Essential Utilities(US:WTRG) ZACKSยท2025-08-21 14:36Core Viewpoint - Essential Utilities (WTRG) is positioned as a strong investment option in the utility sector due to its growth opportunities from acquired assets, organic growth initiatives, and capital expenditures [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 0.5% to $2.11 over the past 30 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $2.35 billion, reflecting a year-over-year increase of 12.7% [2] - The long-term earnings growth rate for Essential Utilities is estimated at 5.18% over the next three to five years [2] - The company has achieved a trailing four-quarter average earnings surprise of 17.5% [2][8] Debt Position - Essential Utilities has a total debt to capital ratio of 53.63%, which is better than the sector average of 59.89% [3] - The time-to-interest earned ratio was 2.9 at the end of Q2 2025, indicating the company's capability to meet future interest obligations [3] Return on Equity - The current return on equity (ROE) for Essential Utilities is 10.1%, surpassing the sector average of 9.78%, demonstrating effective utilization of funds [4] Dividend History - Essential Utilities has a strong dividend history, having paid dividends for 80 years and increased them 35 times in the past 34 years [5] - The current quarterly dividend is 34.26 cents per share, leading to an annualized dividend of $1.37 and a dividend yield of 3.5%, which is significantly higher than the Zacks S&P 500 composite average of 1.16% [5] Customer Base Expansion - The company has been actively expanding its utility operations through municipal asset acquisitions, adding over 135,000 customers since 2015 [6] - Pending acquisitions are expected to add more than 200,000 customers, which will enhance demand and positively impact revenue [6] Share Price Performance - In the past month, WTRG's stock has returned 3.2%, outperforming the industry's growth of 2.2% [9]