Essential Utilities, Inc. (WTRG) Financial Ratios
30 years of historical data (1996–2025) · Utilities · Regulated Water
EV/EBITDA
↓
14.15
↓-20% vs avg
5yr avg: 17.64
30Y Low10.9·High25.7
P/FCF
N/A
—
5yr avg: N/A
30Y Low69.9·High174.2
P/B Ratio
↓
1.54
↓-22% vs avg
5yr avg: 1.98
30Y Low1.6·High5.1
ROE
↑
9.4%
↓+3% vs avg
5yr avg: 9.1%
30Y Low7%·High15%
Debt/EBITDA
↓
6.23
↓-7% vs avg
5yr avg: 6.71
30Y Low3.3·High8.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WTRG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Essential Utilities, Inc. trades at 17.1x earnings, 25% below its 5-year average of 22.7x, sitting at the 3rd percentile of its historical range. Compared to the Utilities sector median P/E of 19.8x, the stock trades at a discount of 14%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.6B | $10.8B | $10.0B | $10.0B | $12.5B | $13.9B | $12.0B | $10.1B | $6.1B | $7.0B | $5.3B |
| Enterprise Value | $18.9B | $19.1B | $17.7B | $17.1B | $19.4B | $19.9B | $17.8B | $11.4B | $8.7B | $9.1B | $7.2B |
| P/E Ratio → | 17.06 | 17.44 | 16.74 | 20.08 | 26.97 | 32.15 | 42.22 | 45.13 | 31.66 | 29.06 | 22.76 |
| P/S Ratio | 4.30 | 4.35 | 4.78 | 4.87 | 5.48 | 7.38 | 8.23 | 11.39 | 7.28 | 8.63 | 6.52 |
| P/B Ratio | 1.54 | 1.57 | 1.61 | 1.70 | 2.33 | 2.67 | 2.57 | 2.61 | 3.04 | 3.57 | 2.89 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | 417.64 |
| P/OCF | 10.53 | 10.65 | 12.94 | 10.71 | 20.90 | 21.50 | 23.70 | 29.94 | 16.55 | 18.33 | 13.50 |
P/E links to full P/E history page with 30-year chart
WTRG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Essential Utilities, Inc.'s enterprise value stands at 14.1x EBITDA, 20% below its 5-year average of 17.6x. The Utilities sector median is 11.3x, placing the stock at a 25% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.70 | 8.48 | 8.32 | 8.47 | 10.58 | 12.14 | 12.76 | 10.33 | 11.25 | 8.82 |
| EV / EBITDA | 14.15 | 14.24 | 15.69 | 16.49 | 19.72 | 22.07 | 25.68 | 22.86 | 18.42 | 19.36 | 15.51 |
| EV / EBIT | 20.56 | 20.09 | 20.19 | 23.88 | 28.11 | 31.56 | 39.18 | 33.70 | 31.20 | 26.39 | 21.54 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | 565.47 |
WTRG Profitability
Margins and return-on-capital ratios measuring operating efficiency
Essential Utilities, Inc. earns an operating margin of 37.2%, significantly above the Utilities sector average of 19.9%. Operating margins have expanded from 33.7% to 37.2% over the past 3 years, signaling improving operational efficiency. ROE of 9.4% is modest. ROIC of 4.8% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 41.0% | 41.0% | 58.6% | 54.8% | 46.9% | 52.6% | 52.5% | 62.6% | 63.2% | 65.1% | 63.8% |
| Operating Margin | 37.2% | 37.2% | 36.3% | 33.7% | 28.9% | 32.1% | 29.7% | 38.2% | 38.6% | 41.2% | 40.7% |
| Net Profit Margin | 24.9% | 24.9% | 28.5% | 24.3% | 20.3% | 23.0% | 19.5% | 25.2% | 22.9% | 29.6% | 28.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.4% | 9.4% | 9.8% | 8.8% | 8.8% | 8.7% | 6.7% | 7.6% | 9.7% | 12.6% | 13.1% |
| ROA | 3.3% | 3.3% | 3.4% | 3.1% | 3.1% | 3.0% | 2.5% | 2.8% | 2.9% | 3.8% | 3.9% |
| ROIC | 4.8% | 4.8% | 4.2% | 4.1% | 4.2% | 4.2% | 4.2% | 5.3% | 5.6% | 6.4% | 6.9% |
| ROCE | 5.1% | 5.1% | 4.6% | 4.5% | 4.6% | 4.5% | 3.9% | 4.4% | 5.1% | 5.6% | 5.8% |
WTRG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Essential Utilities, Inc. carries a Debt/EBITDA ratio of 6.2x, which is highly leveraged (31% above the sector average of 4.8x). Net debt stands at $8.3B ($8.3B total debt minus $35M cash). Interest coverage of just 2.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.22 | 1.22 | 1.25 | 1.20 | 1.27 | 1.16 | 1.22 | 0.80 | 1.27 | 1.09 | 1.02 |
| Debt / EBITDA | 6.23 | 6.23 | 6.85 | 6.84 | 6.96 | 6.69 | 8.28 | 6.21 | 5.45 | 4.52 | 4.06 |
| Net Debt / Equity | — | 1.21 | 1.24 | 1.20 | 1.27 | 1.16 | 1.22 | 0.31 | 1.27 | 1.08 | 1.02 |
| Net Debt / EBITDA | 6.20 | 6.20 | 6.85 | 6.84 | 6.95 | 6.68 | 8.27 | 2.45 | 5.44 | 4.51 | 4.06 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | 147.83 |
| Interest Coverage | 2.88 | 2.88 | 2.90 | 2.52 | 2.89 | 3.03 | 2.41 | 2.69 | 2.80 | 3.91 | 4.17 |
WTRG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.80x is below 1.0, meaning current liabilities exceed current assets. The current ratio has improved from 0.62x to 0.80x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.80 | 0.80 | 0.50 | 0.62 | 0.64 | 0.65 | 0.63 | 6.23 | 0.37 | 0.46 | 0.43 |
| Quick Ratio | 0.65 | 0.65 | 0.40 | 0.48 | 0.45 | 0.49 | 0.53 | 6.17 | 0.33 | 0.41 | 0.38 |
| Cash Ratio | 0.05 | 0.05 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 5.78 | 0.01 | 0.01 | 0.01 |
| Asset Turnover | — | 0.12 | 0.12 | 0.12 | 0.15 | 0.13 | 0.11 | 0.10 | 0.12 | 0.13 | 0.13 |
| Inventory Turnover | 12.99 | 12.99 | 9.20 | 8.24 | 6.09 | 8.13 | 11.89 | 18.12 | 19.47 | 19.65 | 22.93 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
WTRG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Essential Utilities, Inc. returns 3.6% to shareholders annually — split between a 3.5% dividend yield and 0.0% buyback yield. A payout ratio of 60.6% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 5.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 3.5% | 3.5% | 3.2% | 2.3% | 1.9% | 1.9% | 1.9% | 2.5% | 2.0% | 2.5% |
| Payout Ratio | 60.6% | 60.6% | 58.2% | 63.6% | 62.0% | 59.9% | 81.6% | 84.0% | 78.5% | 58.7% | 55.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 5.7% | 6.0% | 5.0% | 3.7% | 3.1% | 2.4% | 2.2% | 3.2% | 3.4% | 4.4% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | 0.2% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 3.6% | 3.5% | 3.5% | 3.2% | 2.3% | 1.9% | 2.0% | 1.9% | 2.5% | 2.0% | 2.5% |
| Shares Outstanding | — | $281M | $274M | $268M | $263M | $258M | $255M | $216M | $178M | $178M | $178M |
Peer Comparison
Compare WTRG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WTRGYou | $11B | 17.1 | 14.1 | — | 41.0% | 37.2% | 9.4% | 4.8% | 6.2 |
 AWR | $3B | 22.5 | 12.2 | — | — | 30.9% | 13.3% | 10.2% | 0.5 |
 MSEX | $950M | 21.7 | 15.7 | — | 39.2% | 27.9% | 9.1% | 4.7% | 4.8 |
 YORW | $463M | 20.9 | 16.6 | — | 54.8% | 35.8% | 8.5% | 4.6% | 5.5 |
 ARTNA | $328M | 14.4 | 10.3 | — | 37.2% | 31.5% | 9.3% | 6.3% | 3.7 |
 CWCO | $527M | — | -4.7 | 0.0 | 36.6% | 13901508.9% | 0.0% | 26.6% | 0.0 |
 AWK | $25B | 22.0 | 14.5 | — | 43.3% | 36.6% | 10.5% | 5.5% | 5.7 |
 CWT | $3B | 20.0 | 12.7 | — | 36.7% | 18.2% | 7.7% | 4.4% | 5.0 |
 NI | $23B | 24.3 | 12.7 | — | 74.3% | 27.6% | 8.3% | 5.3% | 5.2 |
 SR | $5B | 19.7 | 12.5 | — | 78.1% | 21.2% | 8.2% | 4.7% | 6.4 |
 NWN | $2B | 24.0 | 11.1 | — | 34.5% | 16.6% | 5.9% | 4.5% | 5.6 |
| Utilities Median | — | 19.8 | 11.3 | 15.1 | 40.9% | 19.9% | 9.4% | 4.8% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full WTRG Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
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Side-by-side business, growth, and profitability comparison vs American States Water Company.
Start ComparisonWTRG — Frequently Asked Questions
Quick answers to the most common questions about buying WTRG stock.
What is Essential Utilities, Inc.'s P/E ratio?
Essential Utilities, Inc.'s current P/E ratio is 17.1x. The historical average is 26.3x. This places it at the 3th percentile of its historical range.
What is Essential Utilities, Inc.'s EV/EBITDA?
Essential Utilities, Inc.'s current EV/EBITDA is 14.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
What is Essential Utilities, Inc.'s ROE?
Essential Utilities, Inc.'s return on equity (ROE) is 9.4%. The historical average is 11.3%.
Is WTRG stock overvalued?
Based on historical data, Essential Utilities, Inc. is trading at a P/E of 17.1x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Essential Utilities, Inc.'s dividend yield?
Essential Utilities, Inc.'s current dividend yield is 3.55% with a payout ratio of 60.6%.
What are Essential Utilities, Inc.'s profit margins?
Essential Utilities, Inc. has 41.0% gross margin and 37.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Essential Utilities, Inc. have?
Essential Utilities, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.