Essential Utilities
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
18.5317.6516.4815.63
Price/Sales ratio
4.123.833.483.39
Earnings per Share (EPS)
$2.12$2.23$2.39$2.52

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
20.2426.1022.7329.0631.6845.0641.4632.0226.9020.0218.2945.06
Price/Sales ratio
6.056.476.498.607.2511.378.077.365.474.855.1011.37
Price/Book Value ratio
2.853.052.873.553.022.602.522.662.321.691.612.60
Price/Cash Flow ratio
12.9814.2013.4518.2716.5029.8823.2421.4420.8510.6813.2929.88
Price/Free Cash Flow ratio
134.22862.94416.29-72.00-47.81-47.78-36.05-36.78-27.06-37.58-19.80-47.81
Price/Earnings Growth ratio
4.25-1.911.4412.78-1.58-12.164.310.675.023.930.18-1.58
Dividend Yield
2.37%2.30%2.45%2.01%2.47%1.86%1.96%1.87%2.30%3.17%3.47%2.47%
Profitability Indicator Ratios
Gross Profit Margin
63.00%62.01%62.81%64.52%63.19%62.55%52.52%52.56%46.86%54.82%45.47%62.55%
Operating Profit Margin
40.30%39.43%39.71%40.63%38.56%38.23%29.71%32.09%28.89%33.69%35.94%38.23%
Pretax Profit Margin
30.65%26.62%31.12%31.70%21.27%23.77%18.11%22.46%19.70%21.02%26.62%21.27%
Net Profit Margin
29.90%24.78%28.56%29.61%22.90%25.23%19.47%22.98%20.33%24.25%27.84%22.90%
Effective Tax Rate
10.54%6.90%8.22%6.59%-7.66%-6.15%-7.50%-2.27%-3.17%-15.38%-4.55%-7.66%
Return on Assets
4.31%3.51%3.80%3.78%2.75%2.39%2.07%2.94%2.95%2.95%3.10%2.75%
Return On Equity
14.08%11.69%12.65%12.24%9.55%5.78%6.08%8.32%8.65%8.45%8.97%8.97%
Return on Capital Employed
6.06%5.78%5.55%5.43%4.92%3.76%3.31%4.31%4.49%4.31%4.17%3.76%
Liquidity Ratios
Current Ratio
0.670.660.420.460.366.310.62N/AN/AN/A0.540.36
Quick Ratio
0.620.600.380.410.326.250.530.480.440.470.390.32
Cash ratio
0.010.010.010.010.005.860.000.010.010.000.010.00
Days of Sales Outstanding
45.3944.4443.3544.4544.0844.1568.2050.7060.1143.6737.9444.15
Days of Inventory outstanding
16.1714.6415.5118.2518.7420.1330.6944.8859.9744.3235.9118.74
Operating Cycle
61.5759.0958.8762.7062.8364.2998.9095.59120.0887.9973.8562.83
Days of Payables Outstanding
79.7366.6156.5775.1991.5082.0993.3079.0471.7187.0178.9982.09
Cash Conversion Cycle
-18.16-7.522.30-12.48-28.66-17.805.6016.5448.370.97-5.13-28.66
Debt Ratios
Debt Ratio
0.300.300.300.330.370.320.410.410.430.410.420.37
Debt Equity Ratio
0.981.021.021.081.300.781.211.161.261.191.191.19
Long-term Debt to Capitalization
0.480.490.480.500.540.430.540.520.540.530.530.53
Total Debt to Capitalization
0.490.500.500.520.560.430.540.530.550.540.540.54
Interest Coverage Ratio
4.114.204.133.773.262.562.30N/AN/AN/A2.382.56
Cash Flow to Debt Ratio
0.220.200.200.170.140.110.080.100.080.130.100.11
Company Equity Multiplier
3.263.323.323.233.462.412.922.822.922.852.842.84
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.460.450.480.470.430.380.340.340.260.450.380.38
Free Cash Flow / Operating Cash Flow Ratio
0.090.010.03-0.25-0.34-0.62-0.64-0.58-0.77-0.28-0.67-0.62
Cash Flow Coverage Ratio
0.220.200.200.170.140.110.080.100.080.130.100.11
Short Term Coverage Ratio
4.727.082.513.241.613.223.122.311.314.104.361.61
Dividend Payout Ratio
48.06%60.08%55.90%58.67%78.51%83.95%81.64%59.92%62.03%63.58%62.43%83.95%