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Upturn AI SWOT - About
WTRG 
Essential Utilities Inc (WTRG)
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Upturn Advisory Summary
07/03/2025: WTRG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
11 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $45.56
1 Year Target Price $45.56
| 8 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -19.41% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/03/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.40B USD | Price to earnings Ratio 16.64 | 1Y Target Price 45.56 |
Price to earnings Ratio 16.64 | 1Y Target Price 45.56 | ||
Volume (30-day avg) 11 | Beta 0.8 | 52 Weeks Range 32.60 - 41.30 | Updated Date 07/3/2025 |
52 Weeks Range 32.60 - 41.30 | Updated Date 07/3/2025 | ||
Dividends yield (FY) 3.51% | Basic EPS (TTM) 2.23 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 27.17% | Operating Margin (TTM) 42.5% |
Management Effectiveness
Return on Assets (TTM) 3.04% | Return on Equity (TTM) 9.78% |
Valuation
Trailing PE 16.64 | Forward PE 17.73 | Enterprise Value 18165375373 | Price to Sales(TTM) 4.61 |
Enterprise Value 18165375373 | Price to Sales(TTM) 4.61 | ||
Enterprise Value to Revenue 8.05 | Enterprise Value to EBITDA 14.28 | Shares Outstanding 280337984 | Shares Floating 279493785 |
Shares Outstanding 280337984 | Shares Floating 279493785 | ||
Percent Insiders 0.18 | Percent Institutions 79.24 |
Upturn AI SWOT
Essential Utilities Inc
Company Overview
History and Background
Essential Utilities Inc., formerly Aqua America, was founded in 1886 as the Springfield Water Company. It has grown through acquisitions and organic expansion, focusing on regulated water and wastewater utilities. The company rebranded in 2020 to reflect its broader infrastructure services.
Core Business Areas
- Regulated Water: Provides water utility services to residential, commercial, and industrial customers. Includes treatment, distribution, and infrastructure maintenance.
- Regulated Wastewater: Offers wastewater collection, treatment, and disposal services to various customer segments. Involved in infrastructure improvements and compliance with environmental regulations.
- Natural Gas: Natural gas distribution to end-use customers through regulated utilities. This is through the acquisitions of Peoples Natural Gas and other subsidiaries.
Leadership and Structure
Christopher Franklin is the Chairman and CEO. The company operates with a decentralized structure, with regional presidents overseeing water and wastewater operations.
Top Products and Market Share
Key Offerings
- Number of Users: 3000000
- Water Utility Services: Provides potable water to approximately 3 million people. Competitors include American Water Works (AWK), and other smaller municipal water systems. Data on market share is difficult to determine precisely due to the fragmented nature of the water utility market.
- Number of Users: 3000000
- Wastewater Utility Services: Collects and treats wastewater for a large number of customers. Competitors include American Water Works (AWK), and smaller municipal operators. Market share data is fragmented and location specific.
- Natural Gas Distribution Services: Distributes natural gas to customers in Pennsylvania, Kentucky and West Virginia. Competitors include UGI Corporation (UGI), National Fuel Gas Company (NFG).
- Number of Users: 740000
Market Dynamics
Industry Overview
The utility industry is characterized by regulation, capital intensity, and essential services. Water and wastewater are essential services, creating stable demand. Natural gas is subject to energy prices. The industry is consolidating as larger players acquire smaller systems.
Positioning
Essential Utilities is a leading provider of water and wastewater services and has been growing through strategic acquisitions, enhancing its geographic footprint and customer base. The move into natural gas also diversifies revenues.
Total Addressable Market (TAM)
The TAM for water and wastewater utilities in the US is estimated to be in the hundreds of billions of dollars, considering infrastructure investments and operational costs. Essential Utilities captures a small, but growing, percentage of this market through acquisitions and organic growth.
Upturn SWOT Analysis
Strengths
- Geographic diversity
- Proven track record of acquisitions
- Essential services with stable demand
- Strong regulatory relationships
- Experienced management team
Weaknesses
- High capital expenditure requirements
- Exposure to regulatory changes
- Dependence on acquisitions for growth
- Debt levels from acquisitions
Opportunities
- Further consolidation of fragmented water and wastewater industry
- Investment in aging infrastructure
- Expansion into new geographic areas
- Pursuit of public-private partnerships
Threats
- Increased regulatory scrutiny
- Fluctuations in interest rates
- Environmental concerns (water scarcity, contamination)
- Economic downturns affecting customer affordability
Competitors and Market Share
Key Competitors
- AWK
- WTRG
- MSEX
Competitive Landscape
Essential Utilities competes with other large investor-owned utilities, as well as municipal and regional operators. Its competitive advantage lies in its experience with acquisitions and its strong regulatory relationships.
Major Acquisitions
Peoples Natural Gas
- Year: 2020
- Acquisition Price (USD millions): 4275
- Strategic Rationale: Diversified business mix with expansion into natural gas and increased scale of operations.
Growth Trajectory and Initiatives
Historical Growth: Essential Utilities has grown primarily through strategic acquisitions of smaller water and wastewater systems. Organic growth is driven by rate increases and customer additions.
Future Projections: Analysts project continued growth in revenue and earnings, driven by acquisitions and infrastructure investments. Projections depend on market conditions and regulatory approvals.
Recent Initiatives: Recent initiatives include infrastructure improvement programs, acquisitions of water and wastewater systems, and expansion into natural gas services.
Summary
Essential Utilities is a stable utility company with a history of growth through acquisitions and essential service offerings. Its core water and wastewater businesses provide consistent revenue, while expansion into natural gas diversifies its portfolio. The company faces challenges related to regulatory oversight, capital expenditure needs, and managing debt, but it is well-positioned to capitalize on opportunities in the fragmented utility market. Keep an eye on regulatory decisions as it determines profitability and sustainability.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Company Investor Relations Materials
- Analyst Reports
- Industry Publications
- Market Data Providers
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor. Market share data is estimated and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Essential Utilities Inc
Exchange NYSE | Headquaters Bryn Mawr, PA, United States | ||
IPO Launch date 1987-12-30 | Chairman, President & CEO Mr. Christopher H. Franklin | ||
Sector Utilities | Industry Utilities - Regulated Water | Full time employees 3291 | Website https://www.essential.co |
Full time employees 3291 | Website https://www.essential.co | ||
Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. It operates through Regulated Water; and Regulated Natural Gas segments. The company offers water services through operating and maintenance contracts with municipal authorities and other parties. It also provides utility service line protection solutions and repair services to households; and natural gas distribution services. The company serves approximately 5.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
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