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

U.K. (FTSE) Utilities Sector Analysis

UpdatedFeb 06, 2026
DataAggregated Company Financials
Companies11
  • 7D2.9%
  • 3M13.4%
  • 1Y35.2%
  • YTD9.6%

Over the last 7 days, the Utilities industry has risen 2.9%, driven by gains from National Grid of 4.2%. In the last 12 months, the industry was up 35%. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Feb 2026UK£126.9bUK£61.8bUK£4.8b21.7x26.2x2.1x
Sun, 04 Jan 2026UK£115.8bUK£61.8bUK£4.8b20x23.9x1.9x
Tue, 02 Dec 2025UK£114.6bUK£62.0bUK£4.8b19x23.6x1.8x
Thu, 30 Oct 2025UK£109.5bUK£62.1bUK£4.7b17.6x23.1x1.8x
Sat, 27 Sep 2025UK£100.8bUK£62.1bUK£4.7b16.6x21.3x1.6x
Mon, 25 Aug 2025UK£102.1bUK£62.1bUK£4.7b16.6x21.6x1.6x
Wed, 23 Jul 2025UK£106.6bUK£63.0bUK£6.4b15.3x16.6x1.7x
Fri, 20 Jun 2025UK£102.0bUK£63.0bUK£6.4b14.4x15.9x1.6x
Sun, 18 May 2025UK£100.8bUK£62.9bUK£7.2b11.1x14.1x1.6x
Tue, 15 Apr 2025UK£96.3bUK£63.8bUK£5.9b10.1x16.3x1.5x
Thu, 13 Mar 2025UK£89.4bUK£63.9bUK£5.9b10x15.2x1.4x
Sat, 08 Feb 2025UK£91.6bUK£65.7bUK£5.8b10.2x15.8x1.4x
Mon, 06 Jan 2025UK£91.9bUK£65.7bUK£5.8b10.4x15.8x1.4x
Wed, 04 Dec 2024UK£96.0bUK£65.7bUK£5.8b11x16.6x1.5x
Fri, 01 Nov 2024UK£95.0bUK£66.5bUK£6.1b11.7x15.7x1.4x
Sun, 29 Sep 2024UK£98.6bUK£66.5bUK£6.1b11.9x16.3x1.5x
Tue, 27 Aug 2024UK£96.1bUK£66.4bUK£6.1b12.3x15.9x1.4x
Thu, 25 Jul 2024UK£94.4bUK£73.1bUK£8.8b12.3x10.7x1.3x
Sat, 22 Jun 2024UK£90.1bUK£73.1bUK£8.8b13.1x10.2x1.2x
Mon, 20 May 2024UK£91.4bUK£75.7bUK£7.8b14.3x11.7x1.2x
Wed, 17 Apr 2024UK£82.6bUK£75.7bUK£7.8b13.4x10.6x1.1x
Fri, 15 Mar 2024UK£83.1bUK£75.6bUK£7.8b13.5x10.7x1.1x
Sun, 11 Feb 2024UK£80.5bUK£79.2bUK£7.7b13.3x10.4x1x
Tue, 09 Jan 2024UK£90.2bUK£81.4bUK£7.8b11.7x11.5x1.1x
Thu, 07 Dec 2023UK£89.8bUK£81.4bUK£7.8b11.8x11.5x1.1x
Sat, 04 Nov 2023UK£86.0bUK£82.7bUK£7.5b12.7x11.4x1x
Mon, 02 Oct 2023UK£82.1bUK£82.7bUK£7.5b13x10.9x1x
Wed, 30 Aug 2023UK£82.2bUK£82.5bUK£7.5b13.1x11x1x
Fri, 28 Jul 2023UK£85.9bUK£75.8bUK£2.4b19.2x36.1x1.1x
Sun, 25 Jun 2023UK£85.5bUK£74.5bUK£2.3b23.4x36.7x1.1x
Tue, 23 May 2023UK£89.8bUK£72.6bUK£3.9b17.3x22.9x1.2x
Thu, 20 Apr 2023UK£90.5bUK£71.9bUK£4.1b18.4x21.9x1.3x
Sat, 18 Mar 2023UK£84.6bUK£71.9bUK£4.1b18.2x20.5x1.2x
Mon, 13 Feb 2023UK£85.1bUK£64.9bUK£4.0b14.3x21.2x1.3x
Price to Earnings Ratio

21.2x


Total Market Cap: UK£85.1bTotal 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 26.2x which is higher than its 3-year average PE of 17.2x.
  • 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 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 Market0.74%
Utilities2.90%
Other Utilities3.71%
Electric Utilities2.38%
Water Utilities1.79%
Gas Utilities0%0
Renewable Energy-2.81%
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 20.0%, 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 8.8x.
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 16% 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£12.854.1%
+UK£2.5b		30.8%PE22.2x
SSE SSEUK£25.103.6%
+UK£1.4b		60.9%PE31.7x
UU. United Utilities GroupUK£12.762.3%
+UK£197.7m		28.1%PE21.7x
SVT Severn TrentUK£29.811.8%
+UK£159.6m		21.1%PE28.5x
CNA CentricaUK£1.920.3%
+UK£27.1m		40.3%PS0.4x

Latest News

SVT
UK£29.81
Severn Trent
7D
1.8%
1Y
21.1%

We Think Severn Trent (LON:SVT) Is Taking Some Risk With Its Debt

Feb 05
We Think Severn Trent (LON:SVT) Is Taking Some Risk With Its Debt
UU.
UK£12.76
United Utilities Group
7D
2.3%
1Y
28.1%
NG.
UK£12.85
National Grid
7D
4.1%
1Y
30.8%

Estimating The Intrinsic Value Of National Grid plc (LON:NG.)

Feb 04
Estimating The Intrinsic Value Of National Grid plc (LON:NG.)
DRX
UK£8.79
Drax Group
7D
-2.4%
1Y
38.4%

DRX: New Low Carbon Contract Will Support Earnings With Sustainability Trade Offs

Analysts have lifted their fair value estimate for Drax Group from £8.24 to £9.29, citing updated assumptions around discount rates, revenue trends, profit margins, and a higher future P/E multiple. What's in the News Drax Group signed an agreement with the Low Carbon Contracts Company for a low carbon dispatchable contract for difference covering all four biomass units at Drax Power Station from April 2027 to March 2031, with a strike price of £109.90/MWh in 2012 real terms (Key Developments).
PNN
UK£5.50
Pennon Group
7D
0.6%
1Y
23.3%
TEP
UK£13.44
Telecom Plus
7D
0.9%
1Y
-21.7%

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).
CNA
UK£1.92
Centrica
7D
0.3%
1Y
40.3%

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£25.10
SSE
7D
3.6%
1Y
60.9%

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.
YU.
UK£18.30
Yü Group
7D
7.0%
1Y
19.2%
CINH
UK£0.055
Cindrigo Holdings
7D
-4.3%
1Y
n/a