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U.K. (FTSE) Utilities Sector Analysis

UpdatedMay 26, 2026
DataAggregated Company Financials
Companies14
  • 7D3.9%
  • 3M-5.4%
  • 1Y21.0%
  • YTD9.9%

In the last week, the Utilities industry is up 3.9%, with National Grid up 2.4%. During this same period, the Cindrigo Holdings underperformed, falling 13%. In the last 12 months, the industry was up 21%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 May 2026UK£128.2bUK£62.2bUK£5.3b18.4x24.2x2.1x
Thu, 23 Apr 2026UK£129.9bUK£61.6bUK£4.7b22.5x27.7x2.1x
Sat, 21 Mar 2026UK£126.0bUK£61.6bUK£4.7b21.5x26.9x2x
Mon, 16 Feb 2026UK£134.7bUK£61.8bUK£4.8b23.1x27.8x2.2x
Wed, 14 Jan 2026UK£115.7bUK£61.8bUK£4.8b19.9x23.9x1.9x
Fri, 12 Dec 2025UK£110.9bUK£62.0bUK£4.8b18.1x22.9x1.8x
Sun, 09 Nov 2025UK£110.2bUK£61.2bUK£4.8b17.3x23.1x1.8x
Tue, 07 Oct 2025UK£103.4bUK£62.1bUK£4.7b16.4x21.8x1.7x
Thu, 04 Sep 2025UK£96.7bUK£62.1bUK£4.7b17.9x20.4x1.6x
Sat, 02 Aug 2025UK£104.2bUK£62.1bUK£4.7b17.1x22x1.7x
Mon, 30 Jun 2025UK£102.8bUK£63.0bUK£6.4b14.5x16x1.6x
Wed, 28 May 2025UK£103.0bUK£63.0bUK£6.4b14.1x16x1.6x
Fri, 25 Apr 2025UK£100.1bUK£63.8bUK£5.9b10.3x17x1.6x
Sun, 23 Mar 2025UK£91.7bUK£64.0bUK£5.9b10.2x15.5x1.4x
Tue, 18 Feb 2025UK£89.7bUK£65.7bUK£5.8b10.1x15.5x1.4x
Thu, 16 Jan 2025UK£89.6bUK£65.7bUK£5.8b10.2x15.4x1.4x
Sat, 14 Dec 2024UK£92.4bUK£65.7bUK£5.8b10.8x15.9x1.4x
Mon, 11 Nov 2024UK£93.2bUK£66.0bUK£5.6b11.6x16.8x1.4x
Wed, 09 Oct 2024UK£94.7bUK£66.5bUK£6.1b11.7x15.6x1.4x
Fri, 06 Sep 2024UK£99.2bUK£66.4bUK£6.1b12.5x16.4x1.5x
Sun, 04 Aug 2024UK£97.4bUK£66.4bUK£6.1b12.3x16.1x1.5x
Tue, 02 Jul 2024UK£88.6bUK£73.1bUK£8.8b13.1x10.1x1.2x
Thu, 30 May 2024UK£76.6bUK£73.8bUK£8.6b11.8x8.9x1x
Sat, 27 Apr 2024UK£84.3bUK£75.7bUK£7.8b13.9x10.8x1.1x
Mon, 25 Mar 2024UK£84.3bUK£75.7bUK£7.8b9.8x10.8x1.1x
Wed, 21 Feb 2024UK£83.3bUK£75.8bUK£7.4b13.9x11.2x1.1x
Fri, 19 Jan 2024UK£86.1bUK£81.4bUK£7.8b12x11x1.1x
Sun, 17 Dec 2023UK£89.7bUK£81.4bUK£7.8b11.8x11.5x1.1x
Tue, 14 Nov 2023UK£84.8bUK£81.7bUK£7.4b12.9x11.5x1x
Thu, 12 Oct 2023UK£82.1bUK£82.7bUK£7.5b12.9x10.9x1x
Sat, 09 Sep 2023UK£83.0bUK£82.5bUK£7.5b13.1x11.1x1x
Mon, 07 Aug 2023UK£81.9bUK£82.5bUK£7.5b13.1x10.9x1x
Wed, 05 Jul 2023UK£86.1bUK£75.8bUK£2.4b19.9x36.4x1.1x
Fri, 02 Jun 2023UK£87.3bUK£74.5bUK£2.4b20.8x36.6x1.2x
Price to Earnings Ratio

36.6x


Total Market Cap: UK£87.3bTotal Earnings: UK£2.4bTotal Revenue: UK£74.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.8x202420252026
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 24.2x which is higher than its 3-year average PE of 17.8x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 30% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.8% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

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

GB Market1.42%
Utilities3.93%
Water Utilities5.18%
Renewable Energy4.54%
Other Utilities3.71%
Electric Utilities3.48%
Gas Utilities0%0
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.3x.
    • Analysts are expecting annual earnings growth of 13.8%, which is higher than its past year's earnings decline of 39.5% per year.
  • Investors are most pessimistic about the Water Utilities industry, which is trading below its 3-year average of 89.7x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is better than its past earnings decline of 26% per year.
  • In contrast, the Water Utilities industry is expected to see its earnings grow by 12% 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
NG. National GridUK£12.812.4%
+UK£1.5b		18.0%PE19.7x
SSE SSEUK£24.274.4%
+UK£1.2b		38.3%PE30.5x
SVT Severn TrentUK£31.283.9%
+UK£349.3m		14.3%PE25.4x
UU. United Utilities GroupUK£13.602.3%
+UK£230.3m		17.6%PE17.2x
DRX Drax GroupUK£8.483.6%
+UK£99.2m		32.0%PE39.1x

Latest News

CNA
UK£2.00
Centrica
7D
0.9%
1Y
28.3%
Narrative Update • May 24

CNA: Low Carbon And On Site Power Projects Will Shape Balanced Outlook

Analysts have lifted their blended price target for Centrica, with recent moves such as Berenberg's shift to £2.30 from £1.90, several JPMorgan adjustments around the £2.24 to £2.35 range, and higher targets from Goldman Sachs and RBC, reflecting updated views on revenue growth, profit margins and valuation multiples. Analyst Commentary Recent research on Centrica shows a split view, with several price target increases and a cluster of rating downgrades that revolve around execution risk, valuation and the timing of potential earnings growth.
SVT
UK£31.28
Severn Trent
7D
3.9%
1Y
14.3%
UU.
UK£13.60
United Utilities Group
7D
2.3%
1Y
17.6%
SSE
UK£24.27
SSE
7D
4.4%
1Y
38.3%
NG.
UK£12.81
National Grid
7D
2.4%
1Y
18.0%
Analysis Article • May 21

We Think That There Are Some Issues For National Grid (LON:NG.) Beyond Its Promising Earnings

National Grid plc's ( LON:NG. ) healthy profit numbers didn't contain any surprises for investors. We think this is due...
PNN
UK£5.29
Pennon Group
7D
4.1%
1Y
3.6%
Narrative Update • May 15

PNN: Higher Mid £6 Band Will Reflect Reassessed Cash Flow Visibility

Narrative Update Pennon Group's analyst price targets have edged higher into a £6.36 to £6.50 range, reflecting updated analyst assumptions around fair value, discount rate, revenue, profit margin and future P/E, and providing the basis for a modest uplift in the indicated valuation. Analyst Commentary Recent updates from major banks point to a tighter cluster of price targets for Pennon Group in the mid £6 range, with targets between 636 GBp and 650 GBp framing how analysts currently see valuation risk and opportunity.
TEP
UK£10.68
Telecom Plus
7D
1.3%
1Y
-47.1%
Narrative Update • May 13

TEP: Cautious Assumptions On Returns Still Indicate Undervalued Upside Potential

Narrative Update on Telecom Plus Analysts have reduced their price target on Telecom Plus from approximately £23.48 to £20.58, as they now apply a slightly higher discount rate and more cautious assumptions for revenue growth, profit margins and future P/E. Valuation Changes Fair Value: reduced from £23.48 to £20.58, a decline of around 12% in the modelled estimate.
DRX
UK£8.48
Drax Group
7D
3.6%
1Y
32.0%
CINH
UK£0.065
Cindrigo Holdings
7D
-13.3%
1Y
n/a