Essential Utilities (MEX:WTRG) Beneish M-Score: -2.38 (As of Jun. 27, 2026)


What is Essential Utilities Beneish M-Score?

Essential Utilities MEX:WTRG 73 Beneish M-Score is -2.38 as of Jun. 27, 2026. GuruFocus rates MEX:WTRG with a GF Score™ of 73/100. The stock has 7 warning signs investors should review. Among 486 Utilities - Regulated companies, Essential Utilities ranks worse than 71.81% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Essential Utilities's Beneish M-Score or its related term are showing as below:

MEX:WTRG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Med: -2.52   Max: -0.84
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Essential Utilities was -0.84. The lowest was -3.01. And the median was -2.52.

Essential Utilities Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Essential Utilities's Beneish M-Score 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.

Essential Utilities Beneish M-Score Chart

Essential Utilities Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.55 -2.15 -3.01 -2.38 -2.38

Essential Utilities Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -2.38 0.00

MEX:WTRG vs AWR, CWT, HTO: Beneish M-Score Comparison

For the Utilities - Regulated Water subindustry, Essential Utilities's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Essential Utilities's Beneish M-Score falls into.


Essential Utilities Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Essential Utilities for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0489+0.528 * 1.0127+0.404 * 0.9683+0.892 * 1.0241+0.115 * 0.9612
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.021594-0.327 * 0.9843
=-2.52

* 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.

This Year (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was MXN6,919.16 Mil.
Revenue was MXN44,557.18 Mil.
Gross Profit was MXN25,769.65 Mil.
Total Current Assets was MXN10,990.61 Mil.
Total Assets was MXN350,478.16 Mil.
Property, Plant and Equipment(Net PPE) was MXN257,294.34 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN7,516.86 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0.00 Mil.
Total Current Liabilities was MXN13,765.05 Mil.
Long-Term Debt & Capital Lease Obligation was MXN146,418.30 Mil.
Net Income was MXN11,098.16 Mil.
Gross Profit was MXN472.49 Mil.
Cash Flow from Operations was MXN18,194.02 Mil.
 Total Receivables was MXN6,440.91 Mil.
Revenue was MXN43,507.35 Mil.
Gross Profit was MXN25,482.62 Mil.
Total Current Assets was MXN10,134.01 Mil.
Total Assets was MXN375,956.40 Mil.
Property, Plant and Equipment(Net PPE) was MXN274,768.40 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN7,707.27 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0.00 Mil.
Total Current Liabilities was MXN20,327.38 Mil.
Long-Term Debt & Capital Lease Obligation was MXN154,245.17 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(6919.158 / 44557.175) / (6440.908 / 43507.347)
=0.155287 / 0.148042
=1.0489

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(25482.62 / 43507.347) / (25769.65 / 44557.175)
=0.585708 / 0.57835
=1.0127

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (10990.607 + 257294.341) / 350478.16) / (1 - (10134.014 + 274768.404) / 375956.402)
=0.234517 / 0.242193
=0.9683

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=44557.175 / 43507.347
=1.0241

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(7707.266 / (7707.266 + 274768.404)) / (7516.858 / (7516.858 + 257294.341))
=0.027285 / 0.028386
=0.9612

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 44557.175) / (0 / 43507.347)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((146418.301 + 13765.052) / 350478.16) / ((154245.17 + 20327.383) / 375956.402)
=0.457042 / 0.464343
=0.9843

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(11098.155 - 472.488 - 18194.022) / 350478.16
=-0.021594

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Essential Utilities has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.38 mean?
Essential Utilities (MEX:WTRG) has a Beneish M-Score of -2.38 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Essential Utilities and its competitors. According to the industry distribution chart, Essential Utilities ranks #349 out of 486 companies in the Utilities - Regulated industry, placing it in the top 71.8%.
Is Essential Utilities' Beneish M-Score too high?
Essential Utilities' current Beneish M-Score is -2.38. Based on the distribution chart, Essential Utilities ranks #349 out of 486 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Essential Utilities has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Beneish M-Score compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #349 out of 486 companies for Beneish M-Score. This places Essential Utilities in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Utilities - Regulated company?
A good Beneish M-Score depends on the Utilities - Regulated industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Essential Utilities and its competitors. Essential Utilities's current Beneish M-Score is -2.38. 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?
Essential Utilities (MEX:WTRG) has a current Beneish M-Score of -2.38. The current Beneish M-Score is -2.38. Essential Utilities' overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Essential Utilities (MEX:WTRG), the current Beneish M-Score is -2.38 as of Jun. 27, 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.

Essential Utilities Business Description

Other Exchanges WTRG:USAA2A:Germany
Address 762 West Lancaster Avenue, Bryn Mawr, PA, USA, 19010-3489
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.