A Glimpse Into The Expert Outlook On Essential Utilities Through 4 Analysts

Analysts' ratings for Essential Utilities WTRG over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Essential Utilities and provided 12-month price targets. The average target is $40.75, accompanied by a high estimate of $42.00 and a low estimate of $39.00. Highlighting a 2.98% decrease, the current average has fallen from the previous average price target of $42.00.

Decoding Analyst Ratings: A Detailed Look

The perception of Essential Utilities by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Essential Utilities. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Essential Utilities compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Essential Utilities's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Essential Utilities's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Essential Utilities analyst ratings.

Delving into Essential Utilities's Background

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. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. Essential also owns nonregulated market-based water and energy services businesses.

Essential Utilities's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Essential Utilities's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.84% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: Essential Utilities's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.95% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Essential Utilities's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.12%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.4%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Essential Utilities's debt-to-equity ratio stands notably higher than the industry average, reaching 1.2. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.