Latest Ratios: P/E Ratio 18.3x · EV/EBITDA 14.7x · ROE 9.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.4B | $10.8B | $10.0B | $10.0B | $12.5B | $13.9B | $12.0B | $10.1B | $6.1B | $7.0B | $5.3B |
| Enterprise Value | $19.7B | $19.1B | $17.7B | $17.1B | $19.4B | $19.9B | $17.8B | $11.4B | $8.7B | $9.1B | $7.2B |
| P/E Ratio → | 18.26 | 17.44 | 16.74 | 20.08 | 26.97 | 32.15 | 42.22 | 45.13 | 31.66 | 29.06 | 22.76 |
| P/S Ratio | 4.61 | 4.35 | 4.78 | 4.87 | 5.48 | 7.38 | 8.23 | 11.39 | 7.28 | 8.63 | 6.52 |
| P/B Ratio | 1.64 | 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 | 11.28 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 14.72 | 14.24 | 15.69 | 16.49 | 19.72 | 22.07 | 25.68 | 22.86 | 18.42 | 19.36 | 15.51 |
| EV / EBIT | 21.39 | 20.09 | 20.19 | 23.88 | 28.11 | 31.56 | 39.18 | 33.70 | 31.20 | 26.39 | 21.54 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | 565.47 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 3.3% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 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 | 3.3% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WTRG stock.
Essential Utilities, Inc.'s current P/E ratio is 18.3x. The historical average is 26.3x. This places it at the 10th percentile of its historical range.
Essential Utilities, Inc.'s current EV/EBITDA is 14.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
Essential Utilities, Inc.'s return on equity (ROE) is 9.4%. The historical average is 11.3%.
Based on historical data, Essential Utilities, Inc. is trading at a P/E of 18.3x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Essential Utilities, Inc.'s current dividend yield is 3.32% with a payout ratio of 60.6%.
Essential Utilities, Inc. has 41.0% gross margin and 37.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Essential Utilities, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
Premium Narrowing on Rate Pressures
WTRG trades at 18.1x trailing earnings versus 25.7x for AWR, with a 3.3% dividend yield, according to current market data, suggesting a discount reflecting regulatory and growth concerns.
The P/E discount to water peers like AWR and MSEX may indicate the market is pricing in slower rate base growth or higher regulatory risk. The dividend yield of 3.3% is above the peer average, offering some income support, but the yield spread over Treasuries is modest, limiting valuation upside.
Earned ROE Trails Authorized Levels
Quarterly ROE averaged 2.4% over the last year, well below typical authorized returns of 9-10%, per reported figures, indicating significant regulatory lag or timing effects.
The low quarterly ROE figures are partly due to seasonal revenue patterns and the timing of rate case implementations. However, the persistent gap suggests that earned returns may be structurally below allowed levels, which could pressure future rate case filings and investor expectations.
Margins Stable but Net Pressured
Operating margin held near 36% in 2026Q2, but net margin fell to 19.9% from 26.0% in 2026Q1, per quarterly filings, indicating rising interest and other non-operating costs.
The stability of operating margins suggests cost recovery mechanisms are functioning, but the compression in net margin points to financing costs outpacing revenue growth. This may indicate that regulatory lag is eroding bottom-line returns, warranting close monitoring of future rate case outcomes.
Leverage Creeps Toward Limits
Debt-to-capital remained at 0.55 in 2026Q2, with interest coverage at 2.12, per balance sheet data, suggesting the company is approaching the upper end of typical utility leverage.
The stable debt-to-capital ratio masks a rising debt burden, as total debt increased by $1.5B over the period. Interest coverage has deteriorated from 4.48 in 2024Q1 to 2.12 in 2026Q2, indicating that earnings are increasingly vulnerable to interest rate movements and may constrain future borrowing capacity.
Payout Spikes Signal Coverage Risk
Dividend payout reached 183.7% in 2026Q2, up from 43.2% in 2026Q1, per reported figures, indicating that quarterly earnings are insufficient to cover the dividend in some periods.
The high payout ratio in certain quarters is partly due to seasonal earnings, but the trend suggests that dividend coverage from earnings is thin. However, operating cash flow coverage averaged 2.6x over the last year, indicating the dividend is sustainable from a cash perspective, though internal funding of CAPEX may be constrained.
Misapplied P/E Ignores Rate Base
Comparing WTRG's P/E to industrial companies is misleading because utility earnings are regulated and tied to rate base, not growth, as per regulatory principles.
The P/E ratio for utilities is anchored to the authorized ROE and interest rates, not growth expectations. For WTRG, the low P/E relative to peers may reflect regulatory lag, but investors should focus on the earned ROE versus allowed ROE and the growth in rate base, which drives future earnings. Using P/E alone obscures the regulatory compact that determines value.