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Essential UtilitiesWTRG -0.41%74 Debt-to-Equity is 1.21 as of Jun. 2026, which is 3% above its 10-year median of 1.17. GuruFocus rates WTRG with a GF Score™ of 74/100 and a GF Value™ of $41.71 (Fairly Valued). The stock has 8 warning signs investors should review. Among 471 Utilities - Regulated companies, Essential Utilities ranks worse than 57.96% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Essential Utilities's Debt-to-Equity or its related term are showing as below:
WTRG'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.78 Med: 1.17 Max: 1.34
Current: 1.21
During the past 13 years, the highest Debt-to-Equity Ratio of Essential Utilities was 1.34. The lowest was 0.78. And the median was 1.17.
WTRG's Debt-to-Equity is ranked worse than 57.96% of 471
companies
in the Utilities - Regulated industry
Industry Median: 1
vs WTRG: 1.21
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Essential Utilities Debt-to-Equity Related Terms
Essential Utilities Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Debt-to-Equity 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.
For the Utilities - Regulated Water subindustry, Essential Utilities's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Debt-to-Equity 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 (WTRG) has a Debt-to-Equity of 1.21 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Essential Utilities and its competitors. This is near median its historical median of 1.17. Over the past decade, Essential Utilities' Debt-to-Equity has ranged from 0.78 to 1.34. According to the industry distribution chart, Essential Utilities ranks #273 out of 471 companies in the Utilities - Regulated industry, placing it in the top 58%.
Is Essential Utilities' Debt-to-Equity too high?
Essential Utilities' current Debt-to-Equity of 1.21 is near median its 10-year median of 1.17. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 1.34. The Utilities - Regulated industry median Debt-to-Equity is 1.00. Essential Utilities' value of 1.21 is 21% above this industry median. Based on the distribution chart, Essential Utilities ranks #273 out of 471 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Essential Utilities has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Debt-to-Equity compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #273 out of 471 companies for Debt-to-Equity. This places Essential Utilities in the lower half of its industry. The industry median Debt-to-Equity is 1.00. Essential Utilities' value of 1.21 is 21% above this benchmark. Historically, Essential Utilities' own Debt-to-Equity has ranged from 0.78 to 1.34 over the past decade. While the company's 10-year median is 1.17 vs. the industry median of 1.00, Essential Utilities has consistently been above 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 Debt-to-Equity for an Utilities - Regulated company?
The median Debt-to-Equity among Utilities - Regulated companies is 1.00, based on 471 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current Debt-to-Equity of 1.21 is 21% above 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Debt-to-Equity is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Debt-to-Equity is 1.21, which is near median its own 10-year median of 1.17. 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 (WTRG) is currently considered Fairly Valued. The stock's GF Value™ is $41.71, compared to a current price of $41.70 — trading 0% below its estimated fair value. The current Debt-to-Equity is 1.21, which is near median its 10-year median of 1.17 and 21% above the Utilities - Regulated industry median of 1.00. Essential Utilities' overall GF Score™ is 74/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Essential Utilities (WTRG), the current Debt-to-Equity is 1.21 as of Jun. 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 (WTRG) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of $41.70 is trading 0% below its estimated GF Value™ of $41.71.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for WTRG:
Debt-to-Equity: 1.21 (near median its 10-year median of 1.17)
GF Value™: $41.71 vs. price of $41.70 (0% below fair value)
Industry Position: 21% above the Utilities - Regulated median (#273 of 471)
No single metric tells the full story. See the WTRG 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.
74GF Score
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