Stock analysis · Bull Rankings model

WTRG analysis

Essential Utilities, Inc.Utilities - Regulated Water. Scored on the same transparent model behind the daily rankings.

Water
WTRG
Essential Utilities, Inc. · Utilities - Regulated Water
FCF-$1.1bF
Rev+13.1%B+
D/E1.23B+
P/S4.4xC
PEG3.87D
57Score
$39.85$11.3B
1Y Target$41.60Analyst consensus · 5 analysts
5Y Target$72.76Compound horizon
10Y Target$130.03Long-dated conviction
FCF-$1.1bTTM
F
FCF is negative (-$1.1b) — cash-burning phase; acceptable only for pre-profit spec names
Rev+13.1%TTM YoY
B+
Revenue +13.1% — above sector median, healthy trajectory
D/E1.23
B+
D/E 1.23 — below the Utilities debt median (≈40th pctile)
P/S4.4x
C
P/S 4.4x — expensive vs Utilities peers (≈90th pctile)
PEG3.87
D
PEG 3.87 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 57
Quality0.58
Growth0.91
Value0.35
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
6% off the 12-month high
Quality signals · context only
ROIC8.7% · Breturn on invested capital — not score-weighted
Why now
Utilities - Regulated Water · market cap $11.3b. 6% off the 52-week high of $42.37. Revenue growing +13%, comfortably above the S&P median. 5 sell-side analysts rate this a Hold with a mean 1-yr target of $41.60 (implying +4% upside).
Moat
Net margin 41% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 15% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Free cash flow is negative (-$1.1b) — capital raises or debt issuance likely required; dilution / leverage risk.
Horizon
1-3 yr $41.60 (5-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $72.76 — requires the platform / technology to reach commercial scale. 10 yr $130.03 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

WTRG vs the Top Picks average

PillarWTRGBook avgDiff
Quality0.580.83-0.24
Growth0.910.91in line
Value0.350.75-0.40

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-2.1 over 34 daily scores
From 59.1 (Jun 22) → 57.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
50
Position size
$1,993
4.0% of portfolio
Stop price
$29.89
25% below $39.85
$ at risk if stopped
$498.13
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Essential Utilities, Inc. (WTRG): score, valuation & FAQ

Essential Utilities, Inc. (WTRG) is a Utilities - Regulated Water company that scores 57 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (B+) and D/E (B+), while PEG (D) and FCF (F) rate weaker.

Is WTRG a good stock to buy?

Bull Rankings scores WTRG 57 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (B+) and D/E (B+). A score is a quantitative screen of Essential Utilities, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does WTRG score 57 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WTRG earns its highest marks on Rev (B+) and D/E (B+), and is held back by PEG (D) and FCF (F). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is WTRG overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for WTRG — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in WTRG?

Free cash flow is negative (-$1.1b) — capital raises or debt issuance likely required; dilution / leverage risk.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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