FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Essential Utilities FCF Yield % Related Terms
Essential Utilities FCF Yield % Historical Data
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The historical data trend for Essential Utilities's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Essential Utilities's FCF Yield % 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 FCF Yield % of -3.91 as of Jul. 03, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Essential Utilities and its competitors. According to the industry distribution chart, Essential Utilities ranks #352 out of 506 companies in the Utilities - Regulated industry, placing it in the top 69.6%.
Is Essential Utilities' FCF Yield % too high?
Essential Utilities' current FCF Yield % is -3.91. Based on the distribution chart, Essential Utilities ranks #352 out of 506 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' FCF Yield % compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #352 out of 506 companies for FCF Yield %. This places Essential Utilities in the lower half of its industry. The industry median FCF Yield % is 1.64. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Utilities - Regulated company?
The median FCF Yield % among Utilities - Regulated companies is 1.64, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median FCF Yield % is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current FCF Yield % is -3.91. 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 €35.73, compared to a current price of €33.40 — trading 6.5% below its estimated fair value. The current FCF Yield % is -3.91. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Essential Utilities (HAM:A2A), the current FCF Yield % is -3.91 as of Jul. 03, 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 €33.40 is trading 6.5% below its estimated GF Value™ of €35.73.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for HAM:A2A:
FCF Yield %: -3.91
GF Value™: €35.73 vs. price of €33.40 (6.5% below fair value)
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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