Essential Utilities Inc
WTRG: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$12.00 | Zwrqrh | Wvqdvthq |
Essential Utilities' Water Business Is Its Growth Engine
Business Strategy and Outlook
For more than 50 years, Essential Utilities--formerly Aqua America--was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix. The gas business contributes about one third of earnings on a normalized basis. We think that share will slowly shrink as Essential continues to pursue municipal water system acquisitions.