Essential Utilities Intrinsic Value Calculation – KBC Group NV Shows Confidence in Essential Utilities, Increases Stake in First Quarter
August 8, 2023
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This move serves as a vote of confidence in the company’s long-term potential and future growth. Essential Utilities ($NYSE:WTRG) is a publicly traded company on the New York Stock Exchange with a focus on providing essential utilities and services to customers across the United States. The company provides water, wastewater, natural gas distribution, and other services in markets across the country. They are committed to providing reliable services to their customers and have been rated highly by J.D. Power for customer satisfaction.
Along with their commitment to customer service, they have also placed an emphasis on environmental conservation and sustainability. Their efforts to become more sustainable have been recognized by numerous organizations. With their continued commitment to customer service and sustainability, Essential Utilities is well positioned to continue delivering value to shareholders in the years to come.
Stock Price
The stock opened at $41.4 and closed at $40.9, down by 2.0% from its previous closing price of $41.7. This news signals an optimistic outlook in the company and its promising future projections. The increase in KBC Group NV’s stake is a positive sign for investors in the company as it shows an unwavering commitment to the success of Essential Utilities. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Essential Utilities. More…
| Total Revenues | Net Income | Net Margin |
| 2.32k | 457.3 | 19.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Essential Utilities. More…
| Operations | Investing | Financing |
| 691.33 | -1.19k | 458.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Essential Utilities. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.82k | 10.3k | 20.86 |
Key Ratios Snapshot
Some of the financial key ratios for Essential Utilities are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.8% | 23.9% | 29.6% |
| FCF Margin | ROE | ROA |
| -18.7% | 7.9% | 2.7% |
Analysis – Essential Utilities Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of ESSENTIAL UTILITIES‘s wellbeing, and have determined that the intrinsic value of ESSENTIAL UTILITIES share is around $53.0. This calculation was determined by our proprietary Valuation Line. Currently, ESSENTIAL UTILITIES stock is traded at $40.9, which is undervalued by 22.9%. This presents investors with a good opportunity to enter into the stock at a bargain price. More…
Peers
Aris Water Solutions Inc, Premium Water Holdings Inc, and Global Water Resources Inc are its major competitors. Essential Utilities Inc has a strong market position and offers a wide range of water and wastewater services. The company has a diversified customer base and a strong financial position.
– Aris Water Solutions Inc ($NYSE:ARIS)
Aris Water Solutions Inc is a publicly traded company with a market cap of 398.68M as of 2022. The company has a Return on Equity of 3.88%. Aris Water Solutions Inc is engaged in the business of water treatment and wastewater management. The company provides water treatment solutions to municipalities, industries and businesses.
– Premium Water Holdings Inc ($TSE:2588)
Water Holdings Inc is a publicly traded company that provides water and wastewater services to residential, commercial, and industrial customers in the United States. It is the largest provider of water and wastewater services in the United States. The company has a market capitalization of $71.6 billion as of 2022 and a return on equity of 28.31%. The company’s primary business is providing water and wastewater services to customers in the United States, but it also has a significant presence in the United Kingdom, Australia, and Canada.
– Global Water Resources Inc ($NASDAQ:GWRS)
Global Water Resources Inc is a water resource management company. It provides water and wastewater services to residential, commercial, and industrial customers in the Phoenix metropolitan area. The company was founded in 1985 and is headquartered in Scottsdale, Arizona.
Summary
Essential Utilities, Inc. has recently seen a large increase in investment from KBC Group NV, a leading institutional investor. This is a clear sign of confidence in the company’s long-term prospects and indicates that it is a sound investment choice. Analysts predict that Essential Utilities is on track for growth, with good cash flow, strong market position, and a well-managed balance sheet. It is a good pick for investors looking for stability and a sound return on their capital.
