Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Utilities Sector Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies11
  • 7D3.3%
  • 3M10.1%
  • 1Y31.1%
  • YTD6.6%

Over the last 7 days, the Utilities industry has risen 2.8%, driven by gains from National Grid of 3.4%. Meanwhile, Cindrigo Holdings actually underperformed within the industry, shrinking 14% in the last week. This takes the industry's 12 month performance to a gain of 31%. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 29 Jan 2026UK£123.3bUK£61.8bUK£4.8b21.1x25.4x2x
Sat, 27 Dec 2025UK£113.2bUK£61.8bUK£4.8b19.7x23.4x1.8x
Mon, 24 Nov 2025UK£113.2bUK£61.8bUK£4.8b18.6x23.7x1.8x
Wed, 22 Oct 2025UK£107.7bUK£62.1bUK£4.7b17.5x22.7x1.7x
Fri, 19 Sep 2025UK£99.1bUK£62.1bUK£4.7b18.1x20.9x1.6x
Sun, 17 Aug 2025UK£101.5bUK£62.1bUK£4.7b16.5x21.4x1.6x
Tue, 15 Jul 2025UK£101.4bUK£63.0bUK£6.4b14.6x15.8x1.6x
Thu, 12 Jun 2025UK£101.9bUK£63.0bUK£6.4b14.4x15.8x1.6x
Sat, 10 May 2025UK£99.8bUK£63.8bUK£5.9b10.5x16.9x1.6x
Mon, 07 Apr 2025UK£96.6bUK£63.9bUK£5.9b11.1x16.3x1.5x
Wed, 05 Mar 2025UK£90.8bUK£63.9bUK£5.9b10x15.4x1.4x
Fri, 31 Jan 2025UK£91.6bUK£65.7bUK£5.8b10.3x15.8x1.4x
Sun, 29 Dec 2024UK£91.1bUK£65.7bUK£5.8b10.5x15.7x1.4x
Tue, 26 Nov 2024UK£95.9bUK£65.8bUK£5.8b10.9x16.5x1.5x
Thu, 24 Oct 2024UK£97.7bUK£66.5bUK£6.1b12.1x16.1x1.5x
Sat, 21 Sep 2024UK£98.8bUK£66.3bUK£6.1b12x16.3x1.5x
Mon, 19 Aug 2024UK£95.8bUK£66.4bUK£6.1b12.2x15.8x1.4x
Wed, 17 Jul 2024UK£91.6bUK£73.1bUK£8.8b13.1x10.4x1.3x
Fri, 14 Jun 2024UK£88.2bUK£73.8bUK£8.6b12.3x10.2x1.2x
Sun, 12 May 2024UK£89.9bUK£75.7bUK£7.8b14.1x11.5x1.2x
Tue, 09 Apr 2024UK£82.3bUK£75.7bUK£7.8b13.2x10.6x1.1x
Thu, 07 Mar 2024UK£84.5bUK£75.6bUK£7.8b13.6x10.9x1.1x
Sat, 03 Feb 2024UK£86.1bUK£81.4bUK£7.8b12x11x1.1x
Mon, 01 Jan 2024UK£89.0bUK£81.4bUK£7.8b11.4x11.4x1.1x
Wed, 29 Nov 2023UK£88.6bUK£81.4bUK£7.8b13.4x11.3x1.1x
Fri, 27 Oct 2023UK£84.4bUK£82.7bUK£7.5b12.8x11.2x1x
Sun, 24 Sep 2023UK£84.6bUK£82.6bUK£7.5b13.3x11.3x1x
Tue, 22 Aug 2023UK£79.5bUK£82.5bUK£7.5b12.8x10.6x1x
Thu, 20 Jul 2023UK£85.5bUK£75.8bUK£2.4b20.4x35.9x1.1x
Sat, 17 Jun 2023UK£87.0bUK£74.5bUK£2.3b24.3x37.4x1.2x
Mon, 15 May 2023UK£92.5bUK£71.9bUK£4.1b18.5x22.4x1.3x
Wed, 12 Apr 2023UK£92.8bUK£71.9bUK£4.1b18.2x22.4x1.3x
Fri, 10 Mar 2023UK£85.5bUK£71.8bUK£4.1b18x20.7x1.2x
Sun, 05 Feb 2023UK£85.5bUK£64.9bUK£4.0b14.7x21.3x1.3x
Price to Earnings Ratio

21.3x


Total Market Cap: UK£85.5bTotal Earnings: UK£4.0bTotal Revenue: UK£64.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.2x202420252026
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 25.3x which is higher than its 3-year average PE of 17.2x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 6.5% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

GB Market0.52%
Utilities3.28%
Other Utilities3.42%
Electric Utilities3.37%
Water Utilities2.81%
Renewable Energy2.26%
Gas Utilities0%0
Industry PE
  • Investors are most optimistic about the Electric Utilities industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 19.6%, which is higher than its past year's earnings decline of 26.4% per year.
  • Investors are most pessimistic about the Renewable Energy industry, which is trading below its 3-year average of 8.9x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 26% per year.
  • In contrast, the Renewable Energy industry is expected to see its earnings decline by 17% 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£12.313.4%
+UK£2.0b		27.0%PE21.3x
SSE SSEUK£24.133.4%
+UK£948.3m		52.5%PE30.2x
CNA CentricaUK£1.914.1%
+UK£341.3m		37.0%PS0.4x
SVT Severn TrentUK£29.322.7%
+UK£228.8m		18.7%PE28x
UU. United Utilities GroupUK£12.442.7%
+UK£225.0m		24.5%PE21.1x

Latest News

DRX
UK£9.11
Drax Group
7D
2.4%
1Y
48.5%

Are Drax Group plc (LON:DRX) Investors Paying Above The Intrinsic Value?

Jan 28
Are Drax Group plc (LON:DRX) Investors Paying Above The Intrinsic Value?
NG.
UK£12.31
National Grid
7D
3.4%
1Y
27.0%

NG.: Dividend Outlook And Regulation Will Shape Steady Long Term Returns

Narrative Update Overview Analysts have modestly raised their fair value estimate for National Grid to £12.31 from £12.08, citing updated assumptions for future revenue growth, profit margins and P/E. These updates still use an unchanged 7.07% discount rate.
TEP
UK£13.62
Telecom Plus
7D
1.3%
1Y
-17.2%

TEP: Interim Dividend And Steady Assumptions Will Support Future Shareholder Returns

Analysts have left their price target for Telecom Plus unchanged at £23.48, indicating stable views on revenue, profit margins and future P/E assumptions in their latest models. What's in the News Telecom Plus proposed an interim dividend of 38 pence per share for the six months ended 30 September 2025, compared with 37 pence per share for H1 FY25 (Key Developments).
UU.
UK£12.44
United Utilities Group
7D
2.7%
1Y
24.5%

UU.: Medium-Term Guidance And Dividends Will Balance Regulatory And Execution Risks

Narrative Update on United Utilities Group Analysts have nudged their fair value estimate for United Utilities Group from £13.03 to £13.17, reflecting updated views on discount rates, revenue growth, profit margins and future P/E assumptions, alongside recent Street research that includes a higher £13.27 price target and a separate downgrade in rating. Analyst Commentary Recent Street research on United Utilities Group highlights a mix of optimism on valuation and caution on execution risk.
CNA
UK£1.91
Centrica
7D
4.1%
1Y
37.0%

CNA: Neutral Stance Will Hinge On Execution And Margin Resilience

Analysts have trimmed their fair value estimate for Centrica slightly, now seeing it closer to £1.96 per share. Updated assumptions on revenue growth, profit margins and future P/E have led to a more cautious stance, which is reflected in the recent move to a Neutral rating with a £1.85 price target.
SSE
UK£24.13
SSE
7D
3.4%
1Y
52.5%

SSE: Higher Earnings Visibility May Support Future Grid Funding Needs

Analysts have nudged their fair value estimate for SSE higher to £25.16 from £24.50. This reflects recent price target increases from several banks that highlight expectations for steadier profit margins and a slightly richer forward P/E multiple.
PNN
UK£5.65
Pennon Group
7D
3.6%
1Y
2.0%
SVT
UK£29.32
Severn Trent
7D
2.7%
1Y
18.7%

SVT: Dividend Policy And CEO Transition Will Guide Balanced Return Outlook

Analysts have nudged their fair value estimate for Severn Trent higher, with the updated price target moving from £29.30 to about £29.60. This reflects small adjustments to long term growth, profit margin and P/E assumptions informed by recent Street research, including Citi’s latest target cut to £28.49.
CINH
UK£0.06
Cindrigo Holdings
7D
-14.3%
1Y
n/a
MAST
UK£0.034
Quantum Data Energy
7D
-11.2%
1Y
-57.0%