Inc. Investment Risks
- Liquidity stress: current ratio of 0.80x and quick ratio of 0.77x below 1.0x with only $34.8M cash against $19.5B assets
- Elevated debt burden with debt-to-equity of 1.18x and tight interest coverage ratio of 2.8x limiting financial flexibility
- Extraordinary 145,209% revenue growth suggests major acquisition or merger with unclear integration risks and normalized earnings impact
Key Metrics to Watch
- Current ratio trend and cash position improvement post-M&A integration
- Interest coverage ratio stability amid changing rate environment
- Operating cash flow sustainability and free cash flow adequacy for capex and debt reduction
Essential Utilities, Inc. (WTRG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
WTRG Profit Margin, ROE & Profitability Analysis
WTRG vs Utilities Sector: How Essential Utilities, Inc. Compares
How Essential Utilities, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Essential Utilities, Inc. Stock Overvalued? WTRG Valuation Analysis 2026
Based on fundamental analysis, Essential Utilities, Inc. appears fundamentally strong relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Essential Utilities, Inc. Balance Sheet: WTRG Debt, Cash & Liquidity
WTRG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Essential Utilities, Inc.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.86 reflects profitable operations.
WTRG Revenue Growth, EPS Growth & YoY Performance
WTRG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $435.3M | $69.4M | $0.25 |
| Q2 2025 | $434.4M | $75.4M | $0.28 |
| Q1 2025 | $612.1M | $265.8M | $0.97 |
| Q3 2024 | $411.3M | $69.4M | $0.25 |
| Q2 2024 | $434.4M | $75.4M | $0.28 |
| Q1 2024 | $612.1M | $191.4M | $0.72 |
| Q3 2023 | $411.3M | $68.6M | $0.26 |
| Q2 2023 | $436.7M | $82.3M | $0.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Essential Utilities, Inc. Dividends, Buybacks & Capital Allocation
WTRG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Essential Utilities, Inc. (CIK: 0000078128)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WTRG
What is the AI rating for WTRG?
Essential Utilities, Inc. (WTRG) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTRG's key strengths?
Claude: Strong operating margin of 37.2% and net margin of 24.9% demonstrate pricing power in regulated utility sector. Solid cash generation with $1.0B operating cash flow and positive $514.7M free cash flow supporting debt service.
What are the risks of investing in WTRG?
Claude: Liquidity stress: current ratio of 0.80x and quick ratio of 0.77x below 1.0x with only $34.8M cash against $19.5B assets. Elevated debt burden with debt-to-equity of 1.18x and tight interest coverage ratio of 2.8x limiting financial flexibility.
What is WTRG's revenue and growth?
Essential Utilities, Inc. reported revenue of $2.5B.
Does WTRG pay dividends?
Essential Utilities, Inc. pays dividends, with $373.8M distributed to shareholders in the trailing twelve months.
Where can I find WTRG SEC filings?
Official SEC filings for Essential Utilities, Inc. (CIK: 0000078128) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WTRG's EPS?
Essential Utilities, Inc. has a diluted EPS of $2.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WTRG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Essential Utilities, Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WTRG stock overvalued or undervalued?
Valuation metrics for WTRG: ROE of 9.0% (sector avg: 10%), net margin of 24.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy WTRG stock in 2026?
Our dual AI analysis gives Essential Utilities, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WTRG's free cash flow?
Essential Utilities, Inc.'s operating cash flow is $1.0B, with capital expenditures of $495.7M. FCF margin is 20.8%.
How does WTRG compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 24.9% (avg: 12%), ROE 9.0% (avg: 10%), current ratio 0.80 (avg: 0.8).