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Essential UtilitiesMEX:WTRG 80 Return-on-Tangible-Asset is 2.38% as of Jun. 2026, which is 34% below its 10-year median of 3.63. GuruFocus rates MEX:WTRG with a GF Score™ of 80/100. The stock has 7 warning signs investors should review. Among 510 Utilities - Regulated companies, Essential Utilities ranks better than 50% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Essential Utilities's annualizedNet Income for the quarter that ended in Jun. 2026 was MXN7,379.18 Mil. Essential Utilities's average total tangible assets for the quarter that ended in Jun. 2026 was MXN310,604.03 Mil. Therefore, Essential Utilities's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 2.38%.
The historical rank and industry rank for Essential Utilities's Return-on-Tangible-Asset or its related term are showing as below:
MEX:WTRG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.76 Med: 3.63 Max: 3.97
Current: 3.34
During the past 13 years, Essential Utilities's highest Return-on-Tangible-Asset was 3.97%. The lowest was 2.76%. And the median was 3.63%.
MEX:WTRG's Return-on-Tangible-Asset is ranked better than 50% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.33
vs MEX:WTRG: 3.34
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Essential Utilities Return-on-Tangible-Asset Related Terms
Essential Utilities Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Return-on-Tangible-Asset 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.
MEX:WTRG vs AWR, CWT, HTO: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.38% mean?
Essential Utilities (MEX:WTRG) has a Return-on-Tangible-Asset of 2.38% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Essential Utilities and its competitors. This is 34% below median its historical median of 3.63. Over the past decade, Essential Utilities' Return-on-Tangible-Asset has ranged from 2.76 to 3.97. According to the industry distribution chart, Essential Utilities ranks #255 out of 510 companies in the Utilities - Regulated industry, placing it in the top 50%.
Is Essential Utilities' Return-on-Tangible-Asset too high?
Essential Utilities' current Return-on-Tangible-Asset of 2.38% is 34% below median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 2.76 to a high of 3.97. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.33. Essential Utilities' value of 2.38% is 28.5% below this industry median. Based on the distribution chart, Essential Utilities ranks #255 out of 510 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Essential Utilities has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Return-on-Tangible-Asset compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #255 out of 510 companies for Return-on-Tangible-Asset. This puts Essential Utilities in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.33. Essential Utilities' value of 2.38% is 28.5% below this benchmark. Historically, Essential Utilities' own Return-on-Tangible-Asset has ranged from 2.76 to 3.97 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 3.33, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.33, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current Return-on-Tangible-Asset of 2.38% is 28.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Return-on-Tangible-Asset is 2.38%, which is 34% below median its own 10-year median of 3.63. 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?
Essential Utilities (MEX:WTRG) has a current Return-on-Tangible-Asset of 2.38%. The current Return-on-Tangible-Asset is 2.38%, which is 34% below median its 10-year median of 3.63 and 28.5% below the Utilities - Regulated industry median of 3.33. Essential Utilities' overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Essential Utilities (MEX:WTRG), the current Return-on-Tangible-Asset is 2.38% 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.
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.
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