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 |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | 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 82.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.71. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Essential Utilities has Price/Earnings To Growth (PEG) ratio of 2.71. The entity last dividend was issued on the 12th of November 2024. The firm 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 generated a negative expected return over the last 90 days | |
| Essential Utilities currently holds 7.09 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. | |
| Essential Utilities has a strong financial position based on the latest SEC filings | |
| Over 82.0% of Essential Utilities outstanding shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Decoding Essential Utilities Inc A Strategic SWOT Insight |
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 |
Earnings surprises can significantly impact Essential Utilities' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Essential Utilities' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-07-31 | 2001-06-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2001-02-07 | 2000-12-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2000-05-02 | 2000-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1998-10-28 | 1998-09-30 | 0.09 | 0.1 | 0.01 | 11 | ||
1998-07-29 | 1998-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
1997-11-03 | 1997-09-30 | 0.08 | 0.09 | 0.01 | 12 | ||
1997-02-03 | 1996-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
1996-11-05 | 1996-09-30 | 0.07 | 0.08 | 0.01 | 14 |
Know Essential Utilities' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Essential Utilities is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Essential Utilities backward and forwards among themselves. Essential Utilities' institutional investor refers to the entity that pools money to purchase Essential Utilities' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Legal & General Group Plc | 2024-06-30 | 3.7 M | Fmr Inc | 2024-06-30 | 3.3 M | First Trust Advisors L.p. | 2024-06-30 | 3.2 M | Northern Trust Corp | 2024-06-30 | 3.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.8 M | Duff & Phelps Inv Mgmt Co (il) | 2024-06-30 | 2.4 M | Norges Bank | 2024-06-30 | 2.1 M | Tandem Investment Advisors Inc | 2024-06-30 | 2 M | Ubs Asset Mgmt Americas Inc | 2024-06-30 | 2 M | Blackrock Inc | 2024-06-30 | 30.8 M | Vanguard Group Inc | 2024-06-30 | 27.8 M |
Essential Utilities' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 10.6 B.Market Cap |
|
Essential Utilities' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.04 | |
| Return On Capital Employed | 0.04 | 0.08 | |
| Return On Assets | 0.03 | 0.04 | |
| Return On Equity | 0.08 | 0.12 |
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.
Evaluate Essential Utilities' management efficiency
Essential Utilities has return on total asset (ROA) of 0.026 % which means that it generated a profit of $0.026 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0902 %, meaning that it created $0.0902 on every $100 dollars invested by stockholders. Essential Utilities' management efficiency ratios could be used to measure how well Essential Utilities manages its routine affairs as well as how well it operates its assets and liabilities. The Essential Utilities' current Return On Tangible Assets is estimated to increase to 0.04. The Essential Utilities' current Return On Capital Employed is estimated to increase to 0.08. At this time, Essential Utilities' Non Currrent Assets Other are most likely to increase significantly in the upcoming years. The Essential Utilities' current Other Current Assets is estimated to increase to about 135.4 M, while Net Tangible Assets are projected to decrease to roughly 3.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 22.07 | 23.17 | |
| Tangible Book Value Per Share | 13.29 | 13.96 | |
| Enterprise Value Over EBITDA | 16.11 | 11.48 | |
| Price Book Value Ratio | 1.69 | 3.05 | |
| Enterprise Value Multiple | 16.11 | 11.48 | |
| Price Fair Value | 1.69 | 3.05 | |
| Enterprise Value | 17.4 B | 18.2 B |
The strategic initiatives led by Essential Utilities' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0337 | Forward Dividend Yield 0.0337 | Forward Dividend Rate 1.3 | Beta 0.836 |
Basic technical analysis of Essential Stock
As of the 17th of November 2024, Essential Utilities shows the Mean Deviation of 0.8772, standard deviation of 1.14, and Variance of 1.31. 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 market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Essential Utilities is priced favorably, providing market reflects its regular price of 38.6 per share. Given that Essential Utilities has information ratio of (0.11), 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.
Huwar Michael over six months ago Disposition of 1779 shares by Huwar Michael of Essential Utilities at 35.48 subject to Rule 16b-3 | ||
Lee Stewart over a year ago Acquisition by Lee Stewart of 2173 shares of Essential Utilities subject to Rule 16b-3 | ||
Sordoni Andrew J Iii over a year ago Acquisition by Sordoni Andrew J Iii of 2000 shares of Essential Utilities subject to Rule 16b-3 | ||
Christopher Womack over a year ago Acquisition by Christopher Womack of 600 shares of Essential Utilities subject to Rule 16b-3 | ||
Lee Stewart over a year ago Acquisition by Lee Stewart of 702 shares of Essential Utilities subject to Rule 16b-3 | ||
Stahl Roy over a year ago Acquisition by Stahl Roy of 10500 shares of Essential Utilities subject to Rule 16b-3 |
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.
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| WTRG 24 01 MAY 31 Corp BondUS29670GAF90 | View | |
| WTRG 53 01 MAY 52 Corp BondUS29670GAG73 | View | |
| US29670GAD43 Corp BondUS29670GAD43 | 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 0.8772 | |||
| Coefficient Of Variation | (5,293) | |||
| Standard Deviation | 1.14 | |||
| Variance | 1.31 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 6.96 | |||
| Value At Risk | (1.70) | |||
| Potential Upside | 1.88 | |||
| Skewness | 0.3925 | |||
| Kurtosis | 1.44 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 0.8772 | |||
| Coefficient Of Variation | (5,293) | |||
| Standard Deviation | 1.14 | |||
| Variance | 1.31 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 6.96 | |||
| Value At Risk | (1.70) | |||
| Potential Upside | 1.88 | |||
| Skewness | 0.3925 | |||
| Kurtosis | 1.44 |
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 Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 8th of November 2024 An amendment to the original Schedule 13D filing | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 6th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Essential Stock media impact
Far too much social signal, news, headlines, and media speculation about Essential Utilities that are available to investors today. That information is available publicly through Essential media outlets and privately through word of mouth or via Essential internal channels. However, regardless of the origin, that massive amount of Essential data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
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 Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Essential Utilities can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Essential Utilities Historical Investor Sentiment
Investor biases related to Essential Utilities' public news can be used to forecast risks associated with an investment in Essential. The trend in average sentiment can be used to explain how an investor holding Essential can time the market purely based on public headlines and social activities around Essential Utilities. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Essential Utilities' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Essential Utilities and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Essential Utilities news discussions. The higher the estimate score, the more favorable the investor's outlook on Essential Utilities.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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.
Quarterly Earnings Growth (0.17) | Dividend Share 1.247 | Earnings Share 1.99 | Revenue Per Share 7.169 | Quarterly Revenue Growth 0.058 |
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.