Expert Outlook: Essential Utilities Through The Eyes Of 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 provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $44.25, along with a high estimate of $45.00 and a low estimate of $43.00. This upward trend is evident, with the current average reflecting a 1.72% increase from the previous average price target of $43.50.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Essential Utilities. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Essential Utilities. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey 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.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Essential Utilities's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Essential Utilities analyst ratings.

About Essential Utilities

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. Nearly three fourths of its water earnings come from Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. Essential exited its noncore competitive water and energy services businesses.

Breaking Down 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.

Revenue Growth: Essential Utilities's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -0.53%. This indicates a decrease in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Essential Utilities's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.35%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Essential Utilities's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.23%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Essential Utilities's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.44%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 1.17, Essential Utilities faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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.