| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 21.0x | 17.8x | Bottom tier | |
Growth | 38 | 9.9% | 7.1% | Bottom tier | |
Quality | 39 | 5.8% | 4.5% | Bottom tier | |
Safety | 35 | 6.3x | 2.6x | Bottom tier | |
Capital Return | 31 | 2.56% | 2.12% | Bottom tier | |
Momentum | 71 | 0.1% | 2.9% | Top tier | |
Sentiment | 44 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Essential Utilities, Inc. operates regulated water, wastewater, and natural gas utilities, generating revenue from customer service and the recovery of capital investments and approved costs through rate cases and regulatory surcharges. The significance of the water and wastewater businesses is reflected in the fact that approximately 78% of the $56.6 million in approved annualized increases during fiscal year 2026 came from these two businesses, while the remainder came from the gas business.
In fiscal Q2 2026, the company reported revenue of $530.9 million and net income of $105.7 million, equivalent to a calculated net income margin of approximately 19.9%, and GAAP EPS of $0.37. After excluding approximately $0.01 per share in non-recurring merger costs, adjusted EPS was $0.38, compared with $0.38 in the comparable quarter; the provided data did not include a gross profit or gross margin figure.
Revenue for the twelve months ended in fiscal year 2026 was approximately $2.6 billion, with net income of $557.0 million and EPS of approximately $1.96, compared with revenue of $2.5 billion, net income of $616.4 million, and EPS of $2.20 in fiscal year 2025. The quarterly results reflect a mix of support for the water business from higher volumes and customer growth, offset by the negative impact of lower gas volumes and higher consumption, depreciation, and financing costs.
The analyst consensus is “Buy,” with an average price target of $43 and a target range between $40 and $46. The average target is slightly above the top of the 52-week range of $42.37, while the lowest target is below it and the highest target is above it; this divergence reflects limited upside around the historical top of the range versus the regulatory and financing uncertainty associated with the merger and capital spending program. The provided data does not include a usable P/E ratio, so the stock cannot be evaluated on the basis of this multiple without unsupported assumptions.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The plan is based on adjusted EPS growth of 5% to 7% from $1.97 in fiscal year 2024. In fiscal Q2 2026, regulatory recoveries and surcharges added $0.06 per share, water volumes added $0.02, and customer growth added $0.01. The company also secured $56.6 million in approved annualized increases and is pursuing additional requests in water and gas.
Management said on August 5, 2026, that it still expects to complete the merger during fiscal Q1 2027. Approvals had been issued in Kentucky, Ohio, and Virginia, with a preliminary settlement in Texas. Proceedings remained ongoing in New Jersey, North Carolina, Illinois, and Pennsylvania, so the timing remains dependent on completing the remaining regulatory processes.
Revenue was $530.9 million, net income was $105.7 million, and GAAP EPS was $0.37. This is equivalent to a calculated net income margin of approximately 19.9%, while the provided data did not include a gross profit figure. After excluding approximately $0.01 in merger costs, adjusted EPS was $0.38, equal to the level in the comparable quarter.
Automated analysis for informational purposes only — not investment advice.
The company spent $662 million from the beginning of fiscal year 2026 through the end of Q2. It is targeting record investment of $1.7 billion during fiscal year 2026 in regulated water and natural gas networks. In Pennsylvania, management reported that approximately 55% of water capital spending during fiscal year 2026 is eligible for the DSIC mechanism, making general rate cases important for recovering the remaining eligible investments.
The company completed the acquisition of Integra Water LLC for $4.9 million, adding 1.1 thousand customers to its Texas base. Signed purchase agreements cover approximately 200 thousand customers and are valued at approximately $282 million, including DELCORA, while the pipeline of potential opportunities totals approximately 400 thousand customers. However, DELCORA remains on hold due to a stay order related to the bankruptcy of the city of Chester, so the transaction is not included in earnings growth guidance.
In 2026, the board of directors approved a 5.25% increase in the quarterly cash dividend, payable on September 1, 2026, to shareholders of record on August 11, 2026. The company has a record of consecutive quarterly cash dividends spanning 80 years. Management also said it aims to grow the dividend while maintaining a payout ratio between 60% and 65%.
