Essential Utilities, Inc. 🇺🇸
WTRG • Technology • USA
⚡ 83.7/100
Wide Moat Score™
$41.1
+0.0% (24H)
Fundamental Snapshot • Market Cap: $11.7B
PEG Ratio
5.97x
EXPANDED
Forward P/E
18.5x
GROWTH FAIR
Revenue Growth YoY
+3.1%
MODERATE
Gross Margin
56.4%
HIGH PRICING POWER
Free Cash Flow
-$657.6M
CASH FORTRESS
Debt / EBITDA
6.3x
LEVERAGED
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | WTRG Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 83.7/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 56.4% Gross Margin | ✅ PASSED |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +3.1% YoY | ⚠️ IN-LINE |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 5.97x PEG Ratio | ⚠️ ELEVATED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 6.3x Net Leverage | ⚠️ WATCH |
| 6. Free Cash Flow Generation | Positive and compounding FCF | -$657.6M Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 18.5x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 0.2% Insider Equity | ℹ️ INSTITUTIONAL |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Institutional Superinvestor Interest | ℹ️ SCREENED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Technology sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 21.1x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 83.7/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: Regulated water and natural gas provider across multiple states.
Valuation Verdict: Trading at a Forward P/E of 18.5x and PEG ratio of 5.97x, Essential Utilities, Inc. satisfies core fundamental screens for quality and durability.