# Essential Utilities, Inc. (WTRG) — Stock CV

Essential Utilities, Inc. is a $11.1B utility company. Revenue grew 9.9% over the last year, it keeps 22¢ of every dollar of sales as profit, and it carries $8.08B of net debt. It trades at 19.8× earnings — around the middle of its own history.

> Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states.

## Identity

- **Ticker**: WTRG
- **Sector**: Utilities
- **Industry**: Water Supply
- **Headquarters**: BRYN MAWR, PA
- **Employees**: 3 303
- **Website**: https://www.essential.co
- **Market cap**: $11.1B
- **Last price**: $38.98
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $2.57B
- **Net income**: $555M
- **Free cash flow**: -$452M
- **Net debt**: $8.08B
- **P/E**: 19.8
- **Revenue growth (YoY)**: 9.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 52 |
| Growth | 56 |
| Profitability | 67 |
| Health | 24 |
| Quality | 60 |
| Moat | 38 |

## Qualifications (beginner checklist) — 7 of 11 passed

- [x] Revenue growing — +9.9% YoY
- [x] Profitable — $555M TTM
- [x] Profit growing — +7.5% YoY
- [ ] Generates cash — -$452M TTM
- [ ] Debt under control — current ratio 0.78
- [x] Established company — $11.1B market cap
- [ ] Not printing shares — +10.2% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 0.8 — distress
- [x] Pays a dividend — yield 3.52%
- [x] Valuation not extreme — P/E 19.8

## Experience (career milestones)

- **FY2025** — Best year on record: $616M net income
- **2025** — American Water Works agreed to acquire the company in an all-stock merger, creating a combined…
- **FY2020** — Revenue crossed $1B: $1.46B for the year
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **1998** — Aqua America, then known as the Philadelphia Suburban Water Company (PSW) purchased the West…
- **1989** — The company was incorporated in 1989

## Strengths

- High gross margin (49.3%)
- Strongly profitable — 21.6% net margin

## Watch-outs

- Negative free cash flow (-$451.9M)
- Altman Z-Score 0.83 — elevated financial-distress risk

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.88B | $432M | -$376M |
| FY2022 | $2.29B | $465M | -$462M |
| FY2023 | $2.05B | $498M | -$266M |
| FY2024 | $2.09B | $595M | -$559M |
| FY2025 | $2.47B | $616M | -$420M |

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Source: https://stockcv.com/WTRG — derived from company filings; may be delayed or incomplete. Information, not investment advice.