With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.
Constructive regulation allows Essential to raise rates through surcharges or rate cases to reduce regulatory lag and enhance cash flow available to pay the dividend and invest in growth projects.
Essential Utilities paid a peak market price for Peoples, which will probably drag on consolidated returns for many years.
|
Metric
|
WTRG
|
NI
|
AWK
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.02 | 16.68 | 34.08 |
Price/Book Value | 1.66 | 1.78 | 2.62 |
Price/Sales | 4.19 | 2.02 | 6.11 |
Price/Cash Flow | 12.85 | 6.71 | 14.34 |
|
Metric
|
WTRG
|
NI
|
AWK
|
|---|---|---|---|
Quick Ratio | 0.24 | 0.15 | 0.79 |
Current Ratio | 0.46 | 0.41 | 1.03 |
Interest Coverage | 2.54 | 2.93 | 3.38 |
|
Metric
|
WTRG
|
NI
|
AWK
|
|---|---|---|---|
Return on Assets (Normalized) | 2.97% | 2.71% | 3.17% |
Return on Equity (Normalized) | 8.49% | 12.15% | 10.15% |
Return on Invested Capital (Normalized) | 5.59% | 5.56% | 5.81% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
AWK
| American Water Works Co Inc | Klcyfz | $25.9 Bil | |
STRNY
| Severn Trent PLC ADR | Vmpfr | $9.9 Bil | |
SVTRF
| Severn Trent PLC | Qcgsntl | $9.9 Bil | |
SBS
| Companhia De Saneamento Basico Do Estado De Sao Paulo ADR | Bvtkn | $9.6 Bil | |
UUGWF
| United Utilities Group PLC Class A | Bsjg | $9.5 Bil | |
UUGRY
| United Utilities Group PLC ADR | Xqbs | $9.5 Bil | |
GGDVY
| Guangdong Investment Ltd ADR | Jxql | $4.5 Bil | |
GGDVF
| Guangdong Investment Ltd | Nzc | $4.5 Bil | |
AWR
| American States Water Co | Kmrkqf | $3.0 Bil |
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