Is Essential Utilities Stock a Good Investment?
Essential Utilities Investment Advice | WTRG |
- Examine Essential Utilities' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Essential Utilities' leadership team and their track record. Good management can help Essential Utilities navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Water Utilities space and any emerging trends that could impact Essential Utilities' business and its evolving consumer preferences.
- Compare Essential Utilities' performance and market position to its competitors. Analyze how Essential Utilities is positioned in terms of product offerings, innovation, and market share.
- Check if Essential Utilities pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Essential Utilities' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Essential Utilities stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Essential Utilities is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Essential Utilities Stock
Researching Essential Utilities' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.69. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Essential Utilities last dividend was issued on the 13th of May 2025. The entity had 5:4 split on the 3rd of September 2013.
To determine if Essential Utilities is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Essential Utilities' research are outlined below:
| Essential Utilities has high likelihood to experience some financial distress in the next 2 years | |
| Essential Utilities currently holds 7.73 B in liabilities with Debt to Equity (D/E) ratio of 1.17, which is about average as compared to similar companies. Essential Utilities has a current ratio of 0.74, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Essential Utilities' use of debt, we should always consider it together with its cash and equity. | |
| Over 84.0% of Essential Utilities outstanding shares are owned by institutional investors |
Essential Utilities uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Essential Utilities. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Essential Utilities' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of February 2024 Upcoming Quarterly Report | View | |
| 13th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 26th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Essential Utilities' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 10.98 B.Essential Utilities' profitablity analysis
The company has Profit Margin (PM) of 0.27 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.43 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.43.Determining Essential Utilities' profitability involves analyzing its financial statements and using various financial metrics to determine if Essential Utilities is a good buy. For example, gross profit margin measures Essential Utilities' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Essential Utilities' profitability and make more informed investment decisions.
Basic technical analysis of Essential Stock
As of the 20th of May, Essential Utilities shows the Coefficient Of Variation of 900.59, mean deviation of 1.33, and Downside Deviation of 1.73. In respect to fundamental indicators, the technical analysis model provides you with a way to check existing technical drivers of Essential Utilities, as well as the relationship between them. Please confirm Essential Utilities jensen alpha and downside variance to decide if Essential Utilities is priced favorably, providing market reflects its regular price of 39.31 per share. Given that Essential Utilities has jensen alpha of 0.1759, we urge you to verify Essential Utilities's prevailing market performance to make sure the company can sustain itself at a future point.Essential Utilities' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Essential Utilities insiders, such as employees or executives, is commonly permitted as long as it does not rely on Essential Utilities' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Essential Utilities insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Essential Utilities' Outstanding Corporate Bonds
Essential Utilities issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Essential Utilities uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Essential bonds can be classified according to their maturity, which is the date when Essential Utilities has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| WTRG 24 01 MAY 31 Corp BondUS29670GAF90 | View | |
| WTRG 53 01 MAY 52 Corp BondUS29670GAG73 | View | |
| US29670GAD43 Corp BondUS29670GAD43 | View | |
| US29670GAE26 Corp BondUS29670GAE26 | View | |
| EPRT 295 15 JUL 31 Corp BondUS29670VAA70 | View |
Understand Essential Utilities' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Essential Utilities' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1876 | |||
| Market Risk Adjusted Performance | 30.28 | |||
| Mean Deviation | 1.33 | |||
| Semi Deviation | 1.52 | |||
| Downside Deviation | 1.73 | |||
| Coefficient Of Variation | 900.59 | |||
| Standard Deviation | 1.67 | |||
| Variance | 2.79 | |||
| Information Ratio | 0.1415 | |||
| Jensen Alpha | 0.1759 | |||
| Total Risk Alpha | 0.2358 | |||
| Sortino Ratio | 0.1367 | |||
| Treynor Ratio | 30.27 | |||
| Maximum Drawdown | 7.57 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 2.95 | |||
| Downside Variance | 2.99 | |||
| Semi Variance | 2.32 | |||
| Expected Short fall | (1.43) | |||
| Skewness | (0.23) | |||
| Kurtosis | (0.08) |
| Risk Adjusted Performance | 0.1876 | |||
| Market Risk Adjusted Performance | 30.28 | |||
| Mean Deviation | 1.33 | |||
| Semi Deviation | 1.52 | |||
| Downside Deviation | 1.73 | |||
| Coefficient Of Variation | 900.59 | |||
| Standard Deviation | 1.67 | |||
| Variance | 2.79 | |||
| Information Ratio | 0.1415 | |||
| Jensen Alpha | 0.1759 | |||
| Total Risk Alpha | 0.2358 | |||
| Sortino Ratio | 0.1367 | |||
| Treynor Ratio | 30.27 | |||
| Maximum Drawdown | 7.57 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 2.95 | |||
| Downside Variance | 2.99 | |||
| Semi Variance | 2.32 | |||
| Expected Short fall | (1.43) | |||
| Skewness | (0.23) | |||
| Kurtosis | (0.08) |
Consider Essential Utilities' intraday indicators
Essential Utilities intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Essential Utilities stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Essential Utilities time-series forecasting models is one of many Essential Utilities' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Essential Utilities' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Essential Stock media impact
There is far too much social signal, news, headlines, and media speculation about Essential Utilities that are available to investors today. This information is accessible both publicly - through Essential Utilities' media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Essential-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Essential Utilities news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Essential Utilities relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Essential Utilities' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Essential Utilities alpha.
Essential Utilities Corporate Management
| Elizabeth Amato | Independent Director | Profile | |
| Christina Kelly | Senior Officer | Profile | |
| Whitney Kellett | Senior Officer | Profile | |
| Ellen Ruff | Independent Director | Profile | |
| Matthew Rhodes | Executive Vice President - Strategy and Corporate Development | Profile |
Already Invested in Essential Utilities?
The danger of trading Essential Utilities is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Essential Utilities is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Essential Utilities. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Essential Utilities is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Essential Utilities is a strong investment it is important to analyze Essential Utilities' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Essential Utilities' future performance. For an informed investment choice regarding Essential Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Essential Utilities. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in Essential Stock please use our How to Invest in Essential Utilities guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essential Utilities. If investors know Essential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essential Utilities listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Essential Utilities is measured differently than its book value, which is the value of Essential that is recorded on the company's balance sheet. Investors also form their own opinion of Essential Utilities' value that differs from its market value or its book value, called intrinsic value, which is Essential Utilities' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essential Utilities' market value can be influenced by many factors that don't directly affect Essential Utilities' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Essential Utilities' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Essential Utilities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essential Utilities' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.