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U.K. (FTSE) Utilities Sector Analysis

UpdatedJul 26, 2026
DataAggregated Company Financials
Companies14
  • 7D-2.0%
  • 3M-6.3%
  • 1Y16.9%
  • YTD5.7%

Over the last 7 days, the Utilities industry has dropped 2.0%, driven by a pullback from National Grid of 1.6%. Meanwhile, Yü Group actually outperformed within the industry, gaining 8.8% in the last week. This takes the industry's 12 month performance to a gain of 17%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

Has the U.K. Utilities Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 26 Jul 2026UK£123.4bUK£62.3bUK£6.4b17.3x19.2x2x
Tue, 23 Jun 2026UK£121.1bUK£62.2bUK£5.6b17.6x21.6x1.9x
Thu, 21 May 2026UK£125.2bUK£62.0bUK£5.2b18.2x23.9x2x
Sat, 18 Apr 2026UK£127.7bUK£61.6bUK£4.7b22.9x27.3x2.1x
Mon, 16 Mar 2026UK£136.6bUK£61.6bUK£4.7b23.8x29.2x2.2x
Wed, 11 Feb 2026UK£128.8bUK£61.8bUK£4.8b21.8x26.6x2.1x
Fri, 09 Jan 2026UK£118.3bUK£61.8bUK£4.8b20.4x24.4x1.9x
Sun, 07 Dec 2025UK£113.4bUK£62.0bUK£4.8b18.2x23.4x1.8x
Tue, 04 Nov 2025UK£108.6bUK£62.1bUK£4.7b17.6x23x1.7x
Thu, 02 Oct 2025UK£103.0bUK£62.1bUK£4.7b16.6x21.7x1.7x
Sat, 30 Aug 2025UK£100.3bUK£62.1bUK£4.7b16x21.2x1.6x
Mon, 28 Jul 2025UK£103.2bUK£62.6bUK£4.9b17.1x21.2x1.6x
Wed, 25 Jun 2025UK£103.7bUK£63.0bUK£6.4b14.7x16.1x1.6x
Fri, 23 May 2025UK£103.1bUK£63.0bUK£6.4b14.1x16x1.6x
Sun, 20 Apr 2025UK£100.3bUK£63.8bUK£5.9b10.4x17x1.6x
Tue, 18 Mar 2025UK£90.9bUK£63.9bUK£5.9b10.1x15.4x1.4x
Thu, 13 Feb 2025UK£89.6bUK£65.7bUK£5.8b10.1x15.4x1.4x
Sat, 11 Jan 2025UK£87.8bUK£65.7bUK£5.8b10.2x15.1x1.3x
Mon, 09 Dec 2024UK£93.6bUK£65.7bUK£5.8b10.9x16.1x1.4x
Wed, 06 Nov 2024UK£94.5bUK£66.5bUK£6.1b11.5x15.6x1.4x
Fri, 04 Oct 2024UK£97.1bUK£66.5bUK£6.1b11.9x16x1.5x
Sun, 01 Sep 2024UK£96.7bUK£66.4bUK£6.1b12.1x16x1.5x
Tue, 30 Jul 2024UK£95.6bUK£66.4bUK£6.1b12.3x15.8x1.4x
Thu, 27 Jun 2024UK£89.2bUK£73.1bUK£8.8b13.1x10.1x1.2x
Sat, 25 May 2024UK£79.3bUK£73.8bUK£8.6b11.9x9.2x1.1x
Mon, 22 Apr 2024UK£83.7bUK£75.7bUK£7.8b13.6x10.7x1.1x
Wed, 20 Mar 2024UK£82.8bUK£75.6bUK£7.8b13.4x10.6x1.1x
Fri, 16 Feb 2024UK£81.8bUK£79.2bUK£7.7b13.5x10.6x1x
Sun, 14 Jan 2024UK£89.6bUK£81.4bUK£7.8b11.8x11.5x1.1x
Tue, 12 Dec 2023UK£89.9bUK£81.4bUK£7.8b11.8x11.5x1.1x
Thu, 09 Nov 2023UK£83.6bUK£82.7bUK£7.5b12.4x11.1x1x
Sat, 07 Oct 2023UK£79.1bUK£82.7bUK£7.5b12.7x10.5x1x
Mon, 04 Sep 2023UK£81.8bUK£82.5bUK£7.5b13x10.9x1x
Wed, 02 Aug 2023UK£84.1bUK£82.5bUK£7.5b13.4x11.2x1x
Price to Earnings Ratio

11.2x


Total Market Cap: UK£84.1bTotal Earnings: UK£7.5bTotal Revenue: UK£82.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17x202420252026
Current Industry PE
  • Investors are optimistic on the British Utilities industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 19.2x which is higher than its 3-year average PE of 17.0x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have declined 5.1% per year over the last three years,
  • Revenues have also declined 8.9% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.K. Utilities sector?

GB Market1.20%
Utilities-2.04%
Gas Utilities0%0
Renewable Energy-0.14%
Water Utilities-1.44%
Other Utilities-2.05%
Electric Utilities-2.64%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.6x.
    • Analysts are expecting annual earnings growth of 21.9%, which is higher than its past year's earnings decline of 39.5% per year.
  • Investors are most pessimistic about the Other Utilities industry, which is trading close to its 3-year average of 16.3x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 39% per year.
  • In contrast, the Other Utilities industry is expected to see its earnings grow by 10% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
YU. Yü GroupUK£17.858.8%
+UK£25.1m		18.2%PE8.6x
JEL Jersey ElectricityUK£4.450.7%
+UK£919.2k		-6.3%PE12.7x

Latest News

CNA
UK£1.63
Centrica
7D
-5.9%
1Y
0.2%
Narrative Update • Jul 24

CNA: Higher Margins And Governance Reforms Will Support Future Upside

Centrica's analyst price target has been trimmed slightly, with recent cuts of £4 to £214 at Citi and £8 to £227 and then £10 to £235 at JPMorgan, reflecting adjustments to revenue expectations alongside modest tweaks to fair value and forward P/E assumptions, while profit margin estimates have edged higher. Analyst Commentary Recent research on Centrica shows a mix of optimism and caution, with price targets clustered in a relatively tight range and most firms maintaining positive ratings even as they fine tune their assumptions.
NG.
UK£12.38
National Grid
7D
-1.6%
1Y
16.5%
SVT
UK£30.20
Severn Trent
7D
-1.5%
1Y
13.1%
Narrative Update • Jul 16

SVT: Dividend Policy And Supportive Regulation Will Shape Balanced 3,500 GBp Outlook

The analyst fair value estimate for Severn Trent has moved modestly higher to £32.47 from £31.69, as analysts factor in updated assumptions on revenue growth, profit margins and future P/E multiples, against a backdrop of mixed price target revisions and a more supportive regulatory setting for UK water utilities. Analyst Commentary Recent Street research on Severn Trent reflects a mix of optimism and caution, with analysts adjusting price targets around the current fair value estimate while weighing the impact of the UK water sector's changing regulatory setting.
SSE
UK£24.22
SSE
7D
-2.7%
1Y
30.7%
PNN
UK£4.68
Pennon Group
7D
-5.3%
1Y
-6.4%
YU.
UK£17.85
Yü Group
7D
8.8%
1Y
18.2%
New Narrative • Jul 15

Massive Cash Pile. Accelerating Growth. Is the Market Mispricing Yü Group?

Quick Take Yü Group (LON) has quietly become one of the UK's fastest-growing business energy suppliers. Despite holding cash equivalent to roughly one-third of its market capitalisation and analysts expecting revenue growth to accelerate from around 25% to more than 31%, the market still appears to value it like a traditional utility.
TEP
UK£8.52
Telecom Plus
7D
-3.2%
1Y
-55.9%
Narrative Update • Jul 13

TEP: Higher Dividend Outlook Will Support Future Income Appeal

Analysts have cut their Telecom Plus price target from £26.00 to £14.50 as they reset assumptions around future P/E, revenue growth and profit margins in light of updated forecasts. What’s in the News for Telecom Plus Telecom Plus proposed a final dividend of 12 pence per share for the year ended 31 March 2026, subject to shareholder approval at the AGM scheduled for 17 August 2026.
UU.
UK£13.68
United Utilities Group
7D
-0.5%
1Y
22.1%
Analysis Article • Jun 25

Additional Considerations Required While Assessing United Utilities Group's (LON:UU.) Strong Earnings

United Utilities Group PLC ( LON:UU. ) announced strong profits, but the stock was stagnant. We did some digging, and...
DRX
UK£7.64
Drax Group
7D
-1.0%
1Y
12.8%
Narrative Update • Jun 24

DRX: New Gas Capacity Will Support Long Term Cash Flows

Analysts have trimmed their price target on Drax Group to £8.16 from £9.23, citing updated assumptions on discount rate, revenue growth, profit margin and future P/E. Their overall view on the stock remains broadly unchanged.
JEL
UK£4.45
Jersey Electricity
7D
0.7%
1Y
-6.3%