Essential UtilitiesMEX:WTRG 74 ROE % is 13.06% as of Mar. 2026, which is 43% above its 10-year median of 9.14. GuruFocus rates MEX:WTRG with a GF Score™ of 74/100. The stock has 7 warning signs investors should review. Among 505 Utilities - Regulated companies, Essential Utilities ranks worse than 53.07% on this metric.
The historical rank and industry rank for Essential Utilities's ROE % or its related term are showing as below:
MEX:WTRG'
s ROE % Range Over the Past 10 Years
Min: 6.65 Med: 9.14 Max: 13.1
Current: 8.25
During the past 13 years, Essential Utilities's highest ROE % was 13.10%. The lowest was 6.65%. And the median was 9.14%.
MEX:WTRG's ROE % is ranked worse than 53.07% of 505
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs MEX:WTRG: 8.25
Essential Utilities (MEX:WTRG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Essential Utilities ROE % Related Terms
Essential Utilities ROE % Historical Data
* Premium members only.
The historical data trend for Essential Utilities's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's ROE % distribution charts can be found below:
* The bar in red indicates where Essential Utilities's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Essential Utilities (MEX:WTRG) has a ROE % of 13.06% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Essential Utilities and its competitors. This is 43% above median its historical median of 9.14. Over the past decade, Essential Utilities' ROE % has ranged from 6.65 to 13.10. According to the industry distribution chart, Essential Utilities ranks #268 out of 505 companies in the Utilities - Regulated industry, placing it in the top 53.1%.
Is Essential Utilities' ROE % too high?
Essential Utilities' current ROE % of 13.06% is 43% above median its 10-year median of 9.14. Over the past 10 years, this metric has ranged from a low of 6.65 to a high of 13.10. The Utilities - Regulated industry median ROE % is 8.62. Essential Utilities' value of 13.06% is 51.5% above this industry median. Based on the distribution chart, Essential Utilities ranks #268 out of 505 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Essential Utilities has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' ROE % compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #268 out of 505 companies for ROE %. This places Essential Utilities in the lower half of its industry. The industry median ROE % is 8.62. Essential Utilities' value of 13.06% is 51.5% above this benchmark. Historically, Essential Utilities' own ROE % has ranged from 6.65 to 13.10 over the past decade. While the company's 10-year median is 9.14 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current ROE % of 13.06% is 51.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current ROE % is 13.06%, which is 43% above median its own 10-year median of 9.14. 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 ROE % of 13.06%. The current ROE % is 13.06%, which is 43% above median its 10-year median of 9.14 and 51.5% above the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Essential Utilities (MEX:WTRG), the current ROE % is 13.06% 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.
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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