Essential UtilitiesHAM:A2A +3.17%71 Current Ratio is 0.95 as of Mar. 2026, which is 51% above its 10-year median of 0.63. GuruFocus rates HAM:A2A with a GF Score™ of 71/100 and a GF Value™ of €36.88 (Fairly Valued). The stock has 8 warning signs investors should review. Among 507 Utilities - Regulated companies, Essential Utilities ranks worse than 60.16% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Essential Utilities's current ratio for the quarter that ended in Mar. 2026 was 0.95.
Essential Utilities has a current ratio of 0.95. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Essential Utilities has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Essential Utilities's Current Ratio or its related term are showing as below:
HAM:A2A'
s Current Ratio Range Over the Past 10 Years
Min: 0.33 Med: 0.63 Max: 6.23
Current: 0.95
During the past 13 years, Essential Utilities's highest Current Ratio was 6.23. The lowest was 0.33. And the median was 0.63.
HAM:A2A's Current Ratio is ranked worse than 60.16% of 507
companies
in the Utilities - Regulated industry
Industry Median: 1.08
vs HAM:A2A: 0.95
Essential Utilities (HAM:A2A) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Essential Utilities Current Ratio Related Terms
Essential Utilities Current Ratio Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:A2A vs AWR, CWT, HTO: Current Ratio Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Essential Utilities Current Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Current Ratio distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Essential Utilities (HAM:A2A) has a Current Ratio of 0.95 as of Mar. 2026. This is 51% above median its historical median of 0.63. Over the past decade, Essential Utilities' Current Ratio has ranged from 0.33 to 6.23. According to the industry distribution chart, Essential Utilities ranks #305 out of 507 companies in the Utilities - Regulated industry, placing it in the top 60.2%.
Is Essential Utilities' Current Ratio too high?
Essential Utilities' current Current Ratio of 0.95 is 51% above median its 10-year median of 0.63. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 6.23. The Utilities - Regulated industry median Current Ratio is 1.08. Essential Utilities' value of 0.95 is 12% below this industry median. Based on the distribution chart, Essential Utilities ranks #305 out of 507 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Essential Utilities has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Current Ratio compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #305 out of 507 companies for Current Ratio. This places Essential Utilities in the lower half of its industry. The industry median Current Ratio is 1.08. Essential Utilities' value of 0.95 is 12% below this benchmark. Historically, Essential Utilities' own Current Ratio has ranged from 0.33 to 6.23 over the past decade. While the company's 10-year median is 0.63 vs. the industry median of 1.08, Essential Utilities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Utilities - Regulated company?
The median Current Ratio among Utilities - Regulated companies is 1.08, based on 507 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current Current Ratio of 0.95 is 12% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median Current Ratio is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Current Ratio is 0.95, which is 51% above median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Based on GuruFocus' analysis, Essential Utilities (HAM:A2A) is currently considered Fairly Valued. The stock's GF Value™ is €36.88, compared to a current price of €34.46 — trading 6.6% below its estimated fair value. The current Current Ratio is 0.95, which is 51% above median its 10-year median of 0.63 and 12% below the Utilities - Regulated industry median of 1.08. Essential Utilities' overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Essential Utilities (HAM:A2A), the current Current Ratio is 0.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Essential Utilities (HAM:A2A) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of €34.46 is trading 6.6% below its estimated GF Value™ of €36.88.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for HAM:A2A:
Current Ratio: 0.95 (51% above median its 10-year median of 0.63)
GF Value™: €36.88 vs. price of €34.46 (6.6% below fair value)
Industry Position: 12% below the Utilities - Regulated median (#305 of 507)
No single metric tells the full story. See the HAM:A2A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
71GF Score
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