Essential Utilities Inc. (WTRG) exhibits 41.0% gross margins and 9.9% return on invested capital within Utilities (Water Supply), balanced against a 4.5x enterprise multiple and 5.5% implied options volatility.
Sustained 41.0% gross profitability converts into 36.7% operating margin and 9.9% ROIC, outpacing sector cost of capital.
ROIC: 9.9% // GM: 41.0%YoY revenue trajectory of +10.1% paired with -8.79% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +10.1% // FCF YLD: -8.79%Altman Z-Score of 1.52 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.52 // F-SCORE: 6/9Trading at 10.9x trailing P/E (10.1x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 10.9x // EV/EBITDA: 4.5xOptions market prices a ±5.5% implied move with a 0.88 put/call ratio around $42.00 max pain.
IMPL MOVE: ±5.5% // P/C: 0.88Elevated industry capital intensity and customer concentration in Water Supply require continuous execution to defend 21.7% net margins.
NET MARGIN: 21.7% // D/E: 1.18x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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