Essential Utilities (HAM:A2A) ROCE %: 6.77% (As of Mar. 2026)


HAM:A2A Essential Utilities Inc HAM:A2A
74 GF Score
Price €32.61
GF Value €35.55
Valuation Fairly Valued
! 7 Warning Signs
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What is Essential Utilities ROCE %?

Essential Utilities HAM:A2A +0.06% 74 ROCE % is 6.77% as of Mar. 2026. GuruFocus rates HAM:A2A with a GF Score™ of 74/100 and a GF Value™ of €35.55 (Fairly Valued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Essential Utilities's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.77%.

Essential Utilities  (HAM:A2A) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Essential Utilities ROCE % Related Terms

Essential Utilities ROCE % Historical Data

* Premium members only.

The historical data trend for Essential Utilities's ROCE % 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 ROCE % Chart

Essential Utilities Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.82 4.96 4.59 5.40 5.02

Essential Utilities Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 7.85 4.19 3.92 5.06 6.77
HAM:A2A
74GF Score
Essential Utilities Inc HAM:A2A
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Essential Utilities ROCE % Calculation

Essential Utilities's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=810.356/( ( (17215.359 - 930.808) + (16622.978 - 652.868) )/ 2 )
=810.356/( (16284.551+15970.11)/ 2 )
=810.356/16127.3305
=5.02 %

Essential Utilities's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1100.576/( ( (16622.978 - 652.868) + (17109.799 - 566.096) )/ 2 )
=1100.576/( ( 15970.11 + 16543.703 )/ 2 )
=1100.576/16256.9065
=6.77 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 6.77% mean?
Essential Utilities (HAM:A2A) has a ROCE % of 6.77% as of Mar. 2026.
Is Essential Utilities' ROCE % too high?
Essential Utilities' current ROCE % is 6.77%. The Utilities - Regulated industry median ROCE % is 6.96. Essential Utilities' value of 6.77% is 2.7% below this industry median. 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' ROCE % compare to AWR and CWT?
Essential Utilities' ROCE % of 6.77% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.96. Essential Utilities' value of 6.77% is 2.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.96, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current ROCE % of 6.77% is 2.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current ROCE % is 6.77%. 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 €35.55, compared to a current price of €32.61 — trading 8.3% below its estimated fair value. The current ROCE % is 6.77% and 2.7% below the Utilities - Regulated industry median of 6.96. Essential Utilities' overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Essential Utilities (HAM:A2A), the current ROCE % is 6.77% 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 €32.61 is trading 8.3% below its estimated GF Value™ of €35.55. GuruFocus considers Essential Utilities to be Fairly Valued.

Key valuation signals for HAM:A2A:

  • ROCE %: 6.77%
  • GF Value™: €35.55 vs. price of €32.61 (8.3% below fair value)
  • GF Score™: 74/100 with 7 warning signs
  • Industry Position: 2.7% below the Utilities - Regulated median

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 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.
74GF Score

Get the complete analysis for HAM:A2A

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€32.61
Price
€35.55
GF Value