Essential Utilities, Inc. cash flow to debt ratio of 12.12% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Essential Utilities, Inc.'s free cash flow has increased -25.01% from $-559.40M last year to $-419.52M, signaling increasing performance

Essential Utilities, Inc.'s debt to equity ratio is 1.21, which means that the company's assets are unhealthy financed, signaling financial risk.

Essential Utilities, Inc.'s debt has decreased relative to shareholder equity from 1.25 last year to 1.21 today, signaling strengthened financials

Essential Utilities, Inc. has a net debt to EBITDA ratio of 6.08x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Essential Utilities, Inc.'s interest coverage ratio of 2.62 indicates that earnings with margin can cover interest payments on company debt

Essential Utilities, Inc.'s profit margin has decreased (24.30%) in the last year from 28.54% to 21.60%, signaling decreasing performance

Essential Utilities, Inc.'s short-term liabilities of $764.48M exceed its short-term assets of $610.40M, signaling financial risk

Essential Utilities, Inc.'s return on assets of 2.78% is lower than the 5.00% threshold, indicating inefficient asset utilization

Essential Utilities, Inc.'s return on equity of 8.05%, is lower than 15.00%, indicating bad performance

Essential Utilities, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Essential Utilities, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Essential Utilities, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Essential Utilities, Inc. has negative free cash flow, indicating cash burn

Essential Utilities, Inc.'s yearly earnings has increased 3.54% since last year from $595.31M to $616.37M, signaling increasing performance

Essential Utilities, Inc.'s yearly revenue has increased 18.62% since last year from $2.09B to $2.47B, signaling increasing performance

ROIC 4.40% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Essential Utilities, Inc.'s 3-year revenue CAGR of 2.65% is positive, indicating growing revenue over the past 3 years

Essential Utilities, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Essential Utilities, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Essential Utilities, Inc. has insufficient data to evaluate this check.

Essential Utilities, Inc. has an earnings yield of 4.92%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Essential Utilities, Inc. is overvalued relative to its fair value price of 4.46 based on EBITDA multiple model

Essential Utilities, Inc. has an EV/EBITDA ratio of 14.33x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Essential Utilities, Inc. is undervalued relative to its fair value price of 74.38 based on Earnings Fair Value model

Essential Utilities, Inc. has a PEG-ratio over 1 which is considered overvalued

Essential Utilities, Inc. has a price-to-book ratio of 1.61x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Essential Utilities, Inc. has a price-to-sales ratio of 4.39x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue