Essential Utilities Inc.
WTRG Utilities Utilities Regulated Water
Essential Utilities Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.5 billion, up 18.6% from fiscal 2024. In the quarter to June 2026, revenue grew 3.10%, EPS fell 2.63%, free cash flow fell 1.23% and total debt rose 9.41%, each against the same quarter a year earlier. Dividend growth for twenty-five consecutive years.
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Essential Utilities Inc. (WTRG) Altman Z-score
Essential Utilities Inc.'s Altman Z-score for fiscal 2025 is 0.95, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.95 | 0.07 |
| FY2024 | 0.88 | (0.05) |
| FY2023 | 0.92 | (0.19) |
| FY2022 | 1.12 | (0.14) |
| FY2021 | 1.26 | 0.15 |
| FY2020 | 1.11 | (0.61) |
| FY2019 | 1.72 | 0.52 |
| FY2018 | 1.20 | (0.28) |
| FY2017 | 1.48 | 0.22 |
| FY2016 | 1.25 | (0.08) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.01) | — | −0.01 | |
| Retained earnings / total assets | 0.12 | — | 0.16 | |
| EBIT / total assets | 0.05 | — | 0.16 | |
| Market value of equity / total liabilities | 0.85 | — | 0.51 | |
| Sales / total assets | 0.13 | — | 0.13 | |
| Altman Z-score | Distress zone | 0.95 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.22 | ||
Z and Z″ put Essential Utilities Inc. in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CWCO Consolidated Water Co. Ltd. compare | 13.0× |
| AWR American States Water Company compare | 1.8× |
| MSEX Middlesex Water Company compare | 1.1× |
| YORW The York Water Company compare | 1.1× |
| AWK American Water Works Company, Inc. compare | 1.0× |
| WTRG Essential Utilities Inc. | 0.9× |
| CWT California Water Service Group compare | 0.8× |
| HTO H2O America compare | 0.7× |
| SBS Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets