📊 WTRG Key Takeaways
Is Essential Utilities, Inc. (WTRG) a Good Investment?
Essential Utilities exhibits strong operating margins (36%) but faces critical financial stress through negative free cash flow (-230M) driven by capital expenditure ($495.7M) exceeding operating cash generation ($265.4M). Liquidity concerns (current ratio 0.95x) combined with weak returns on equity (3.3%) and elevated leverage (1.21x debt-to-equity) indicate the capital-intensive utility business model is not sustainable at current funding levels.
Essential Utilities, Inc. Key Strengths (WTRG)
- High operating margin of 36% demonstrates pricing power within regulated utility framework
- Positive operating cash flow of 265.4M provides base for debt service and operational needs
- Regulated water utility sector offers essential service with predictable demand characteristics
WTRG Stock Risks: Essential Utilities, Inc. Investment Risks
- Negative free cash flow of -230.3M is structurally unsustainable given large annual CapEx requirements exceeding operating cash generation
- Current ratio of 0.95x indicates liquidity stress; minimal cash position (75.9M) inadequate relative to debt burden and CapEx needs
- Extremely low returns on equity (3.3%) and assets (1.1%) reveal severe capital inefficiency despite margin strength; high leverage (1.21x debt-to-equity) limits refinancing flexibility
Key Metrics to Watch
- Free cash flow trajectory and whether CapEx can be funded from operations without additional debt issuance
- Current ratio and cash position trend to assess liquidity adequacy for near-term obligations
- Debt-to-equity ratio and interest coverage ratio - whether leverage can be reduced or must increase to fund capital programs
Essential Utilities, Inc. (WTRG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $783.6M | $224.4M | $0.79 |
| 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 |
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 grade of C with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTRG's key strengths?
Claude: High operating margin of 36% demonstrates pricing power within regulated utility framework. Positive operating cash flow of 265.4M provides base for debt service and operational needs.
What are the risks of investing in WTRG?
Claude: Negative free cash flow of -230.3M is structurally unsustainable given large annual CapEx requirements exceeding operating cash generation. Current ratio of 0.95x indicates liquidity stress; minimal cash position (75.9M) inadequate relative to debt burden and CapEx needs.
What is WTRG's revenue and growth?
Essential Utilities, Inc. reported revenue of $861.8M.
Does WTRG pay dividends?
Essential Utilities, Inc. pays dividends, with $97.0M 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 $0.79.
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 grade reflects both perspectives for balanced insights.
What is WTRG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Essential Utilities, Inc. has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WTRG stock overvalued or undervalued?
Valuation metrics for WTRG: ROE of 3.3% (sector avg: 10%), net margin of 26.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is WTRG's AI grade for 2026?
Our dual AI analysis gives Essential Utilities, Inc. a combined C grade 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 $265.4M, with capital expenditures of $495.7M. FCF margin is -26.7%.
How does WTRG compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 26.0% (avg: 12%), ROE 3.3% (avg: 10%), current ratio 0.95 (avg: 0.8).