/author-service-images-prod-us-east-1.publishing.aws.arc.pub/morningstar/ea0fcfae-4dcd-4aff-b606-7b0799c93519.jpg)
Essential's Merger With American Water Moving Through Regulatory Process
American Water Works' proposed $63 billion merger with Essential Utilities, including debt, will create the largest investor-owned water utility in the US by a large margin.
Essential Utilities Inc WTRG
Bulls Say, Bears Say
Bulls
Constructive regulation allows Essential to raise rates through surcharges or base rates to reduce regulatory lag and enhance cash flow available for the dividend and growth investments.
Bears
Essential Utilities paid a peak market price for Peoples, which will drag on consolidated returns for several more years.
News
-
American Water and Essential Utilities Proposed Merger Progresses with Approval from the Public Utilities Commission of Ohio
-
Essential Utilities Thinks Globally and Acts Locally by Improving Communities During Month-Long 2026 Earth Day Celebration
-
Essential Utilities Marks Drinking Water Week 2026 With Record Infrastructure Investment, Industry-Leading Compliance
-
Essential Utilities Reports Q1 2026 Results
-
American Water and Essential Utilities Receive Kentucky Public Service Commission Approval for Proposed Merger
-
American Water and Essential Utilities Receive Kentucky Public Service Commission Approval for Proposed Merger
-
Essential Utilities to Report Financial Results for Q1 2026
Trading Information
- Previous Close Price
- $36.95
- Day Range
- $36.91–37.41
- 52-Week Range
- $36.11–42.37
- Bid/Ask
- $36.89 / $36.90
- Shares Outstanding
- 283.63M
- Market Cap
- $10.49B
- Volume/Avg
- 652,519 / 2M
Key Statistics
- Price/Earnings (Normalized)
- 18.67
- Price/Sales
- 4.15
- Dividend Yield (Trailing)
- 3.65%
- Dividend Yield (Forward)
- 3.65%
- Total Yield
- 3.65%
Company Profile
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. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
- Sector
- Utilities
- Industry
- Utilities - Regulated Water
- Stock Style Box
- Small Value
- Total Number of Employees
- 3,303
- Website
- https://www.essential.co
Competitors
Valuation
|
Metric
|
WTRG
|
NI
|
ES
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.67 | 23.84 | 13.74 |
Price/Book Value | 1.54 | 2.34 | 1.56 |
Price/Sales | 4.15 | 3.30 | 1.84 |
Price/Cash Flow | 9.93 | 9.11 | 5.79 |
Price/Earnings
WTRG
NI
ES
Financial Strength
|
Metric
|
WTRG
|
NI
|
ES
|
|---|---|---|---|
Quick Ratio | 0.76 | 0.37 | 0.31 |
Current Ratio | 0.95 | 0.65 | 0.65 |
Interest Coverage | 2.75 | 2.68 | 2.39 |
Quick Ratio
WTRG
NI
ES
Profitability
|
Metric
|
WTRG
|
NI
|
ES
|
|---|---|---|---|
Return on Assets (Normalized) | 2.86% | 2.91% | 3.09% |
Return on Equity (Normalized) | 8.04% | 11.02% | 12.06% |
Return on Invested Capital (Normalized) | 5.79% | 5.93% | 6.53% |
Return on Assets
WTRG
NI
ES
Utilities - Regulated Water Industry Comparables
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| American Water Works Co Inc
AWK
| Swcznmlr | Nzntls | $24B | |||
| Companhia De Saneamento Basico Do Estado De Sao Paulo ADR
SBS
| — | Qbfmnd | $19B | |||
| United Utilities Group PLC Class A
UUGWF
| Sdplfjfrw | Fgwsr | $13B | |||
| United Utilities Group PLC ADR
UUGRY
| Lntqsstz | Tncd | $13B | |||
| Severn Trent PLC
SVTRF
| — | Qzblbb | $12B | |||
| Severn Trent PLC ADR
STRNY
| — | Jtmfpy | $12B | |||
| Guangdong Investment Ltd ADR
GGDVY
| — | Wzpv | $7B | |||
| Beijing Enterprises Water Group Ltd
BJWTF
| — | Wlkyn | $3B | |||
| American States Water Co
AWR
| — | Dtqkjg | $3B |
United States