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

U.K. (FTSE) Utilities Sector Analysis

UpdatedMay 22, 2026
DataAggregated Company Financials
Companies14
  • 7D-1.3%
  • 3M-4.3%
  • 1Y20.8%
  • YTD9.5%

Over the last 7 days, the Utilities industry has dropped 2.5%, driven by declines in SSE and National Grid of 2.0% and 0.9%, respectively. This takes the industry's 12 month performance to a gain of 18%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 May 2026UK£127.8bUK£62.2bUK£5.3b18.4x24.1x2.1x
Sun, 19 Apr 2026UK£127.7bUK£61.6bUK£4.7b22.9x27.3x2.1x
Tue, 17 Mar 2026UK£136.6bUK£61.6bUK£4.7b23.8x29.2x2.2x
Thu, 12 Feb 2026UK£132.2bUK£61.8bUK£4.8b22.2x27.3x2.1x
Sat, 10 Jan 2026UK£119.5bUK£61.8bUK£4.8b20.6x24.7x1.9x
Mon, 08 Dec 2025UK£113.4bUK£62.0bUK£4.8b18.2x23.4x1.8x
Wed, 05 Nov 2025UK£109.0bUK£62.1bUK£4.7b17.5x23x1.8x
Fri, 03 Oct 2025UK£102.2bUK£62.1bUK£4.7b16.5x21.6x1.6x
Sun, 31 Aug 2025UK£100.3bUK£62.1bUK£4.7b16x21.2x1.6x
Tue, 29 Jul 2025UK£102.4bUK£62.6bUK£4.9b17x21.1x1.6x
Thu, 26 Jun 2025UK£103.0bUK£63.0bUK£6.4b14.5x16x1.6x
Sat, 24 May 2025UK£103.3bUK£63.0bUK£6.4b14.2x16x1.6x
Mon, 21 Apr 2025UK£100.3bUK£63.8bUK£5.9b10.4x17x1.6x
Wed, 19 Mar 2025UK£90.6bUK£64.0bUK£5.9b10.1x15.4x1.4x
Fri, 14 Feb 2025UK£90.1bUK£65.7bUK£5.8b10.1x15.5x1.4x
Sun, 12 Jan 2025UK£87.7bUK£65.7bUK£5.8b10.2x15.1x1.3x
Tue, 10 Dec 2024UK£93.9bUK£65.7bUK£5.8b10.9x16.2x1.4x
Thu, 07 Nov 2024UK£93.4bUK£66.5bUK£6.1b11.4x15.4x1.4x
Sat, 05 Oct 2024UK£95.7bUK£66.5bUK£6.1b11.8x15.8x1.4x
Mon, 02 Sep 2024UK£96.7bUK£66.4bUK£6.1b12.1x16x1.5x
Wed, 31 Jul 2024UK£95.7bUK£66.4bUK£6.1b12.3x15.8x1.4x
Fri, 28 Jun 2024UK£88.2bUK£73.1bUK£8.8b13.1x10x1.2x
Sun, 26 May 2024UK£79.3bUK£73.8bUK£8.6b11.9x9.2x1.1x
Tue, 23 Apr 2024UK£83.7bUK£75.7bUK£7.8b13.6x10.7x1.1x
Thu, 21 Mar 2024UK£83.8bUK£75.7bUK£7.8b9.9x10.7x1.1x
Sat, 17 Feb 2024UK£82.4bUK£75.8bUK£7.4b13.6x11.1x1.1x
Mon, 15 Jan 2024UK£89.6bUK£81.4bUK£7.8b11.8x11.5x1.1x
Wed, 13 Dec 2023UK£89.8bUK£81.4bUK£7.8b11.9x11.5x1.1x
Fri, 10 Nov 2023UK£84.6bUK£82.7bUK£7.5b12.5x11.3x1x
Sun, 08 Oct 2023UK£79.1bUK£82.7bUK£7.5b12.7x10.5x1x
Tue, 05 Sep 2023UK£81.5bUK£82.5bUK£7.5b13x10.9x1x
Thu, 03 Aug 2023UK£82.6bUK£82.5bUK£7.5b13.1x11x1x
Sat, 01 Jul 2023UK£85.7bUK£75.8bUK£2.4b19.5x36.2x1.1x
Mon, 29 May 2023UK£87.9bUK£74.5bUK£2.4b17.5x36.9x1.2x
Price to Earnings Ratio

36.9x


Total Market Cap: UK£87.9bTotal 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 23.9x 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 2.0x.
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 5.9% 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 Market0.25%
Utilities-1.27%
Gas Utilities0%0
Renewable Energy-0.17%
Other Utilities-0.94%
Water Utilities-1.53%
Electric Utilities-2.02%
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 Other Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 16.4x.
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 11% 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
TEP Telecom PlusUK£10.582.9%
+UK£24.0m		-48.0%PE12.8x
JEL Jersey ElectricityUK£4.551.1%
+UK£1.5m		0%PE12.7x

Latest News

SVT
UK£31.00
Severn Trent
7D
-1.1%
1Y
13.1%
SSE
UK£24.09
SSE
7D
-2.0%
1Y
38.2%
YU.
UK£17.00
Yü Group
7D
-0.9%
1Y
4.9%
NG.
UK£12.79
National Grid
7D
-0.9%
1Y
17.5%
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£5.20
Pennon Group
7D
-2.6%
1Y
1.5%
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.
CNA
UK£1.99
Centrica
7D
-1.6%
1Y
25.1%
TEP
UK£10.58
Telecom Plus
7D
2.9%
1Y
-48.0%
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.
UU.
UK£13.60
United Utilities Group
7D
-1.7%
1Y
18.8%
DRX
UK£8.47
Drax Group
7D
-0.06%
1Y
33.7%
JEL
UK£4.55
Jersey Electricity
7D
1.1%
1Y
0%