Upside case
Bull case
$68+82.0%
WTRG would need investors to value it at roughly 30x earnings — about 14x more generous than today's 17x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Essential Utilities, Inc. (WTRG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
18
analysts
9 bullish · 1 bearish · 18 covering WTRG
Strong Buy
0
Buy
9
Hold
8
Sell
1
Strong Sell
0
Consensus Target
$40
+6.7% vs today
Scenario Range
$27 – $68
Model bear to bull value window
Coverage
18
Published analyst ratings
Valuation Context
16.7x
Forward P/E · Market cap $10.6B
WTRG price targets
Three scenarios for where WTRG stock could go
Current
~$37
Confidence
55 / 100
Updated
May 1, 2026
Where we are now
Current · $37
Bear
$27
Base
$42
Bull
$68
Market caseClosest to today
Base case
$42+12.7%
At 19x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$27-28.8%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push WTRG down roughly 29% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Essential Utilities, Inc.
WTRG · NYSEUtilitiesRegulated WaterDecember year-end
Essential Utilities is a regulated water and natural gas utility serving residential and commercial customers across multiple U.S. states. It generates revenue primarily through regulated utility rate structures — with water services contributing about 70% and natural gas about 30% of earnings — supplemented by non-regulated services like water line protection plans. The company's moat stems from its regulated monopoly status in its service territories, providing stable, predictable cash flows with limited competition.
Market Cap
$10.6B
Revenue TTM
$2.5B
Net Income TTM
$616M
Net Margin
24.9%
WTRG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
42%Exceptional
vs consensus estimates
Avg EPS Surprise
+9.2%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.03/$0.80
Revenue
$784M/$702M
Q3 2025
EPS
$0.38/$0.29
Revenue
$515M/$472M
Q4 2025
EPS
$0.33/$0.28
Revenue
$477M/$472M
Q1 2026
EPS
$0.47/$0.36
Revenue
$699M/$612M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.03/$0.80 | +28.3% | $784M/$702M | +11.6% |
| Q3 2025 | $0.38/$0.29 | +31.0% | $515M/$472M | +9.0% |
| Q4 2025 | $0.33/$0.28 | +16.5% | $477M/$472M | +1.0% |
| Q1 2026 | $0.47/$0.36 | +30.6% | $699M/$612M | +14.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.6B
+6.5% YoY
FY2
$2.8B
+8.1% YoY
EPS Outlook
FY1
$2.32
+6.7% YoY
FY2
$2.48
+7.0% YoY
Trailing FCF (TTM)-$456M
FCF Margin: -18.4%
Next Earnings
May 7, 2026
Expected EPS
$0.94
Expected Revenue
$783M
WTRG beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WTRG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.5B
Product Mix
Latest annual revenue by segment or product family
Natural Gas
45.3%
+33.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Water
100.0%
+8.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Natural Gas is the largest disclosed segment at 45.3% of FY 2025 revenue, up 33.4% YoY.
Water is the largest reported region at 100.0%, up 8.6% YoY.
WTRG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $50 — implies +31.9% from today's price.
Upside to Fair Value
31.9%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WTRG
17.0x
vs
S&P 500
25.1x
32% discount
vs Utilities Trailing P/E
WTRG
17.0x
vs
Utilities
20.1x
15% discount
vs WTRG 5Y Avg P/E
Today
17.0x
vs
5Y Average
22.7x
25% discount
Forward PE
16.7x
S&P 500
19.1x
-13%
Utilities
17.5x
-5%
5Y Avg
—
—
Trailing PE
17.0x
S&P 500
25.1x
-32%
Utilities
20.1x
-15%
5Y Avg
22.7x
-25%
PEG Ratio
1.18x
S&P 500
1.72x
-31%
Utilities
1.69x
-30%
5Y Avg
—
—
EV/EBITDA
14.1x
S&P 500
15.2x
-7%
Utilities
11.4x
+24%
5Y Avg
17.6x
-20%
Price/FCF
—
S&P 500
21.1x
—
Utilities
15.1x
—
5Y Avg
—
—
Price/Sales
4.3x
S&P 500
3.1x
+37%
Utilities
2.2x
+100%
5Y Avg
5.4x
-20%
Dividend Yield
3.55%
S&P 500
1.87%
+90%
Utilities
3.06%
+16%
5Y Avg
2.86%
+24%
| Metric | WTRG | S&P 500 | Utilities | 5Y Avg WTRG |
|---|---|---|---|---|
| Forward PE | 16.7x | 19.1x-13% | 17.5x | — |
| Trailing PE | 17.0x | 25.1x-32% | 20.1x-15% | 22.7x-25% |
| PEG Ratio | 1.18x | 1.72x-31% | 1.69x-30% | — |
| EV/EBITDA | 14.1x | 15.2x | 11.4x+24% | 17.6x-20% |
| Price/FCF | — | 21.1x | 15.1x | — |
| Price/Sales | 4.3x | 3.1x+37% | 2.2x+100% | 5.4x-20% |
| Dividend Yield | 3.55% | 1.87% | 3.06% | 2.86% |
WTRG trades above S&P 500 benchmarks on 1 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWTRG Financial Health
Verdict
Exceptional
WTRG earns 37.2% operating margin on regulated earnings, 3.6% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$2.5B
Revenue Growth
TTM vs prior year
+18.6%
Operating Margin
Operating income divided by revenue
37.2%
Net Margin
Net income divided by revenue
24.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.17
Operating Margin
Operating income over revenue — primary regulated earnings signal
37.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.8%
ROA
Return on assets, trailing twelve months
3.3%
Cash & Equivalents
Liquid assets on the balance sheet
$35M
Net Debt
Total debt minus cash
$8.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
9.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.6%
Dividend
3.6%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$2M
Dividend / Share
Annualized trailing dividend per share
$1.33
Payout Ratio
Share of earnings distributed as dividends
60.6%
Shares Outstanding
Declining as buybacks retire shares
283M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageWTRG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Debt Levels
WTRG has a Debt/Equity ratio of 1.20, indicating a heavy reliance on external financing. Despite a reasonable interest coverage ratio of 2.8, the company's cash burn in recent years increases the risk associated with its debt.
High Risk
Liquidity Concerns
The company's Current Ratio and Quick Ratio both stand at 0.80, suggesting significant challenges in meeting short-term obligations. This low liquidity could lead to financial distress if immediate cash needs arise.
High Risk
Bankruptcy Risk
With an Altman-Z score of 0.97, WTRG is at a heightened risk of bankruptcy, indicating potential financial instability. This score reflects concerns over the company's overall financial health.
Medium
Merger Integration Challenges
The proposed merger with American Water Works Company, Inc. involves complex integration of systems and workforces, which could lead to execution delays and operational friction. Such challenges may hinder the anticipated benefits of the merger.
Medium
Regulatory Approval Risks
The merger requires approval from shareholders and various state regulatory bodies, which introduces the risk of delays or unfavorable conditions. Such issues could diminish the expected advantages of the merger.
Medium
Funding and Dilution Risks
Funding the merger through debt or equity could lead to increased interest expenses and potential dilution for existing shareholders. This situation may constrain operational flexibility and slow down dividend growth.
Lower
Pending Rate Cases
The market is currently evaluating pending rate cases that could affect future earnings and revenue. The outcomes of these cases may introduce volatility in the company's financial performance.
Lower
Analyst Sentiment
As of April 27, 2026, the consensus rating among analysts is 'Hold,' with a price target of $43.50. This neutral outlook suggests limited upside potential in the near term.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WTRG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Stable and Regulated Growth
Essential Utilities operates in the regulated water and natural gas sector, providing a predictable revenue stream and stable growth. Analysts expect the company to continue generating 5% to 7% annual adjusted EPS growth.
Consistent Dividend Payments
The company has a long history of dividend payments, consistently raising its dividend for 34 years. It offers a dividend yield of approximately 3.46%, with an annual dividend of $1.37 per share.
Merger with American Water Works
The pending merger with American Water Works Company, Inc. (AWK) is a significant catalyst that could accelerate EPS and dividend growth. The merger is expected to close by the end of the first quarter of 2027, creating a larger entity with increased scale and operating leverage.
Infrastructure Investment Plans
Essential Utilities is planning significant investments in infrastructure, with a planned investment of $1.7 billion in 2026, up from $1.4 billion in 2025. These investments contribute to the regulated asset base, leading to compounding earnings on a predictable basis.
Strong Financial Performance
The company reported a 10% year-over-year revenue growth and a 32.7% increase in net income in Q3 2025. For the full year 2025, net income was $616.4 million, or $2.20 per share, indicating robust financial health.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WTRG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$37.49
52W Range Position
19%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$36.32
+3.2% from the low
52-Week High
$42.37
-11.5% from the high
1 Month
-8.31%
3 Month
-0.53%
YTD
-3.1%
1 Year
-8.3%
3Y CAGR
-4.5%
5Y CAGR
-3.9%
10Y CAGR
+1.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WTRG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
16.7x
vs 19.9x median
-16% below peer median
Revenue Growth
+6.5%
vs +7.0% median
-8% below peer median
Net Margin
24.9%
vs 20.3% median
+23% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WTR WTRG Essential Utilities, Inc. | $10.6B | 16.7x | +6.5% | 24.9% | Buy | +6.7% |
AWR AWR American States Water Company | $2.9B | 20.5x | +8.3% | 20.4% | Hold | +17.5% |
MSE MSEX Middlesex Water Company | $946M | 19.9x | +4.6% | 22.1% | Buy | +5.0% |
YOR YORW The York Water Company | $465M | 18.0x | +8.4% | — | Hold | — |
ART ARTNA Artesian Resources Corporation | $323M | 15.7x | +7.0% | 20.2% | Buy | — |
CWC CWCO Consolidated Water Co. Ltd. | $523M | 31.2x | +5.0% | 13.9% | Buy | — |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WTRG Dividend and Capital Return
WTRG returns 3.6% total yield, led by a 3.55% dividend, raised 34 consecutive years.
Dividend WatchFCF Unknown
Total Shareholder Yield
3.6%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
3.55%
Payout Ratio
60.6%
How WTRG Splits Its Return
Div 3.55%
Dividend 3.55%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.33
Growth Streak
Consecutive years of dividend increases
34Y
3Y Div CAGR
6.4%
5Y Div CAGR
6.6%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$2M
Estimated Shares Retired
60.9K
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
283M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.69 | — | — | — |
| 2025 | $1.34 | +5.6% | 0.0% | 3.5% |
| 2024 | $1.27 | +6.5% | 0.0% | 3.5% |
| 2023 | $1.19 | +7.0% | 0.0% | 3.2% |
| 2022 | $1.11 | +7.0% | 0.0% | 2.3% |
FAQ
7 questionsWTRG Investor Questions
Common questions answered from live analyst data and company financials.
01Is Essential Utilities, Inc. (WTRG) stock a buy or sell in 2026?
Essential Utilities, Inc. (WTRG) is rated Buy by Wall Street analysts as of 2026. Of 18 analysts covering the stock, 9 rate it Buy or Strong Buy, 8 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $40, implying +6.7% from the current price of $37. The bear case scenario is $27 and the bull case is $68.
02What is the WTRG stock price target for 2026?
The Wall Street consensus price target for WTRG is $40 based on 18 analyst estimates. The high-end target is $42 (+12.0% from today), and the low-end target is $38 (+1.4%). The base case model target is $42.
03Is Essential Utilities, Inc. (WTRG) stock overvalued in 2026?
WTRG trades at 16.7x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Essential Utilities, Inc. (WTRG) stock in 2026?
The primary risks for WTRG in 2026 are: (1) Debt Levels — WTRG has a Debt/Equity ratio of 1. (2) Liquidity Concerns — The company's Current Ratio and Quick Ratio both stand at 0. (3) Bankruptcy Risk — With an Altman-Z score of 0. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Essential Utilities, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WTRG will report consensus revenue of $2.6B (+6.5% year-over-year) and EPS of $2.32 (+6.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.8B in revenue.
06When does Essential Utilities, Inc. (WTRG) report its next earnings?
Essential Utilities, Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $0.94 and revenue of $783M. Over recent quarters, WTRG has beaten EPS estimates 67% of the time.
07How much free cash flow does Essential Utilities, Inc. generate?
Essential Utilities, Inc. (WTRG) had a free cash outflow of $456M in free cash flow over the trailing twelve months — a free cash flow margin of 18.4%. WTRG returns capital to shareholders through dividends (3.6% yield) and share repurchases ($2M TTM).