Essential Utilities Stock Beta
| WTRG Stock | USD 40.03 0.25 0.62% |
Essential Utilities fundamentals help investors to digest information that contributes to Essential Utilities' financial success or failures. It also enables traders to predict the movement of Essential Stock. The fundamental analysis module provides a way to measure Essential Utilities' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Essential Utilities stock.
Essential | Beta |
Essential Utilities Company Beta Analysis
Essential Utilities' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Essential Utilities Beta | 0.84 |
Most of Essential Utilities' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Essential Utilities is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Essential Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Essential Utilities is extremely important. It helps to project a fair market value of Essential Stock properly, considering its historical fundamentals such as Beta. Since Essential Utilities' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Essential Utilities' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Essential Utilities' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Essential Utilities has a Beta of 0.836. This is 85.78% higher than that of the Water Utilities sector and significantly higher than that of the Utilities industry. The beta for all United States stocks is notably lower than that of the firm.
Essential Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Essential Utilities' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Essential Utilities could also be used in its relative valuation, which is a method of valuing Essential Utilities by comparing valuation metrics of similar companies.Essential Utilities is currently under evaluation in beta category among its peers.
Essential Utilities ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Essential Utilities' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Essential Utilities' managers, analysts, and investors.Environmental | Governance | Social |
Essential Utilities Institutional Holders
Institutional Holdings refers to the ownership stake in Essential Utilities that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Essential Utilities' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Essential Utilities' value.| Shares | First Trust Advisors L.p. | 2024-06-30 | 3.2 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.8 M | Northern Trust Corp | 2024-09-30 | 2.7 M | Fmr Inc | 2024-09-30 | 2.7 M | Duff & Phelps Inv Mgmt Co (il) | 2024-06-30 | 2.4 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.2 M | Norges Bank | 2024-06-30 | 2.1 M | Tandem Investment Advisors Inc | 2024-09-30 | 2 M | Btim Corp | 2024-09-30 | 2 M | Blackrock Inc | 2024-06-30 | 30.8 M | Vanguard Group Inc | 2024-09-30 | 27.8 M |
As returns on the market increase, Essential Utilities' returns are expected to increase less than the market. However, during the bear market, the loss of holding Essential Utilities is expected to be smaller as well.
Essential Fundamentals
| Return On Equity | 0.0902 | ||||
| Return On Asset | 0.026 | ||||
| Profit Margin | 0.28 % | ||||
| Operating Margin | 0.36 % | ||||
| Current Valuation | 18.48 B | ||||
| Shares Outstanding | 274.61 M | ||||
| Shares Owned By Insiders | 0.19 % | ||||
| Shares Owned By Institutions | 81.62 % | ||||
| Number Of Shares Shorted | 4.17 M | ||||
| Price To Earning | 28.79 X | ||||
| Price To Book | 1.79 X | ||||
| Price To Sales | 5.64 X | ||||
| Revenue | 2.05 B | ||||
| Gross Profit | 1.07 B | ||||
| EBITDA | 1.06 B | ||||
| Net Income | 498.23 M | ||||
| Cash And Equivalents | 12.98 M | ||||
| Cash Per Share | 0.05 X | ||||
| Total Debt | 7.09 B | ||||
| Debt To Equity | 1.17 % | ||||
| Current Ratio | 0.76 X | ||||
| Book Value Per Share | 22.51 X | ||||
| Cash Flow From Operations | 933.59 M | ||||
| Short Ratio | 2.97 X | ||||
| Earnings Per Share | 1.99 X | ||||
| Price To Earnings To Growth | 2.76 X | ||||
| Target Price | 45.8 | ||||
| Number Of Employees | 3.26 K | ||||
| Beta | 0.84 | ||||
| Market Capitalization | 11.06 B | ||||
| Total Asset | 16.84 B | ||||
| Retained Earnings | 1.71 B | ||||
| Working Capital | (305.95 M) | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 2.20 % | ||||
| Net Asset | 16.84 B | ||||
| Last Dividend Paid | 1.25 |
About Essential Utilities Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Essential Utilities's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Essential Utilities using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Essential Utilities based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When determining whether Essential Utilities is a strong investment it is important to analyze Essential Utilities' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Essential Utilities' future performance. For an informed investment choice regarding Essential Stock, refer to the following important reports:Check out Essential Utilities Piotroski F Score and Essential Utilities Altman Z Score analysis. For more detail on how to invest in Essential Stock please use our How to Invest in Essential Utilities guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essential Utilities. If investors know Essential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essential Utilities listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.17) | Dividend Share 1.247 | Earnings Share 1.99 | Revenue Per Share 7.169 | Quarterly Revenue Growth 0.058 |
The market value of Essential Utilities is measured differently than its book value, which is the value of Essential that is recorded on the company's balance sheet. Investors also form their own opinion of Essential Utilities' value that differs from its market value or its book value, called intrinsic value, which is Essential Utilities' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essential Utilities' market value can be influenced by many factors that don't directly affect Essential Utilities' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essential Utilities' value and its price as these two are different measures arrived at by different means. Investors typically determine if Essential Utilities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essential Utilities' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.