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

U.K. (FTSE) Utilities Sector Analysis

UpdatedJul 19, 2026
DataAggregated Company Financials
Companies14
  • 7D2.5%
  • 3M-2.9%
  • 1Y19.3%
  • YTD7.9%

In the last week, the Utilities industry is up 2.5%, with National Grid up 2.5%. During this same period, the Cindrigo Holdings underperformed, falling 11%. This means that the industry has gained 19% over the past year. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 19 Jul 2026UK£126.0bUK£62.3bUK£5.6b18.4x22.4x2x
Tue, 16 Jun 2026UK£121.2bUK£62.2bUK£5.6b17.4x21.6x1.9x
Thu, 14 May 2026UK£128.4bUK£61.6bUK£4.7b25.5x27.4x2.1x
Sat, 11 Apr 2026UK£136.3bUK£61.6bUK£4.7b23.7x29.1x2.2x
Mon, 09 Mar 2026UK£132.6bUK£61.6bUK£4.7b23.2x28.3x2.2x
Wed, 04 Feb 2026UK£124.9bUK£61.8bUK£4.8b21.4x25.8x2x
Fri, 02 Jan 2026UK£114.0bUK£61.8bUK£4.8b19.7x23.5x1.8x
Sun, 30 Nov 2025UK£114.9bUK£62.0bUK£4.8b19.4x23.7x1.9x
Tue, 28 Oct 2025UK£109.6bUK£62.1bUK£4.7b17.4x23.1x1.8x
Thu, 25 Sep 2025UK£100.6bUK£62.1bUK£4.7b16.7x21.2x1.6x
Sat, 23 Aug 2025UK£102.7bUK£62.1bUK£4.7b16.6x21.7x1.7x
Mon, 21 Jul 2025UK£103.1bUK£63.0bUK£6.4b14.9x16x1.6x
Wed, 18 Jun 2025UK£102.1bUK£63.0bUK£6.4b14.5x15.9x1.6x
Fri, 16 May 2025UK£99.4bUK£62.9bUK£7.2b10.8x13.9x1.6x
Sun, 13 Apr 2025UK£94.5bUK£63.8bUK£5.9b10.1x16x1.5x
Tue, 11 Mar 2025UK£89.3bUK£63.9bUK£5.9b9.9x15.1x1.4x
Thu, 06 Feb 2025UK£92.6bUK£65.7bUK£5.8b10.4x16x1.4x
Sat, 04 Jan 2025UK£91.9bUK£65.7bUK£5.8b10.4x15.8x1.4x
Mon, 02 Dec 2024UK£96.3bUK£65.7bUK£5.8b11.1x16.6x1.5x
Wed, 30 Oct 2024UK£95.2bUK£66.5bUK£6.1b11.6x15.7x1.4x
Fri, 27 Sep 2024UK£99.0bUK£66.5bUK£6.1b12x16.4x1.5x
Sun, 25 Aug 2024UK£96.1bUK£66.4bUK£6.1b12.3x15.9x1.4x
Tue, 23 Jul 2024UK£94.1bUK£73.1bUK£8.8b12.5x10.7x1.3x
Thu, 20 Jun 2024UK£89.7bUK£73.1bUK£8.8b13.1x10.2x1.2x
Sat, 18 May 2024UK£91.4bUK£75.7bUK£7.8b14.3x11.7x1.2x
Mon, 15 Apr 2024UK£83.5bUK£75.7bUK£7.8b13.4x10.7x1.1x
Wed, 13 Mar 2024UK£82.6bUK£75.6bUK£7.8b13.4x10.6x1.1x
Fri, 09 Feb 2024UK£81.5bUK£79.2bUK£7.7b13.5x10.6x1x
Sun, 07 Jan 2024UK£90.2bUK£81.4bUK£7.8b11.7x11.5x1.1x
Tue, 05 Dec 2023UK£88.5bUK£81.4bUK£7.8b11.8x11.3x1.1x
Thu, 02 Nov 2023UK£84.7bUK£82.7bUK£7.5b12.7x11.3x1x
Sat, 30 Sep 2023UK£81.0bUK£82.7bUK£7.5b13x10.8x1x
Mon, 28 Aug 2023UK£81.1bUK£82.5bUK£7.5b13.1x10.8x1x
Wed, 26 Jul 2023UK£86.2bUK£75.8bUK£2.4b19.8x36.2x1.1x
Price to Earnings Ratio

36.2x


Total Market Cap: UK£86.2bTotal Earnings: UK£2.4bTotal Revenue: UK£75.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.1x202420252026
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 22.4x which is higher than its 3-year average PE of 17.1x.
  • 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 grown 33% per year over the last three years.
  • Meanwhile revenues for these companies have declined 6.3% 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 Market1.03%
Utilities2.52%
Water Utilities3.01%
Electric Utilities2.54%
Other Utilities2.39%
Renewable Energy1.86%
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 9.6x.
    • Analysts are expecting annual earnings growth of 22.0%, 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 88.5x.
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 Water Utilities industry is expected to see its earnings grow by 13% 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£12.572.5%
+UK£1.5b		18.6%PE19.3x
SSE SSEUK£24.882.6%
+UK£747.9m		32.1%PE24.8x
SVT Severn TrentUK£30.663.6%
+UK£320.1m		14.4%PE25x
UU. United Utilities GroupUK£13.752.3%
+UK£230.3m		23.0%PE17.4x
CNA CentricaUK£1.731.3%
+UK£104.2m		13.0%PS0.4x

Latest News

SSE
UK£24.88
SSE
7D
2.6%
1Y
32.1%
SVT
UK£30.66
Severn Trent
7D
3.6%
1Y
14.4%
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£4.94
Pennon Group
7D
3.8%
1Y
-4.2%
TEP
UK£8.80
Telecom Plus
7D
2.2%
1Y
-55.6%
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.
NG.
UK£12.57
National Grid
7D
2.5%
1Y
18.6%
BCE
UK£0.033
Beacon Energy
7D
-3.0%
1Y
n/a
UU.
UK£13.75
United Utilities Group
7D
2.3%
1Y
23.0%
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...
CNA
UK£1.73
Centrica
7D
1.3%
1Y
13.0%
Narrative Update • Jun 24

CNA: Low Carbon Partnerships And Governance Updates Will Support Future Upside

Analysts have adjusted their price targets for Centrica, with a new blended target moving modestly and anchored around recent changes that include Berenberg lifting its target to £2.30 and JPMorgan trimming its target to £2.35. These revisions reflect updated views on fair value, discount rate and assumptions for revenue growth, profit margin and future P/E.
DRX
UK£7.72
Drax Group
7D
2.1%
1Y
12.5%
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.
CINH
UK£0.043
Cindrigo Holdings
7D
-10.5%
1Y
n/a