Essential Utilities

WTRG

Regulated Water · Utilities

Price

$39.69

+0.22 (+0.56%)

Market Cap

$11.26B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+8.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 258.2M (2021) → 280.6M (2025)

Essential Utilities owns and operates water and wastewater systems that deliver clean drinking water and treat used water for homes, businesses, and municipalities. It serves roughly 5.5 million people across about 10 states, primarily in Pennsylvania, Ohio, and North Carolina, and also runs a natural gas distribution business under the Peoples brand.

The company earns money by charging customers regulated rates set by state utility commissions, which means revenue is stable but growth is limited by what regulators allow. Its main competitive advantage is that water infrastructure is expensive to duplicate, making it a natural monopoly in the areas it serves. The key growth driver is acquiring small, municipally owned water systems that lack the capital to upgrade aging pipes and treatment facilities, though rising interest rates and heavy capital spending requirements put ongoing pressure on returns.

Winston Score History

Politician Trades

5 trades / 12mo

2 Congressional buys and 3 sells on WTRG in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-23.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.3%ownership

Relatively low insider ownership

Cash Runway

~10 months

$76M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Essential Utilities has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

39.1%

Modest — 39.1% gross margin

Operating Margin

36.0%

Excellent — 36.0% operating margin

ROCE

2.0%

Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+13.1%

Fast-growing sales (13.1% YoY)

EPS YoY

-11.7%

Earnings shrinking (-11.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

175%

Turns 175% of profit into real cash

FCF Margin

-19.9%

Burning cash (-19.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.22

Elevated debt (1.22)

Interest Cover

2.67x

Tight — interest eats into profit (2.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

20.1x

Growth-priced — P/E 20.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+5.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (20.1 → 14.8)

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Dividends

Dividend Yield

3.73%

Moderate income — 3.73% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+5.3%

Dividend growing modestly (5.3% YoY)

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