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U.K. (FTSE) Utilities Sector Analysis

UpdatedAug 24, 2026
DataAggregated Company Financials
Companies12
  • 7D-0.5%
  • 3M-7.5%
  • 1Y14.7%
  • YTD2.7%

Over the last 7 days, the Utilities industry has remained flat. As for the the longer term, the industry is up 15% over the past 12 months. Looking forward, earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 24 Aug 2026UK£119.8bUK£62.2bUK£6.4b18x18.8x1.9x
Wed, 22 Jul 2026UK£123.4bUK£62.3bUK£5.6b17.9x21.9x2x
Fri, 19 Jun 2026UK£119.3bUK£62.2bUK£5.6b17.4x21.2x1.9x
Sun, 17 May 2026UK£119.5bUK£62.0bUK£5.2b17.2x22.8x1.9x
Tue, 14 Apr 2026UK£133.6bUK£61.6bUK£4.7b23.1x28.5x2.2x
Thu, 12 Mar 2026UK£132.5bUK£61.6bUK£4.7b23.1x28.3x2.2x
Sat, 07 Feb 2026UK£127.8bUK£61.8bUK£4.8b21.7x26.4x2.1x
Mon, 05 Jan 2026UK£115.8bUK£61.8bUK£4.8b20x23.9x1.9x
Wed, 03 Dec 2025UK£115.1bUK£62.0bUK£4.8b18.6x23.7x1.9x
Fri, 31 Oct 2025UK£110.2bUK£62.1bUK£4.7b17.8x23.3x1.8x
Sun, 28 Sep 2025UK£100.8bUK£62.1bUK£4.7b16.6x21.3x1.6x
Tue, 26 Aug 2025UK£102.1bUK£62.1bUK£4.7b16.6x21.6x1.6x
Thu, 24 Jul 2025UK£104.2bUK£63.0bUK£6.4b15x16.2x1.7x
Sat, 21 Jun 2025UK£101.7bUK£63.0bUK£6.4b14.3x15.8x1.6x
Mon, 19 May 2025UK£100.8bUK£62.9bUK£7.2b11.1x14.1x1.6x
Wed, 16 Apr 2025UK£98.2bUK£63.8bUK£5.9b10.3x16.6x1.5x
Fri, 14 Mar 2025UK£89.5bUK£63.9bUK£5.9b10x15.2x1.4x
Sun, 09 Feb 2025UK£91.6bUK£65.7bUK£5.8b10.2x15.8x1.4x
Tue, 07 Jan 2025UK£91.1bUK£65.7bUK£5.8b10.4x15.7x1.4x
Thu, 05 Dec 2024UK£95.0bUK£65.7bUK£5.8b11x16.4x1.4x
Sat, 02 Nov 2024UK£94.3bUK£66.5bUK£6.1b11.7x15.6x1.4x
Mon, 30 Sep 2024UK£98.6bUK£66.5bUK£6.1b11.9x16.3x1.5x
Wed, 28 Aug 2024UK£96.0bUK£66.4bUK£6.1b12.3x15.9x1.4x
Fri, 26 Jul 2024UK£93.5bUK£73.1bUK£8.8b12.3x10.6x1.3x
Sun, 23 Jun 2024UK£90.1bUK£73.1bUK£8.8b13.1x10.2x1.2x
Tue, 21 May 2024UK£91.0bUK£75.7bUK£7.8b14.3x11.7x1.2x
Thu, 18 Apr 2024UK£81.7bUK£75.7bUK£7.8b13.3x10.5x1.1x
Sat, 16 Mar 2024UK£83.5bUK£75.6bUK£7.8b13.5x10.7x1.1x
Mon, 12 Feb 2024UK£80.5bUK£79.2bUK£7.7b13.3x10.4x1x
Wed, 10 Jan 2024UK£91.0bUK£81.4bUK£7.8b11.7x11.6x1.1x
Fri, 08 Dec 2023UK£90.6bUK£81.4bUK£7.8b11.8x11.6x1.1x
Sun, 05 Nov 2023UK£86.0bUK£82.7bUK£7.5b12.7x11.4x1x
Tue, 03 Oct 2023UK£82.1bUK£82.7bUK£7.5b12.8x10.9x1x
Thu, 31 Aug 2023UK£82.3bUK£82.5bUK£7.5b13x11x1x
Price to Earnings Ratio

11x


Total Market Cap: UK£82.3bTotal Earnings: UK£7.5bTotal Revenue: UK£82.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.2x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Utilities industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 17.2x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have declined 5.4% per year over the last three years,
  • Revenues have also declined 9.0% 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 Market0.93%
Utilities-0.51%
Renewable Energy2.64%
Water Utilities2.45%
Gas Utilities0%0
Electric Utilities-0.58%
Other Utilities-1.56%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 10.4x.
    • Analysts are expecting annual earnings growth of 21.1%, which is higher than its past year's earnings decline of 44.1% per year.
  • Investors are most pessimistic about the Other Utilities industry, which is trading close to its 3-year average of 16.5x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings decline of 44% 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
UU. United Utilities GroupUK£14.242.6%
+UK£267.4m		22.1%PE18x
SVT Severn TrentUK£31.142.4%
+UK£223.5m		18.9%PE25.4x
DRX Drax GroupUK£7.453.0%
+UK£72.4m		5.8%PE131.9x
PNN Pennon GroupUK£4.621.8%
+UK£38.7m		-6.3%PE23.8x
JEL Jersey ElectricityUK£4.401.1%
+UK£1.5m		-6.4%PE12.6x

Latest News

TEP
UK£8.71
Telecom Plus
7D
-3.9%
1Y
-53.8%
CNA
UK£1.54
Centrica
7D
-1.4%
1Y
-6.8%
SSE
UK£23.86
SSE
7D
-0.6%
1Y
33.0%
DRX
UK£7.45
Drax Group
7D
3.0%
1Y
5.8%
Narrative Update • Aug 10

DRX: Future Cash Returns Look Set To Support Higher Upside

Drax Group's updated analyst price target reflects a mixed set of recent revisions, including the increase to £10.50 and reductions to about £8.14 that analysts link to adjusted fair value estimates, changes in projected profit margins and updated future P/E assumptions. Analyst Commentary Recent research on Drax Group highlights a mix of optimism and caution around the stock's valuation, profit potential and execution risks.
JEL
UK£4.40
Jersey Electricity
7D
1.1%
1Y
-6.4%
NG.
UK£11.71
National Grid
7D
-1.6%
1Y
11.6%
UU.
UK£14.24
United Utilities Group
7D
2.6%
1Y
22.1%
Narrative Update • Aug 03

UU.: Supportive Regulation And Mixed Sentiment Will Shape Post Repricing Outcomes

United Utilities Group's analyst fair value estimate has edged higher to £15.07 from £14.80 as analysts weigh a mix of higher and lower price targets across the Street, along with updated assumptions on revenue growth, profit margins and future P/E levels. Analyst Commentary Recent research on United Utilities Group shows a mix of optimism and caution as analysts adjust price targets in light of sector regulation, revenue expectations and valuation assumptions.
SVT
UK£31.14
Severn Trent
7D
2.4%
1Y
18.9%
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.
PNN
UK£4.62
Pennon Group
7D
1.8%
1Y
-6.3%