Essential Utilities Intrinsic Value Calculator – Bank of America reaffirms ‘buy’ rating and $45 price target for Essential Utilities in latest research note

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Bank of America, one of the largest investment banks in the world, recently reaffirmed their “buy” rating for Essential Utilities ($NYSE:WTRG)’ stock in a research note released on Friday. The company reported strong financial results in its latest quarterly earnings report, beating analysts’ expectations and showing a year-over-year increase in earnings per share. Additionally, Essential Utilities has been expanding its presence through strategic acquisitions and investments in its infrastructure. This acquisition is expected to significantly enhance Essential Utilities’ earnings and cash flow, further strengthening its position in the utility market. The company’s stable business model and consistent dividend payouts have made it an attractive investment option for many.

However, like any other company, Essential Utilities also faces some risks. One major concern for investors is the potential impact of regulatory changes on the utility industry. The company’s operations are subject to regulations from various government agencies, and any changes in regulations could affect its financial performance. With a strong track record of earnings growth and strategic investments, Essential Utilities remains a solid choice for investors looking for stability and growth in the utility sector.

Share Price

This comes after the utility company’s stock experienced a slight dip on Friday, with the opening price at $38.41 and closing at $38.0. This represents a decrease of 0.84% from the previous closing price of $38.32. Furthermore, the price target set at $45 suggests that there is still room for the stock to grow and potentially provide a good return for investors. This reaffirmation also serves as a vote of confidence for Essential Utilities‘ recent performance. Despite the slight decrease in stock price on Friday, the company’s overall performance has been strong.

In addition to their solid market presence, Essential Utilities has also shown strong financial results in recent years. This is a testament to the company’s ability to navigate through challenging economic conditions and continue to generate growth. With a strong market position and solid financial performance, Essential Utilities has the potential to continue its growth trajectory and provide a good return for shareholders. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Essential Utilities. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Essential Utilities. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Essential Utilities. More…

Key Ratios Snapshot

Some of the financial key ratios for Essential Utilities are shown below. More…

Analysis – Essential Utilities Intrinsic Value Calculator

As a financial analyst for GoodWhale, I conducted a thorough examination of the financials of ESSENTIAL UTILITIES. This utility company provides essential services to its customers, making it an important player in the market. In my analysis, I looked at various factors such as revenue, expenses, profits, and overall financial health to determine the company’s performance. One of the key findings from my analysis is the intrinsic value of ESSENTIAL UTILITIES’ stock. Using our proprietary Valuation Line, I calculated the intrinsic value of the stock to be around $41.8. This means that based on the company’s financials, its stock should be priced at $41.8 for it to be considered fairly valued. However, as of now, ESSENTIAL UTILITIES’ stock is trading at $38.0. This indicates that the stock is currently undervalued by 9.1%. This presents a potential buying opportunity for investors looking to add ESSENTIAL UTILITIES to their portfolio. Furthermore, my analysis also revealed that ESSENTIAL UTILITIES has a strong financial position. The company has consistently generated high revenue and profits over the years, indicating a stable and reliable business. Additionally, its expenses are well managed, leading to healthy profit margins. In conclusion, my analysis of ESSENTIAL UTILITIES’ financials shows that the company’s stock is currently undervalued and presents a good buying opportunity for investors. With a strong financial position and essential services provided, ESSENTIAL UTILITIES is well-positioned for future growth and can potentially provide good returns for investors in the long run. 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

Bank of America has reaffirmed its “buy” rating for Essential Utilities and set a price target of $45. This indicates a positive outlook on the company’s future performance. Investors may want to consider purchasing shares of Essential Utilities in anticipation of potential growth. This analysis highlights the confidence in Essential Utilities’ financial health and its potential for success in the market.

Overall, this report suggests that Essential Utilities is a promising investment opportunity for those looking to expand their portfolio. Investors should keep an eye on any future developments and performance updates from the company.