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

U.K. (FTSE) Utilities Sector Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies12
  • 7D-0.8%
  • 3M11.2%
  • 1Y19.4%
  • YTD17.9%

Over the last 7 days, the Utilities industry has remained flat, although notably Drax Group gained 4.6%. As for the the longer term, the industry is up 19% over the past 12 months. 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
Tue, 16 Dec 2025UK£112.2bUK£62.0bUK£4.8b18.2x23.1x1.8x
Thu, 13 Nov 2025UK£115.1bUK£61.2bUK£4.8b17.9x24.1x1.9x
Sat, 11 Oct 2025UK£105.4bUK£62.1bUK£4.7b16.8x22.2x1.7x
Mon, 08 Sep 2025UK£98.5bUK£62.1bUK£4.7b18.2x20.8x1.6x
Wed, 06 Aug 2025UK£104.7bUK£62.1bUK£4.7b17.2x22.1x1.7x
Fri, 04 Jul 2025UK£101.7bUK£63.0bUK£6.4b14.6x15.8x1.6x
Sun, 01 Jun 2025UK£101.2bUK£63.0bUK£6.4b14.2x15.7x1.6x
Tue, 29 Apr 2025UK£100.2bUK£63.8bUK£5.9b10.3x17x1.6x
Thu, 27 Mar 2025UK£91.7bUK£64.0bUK£5.9b10.2x15.6x1.4x
Sat, 22 Feb 2025UK£89.8bUK£65.1bUK£6.0b10.1x14.9x1.4x
Mon, 20 Jan 2025UK£91.5bUK£65.7bUK£5.8b10.3x15.8x1.4x
Wed, 18 Dec 2024UK£90.9bUK£65.7bUK£5.8b10.7x15.7x1.4x
Fri, 15 Nov 2024UK£93.9bUK£65.6bUK£5.8b10.8x16.3x1.4x
Sun, 13 Oct 2024UK£95.6bUK£66.5bUK£6.1b11.8x15.8x1.4x
Tue, 10 Sep 2024UK£100.3bUK£66.4bUK£6.1b12.7x16.6x1.5x
Thu, 08 Aug 2024UK£95.1bUK£66.4bUK£6.1b12.2x15.7x1.4x
Sat, 06 Jul 2024UK£92.5bUK£73.1bUK£8.8b13.1x10.5x1.3x
Mon, 03 Jun 2024UK£79.2bUK£73.8bUK£8.6b12x9.2x1.1x
Wed, 01 May 2024UK£84.2bUK£75.7bUK£7.8b13.7x10.8x1.1x
Fri, 29 Mar 2024UK£84.3bUK£75.7bUK£7.8b13.6x10.8x1.1x
Sun, 25 Feb 2024UK£82.3bUK£75.8bUK£7.4b13.8x11.1x1.1x
Tue, 23 Jan 2024UK£86.9bUK£81.4bUK£7.8b12x11.1x1.1x
Thu, 21 Dec 2023UK£89.9bUK£81.4bUK£7.8b11.8x11.5x1.1x
Sat, 18 Nov 2023UK£87.9bUK£80.9bUK£7.9b13.4x11.2x1.1x
Mon, 16 Oct 2023UK£82.7bUK£82.7bUK£7.5b13x11x1x
Wed, 13 Sep 2023UK£83.1bUK£82.5bUK£7.5b13.1x11.1x1x
Fri, 11 Aug 2023UK£82.4bUK£82.5bUK£7.5b13.1x11x1x
Sun, 09 Jul 2023UK£82.2bUK£75.8bUK£2.4b19x34.5x1.1x
Tue, 06 Jun 2023UK£87.6bUK£74.5bUK£2.3b23.4x37.6x1.2x
Thu, 04 May 2023UK£91.3bUK£71.9bUK£4.1b18.1x22.1x1.3x
Sat, 01 Apr 2023UK£88.5bUK£71.9bUK£4.1b18.2x21.4x1.2x
Mon, 27 Feb 2023UK£85.9bUK£71.8bUK£4.1b18.2x20.8x1.2x
Wed, 25 Jan 2023UK£85.2bUK£64.9bUK£4.0b14.9x21.2x1.3x
Fri, 23 Dec 2022UK£82.9bUK£64.9bUK£4.0b13.2x20.7x1.3x
Price to Earnings Ratio

20.7x


Total Market Cap: UK£82.9bTotal Earnings: UK£4.0bTotal Revenue: UK£64.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17x202320242025
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 23.1x which is higher than its 3-year average PE of 17.0x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.8x.
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 Market1.08%
Utilities-0.82%
Renewable Energy2.75%
Gas Utilities0%0
Electric Utilities-0.52%
Other Utilities-0.70%
Water Utilities-2.19%
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 19.1%, which is higher than its past year's earnings decline of 47.4% per year.
  • Investors are most pessimistic about the Renewable Energy industry, which is trading below its 3-year average of 9.1x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is better than its past earnings decline of 47% per year.
  • In contrast, the Renewable Energy industry is expected to see its earnings decline by 22% 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
DRX Drax GroupUK£8.064.6%
+UK£121.2m		28.6%PE6.7x
TEP Telecom PlusUK£13.980.9%
+UK£9.6m		-18.7%PE16.9x
JEL Jersey ElectricityUK£4.751.1%
+UK£1.5m		8.0%PE12.4x

Latest News

JEL
UK£4.75
Jersey Electricity
7D
1.1%
1Y
8.0%
PNN
UK£5.15
Pennon Group
7D
-2.3%
1Y
-14.0%
DRX
UK£8.06
Drax Group
7D
4.6%
1Y
28.6%

DRX: Future Returns Will Depend On Lower-Priced Low Carbon Contract

Analysts have marginally trimmed their price target on Drax Group, citing slightly weaker revenue growth and profit margin expectations that outweigh a modest uplift in future valuation multiples. This reduces fair value by around £0.04 per share to approximately £6.85.
CINH
UK£0.10
Cindrigo Holdings
7D
-14.6%
1Y
n/a
CNA
UK£1.65
Centrica
7D
-1.1%
1Y
30.6%

CNA: Cost Cutting Plan Will Support Long Term Earnings Momentum

Analysts have nudged their average price target for Centrica slightly lower to about £1.96. This reflects a modest recalibration of fair value assumptions, even as they highlight potential upside from sector tailwinds, improving renewables exposure, and prospective cost cutting initiatives.
UU.
UK£11.73
United Utilities Group
7D
-1.9%
1Y
9.6%

UU.: Dividend Outlook And Regulatory Framework Will Shape Near-Term Performance

Analysts have nudged their price target on United Utilities Group higher, raising it from approximately £12.61 to £13.27 per share. This reflects improved confidence in the company’s earnings visibility and defensive cash flow profile.
SSE
UK£21.26
SSE
7D
-0.7%
1Y
31.5%

SSE: Rising Price Views Will Support Large-Scale Equity-Funded Project Pipeline

The analyst price target for SSE has been raised modestly from £23.90 to £24.24 per share, reflecting analysts’ increased confidence in the company’s revenue growth trajectory, despite slightly lower margin assumptions and a marginally higher forward earnings multiple. Analyst Commentary Recent research updates show a cluster of upward price target revisions for SSE, underpinned by confidence in its long term earnings growth and capital deployment strategy.
SVT
UK£27.02
Severn Trent
7D
-1.7%
1Y
5.0%

SVT: Dividend Policy And CEO Transition Will Shape Future Risk Reward Balance

Analysts made a modest reduction in their price target for Severn Trent, trimming it by £0.12 per share to reflect a slightly more cautious stance, while keeping their assumptions on growth, margins and valuation multiples broadly unchanged. Analyst Commentary Analysts describe the modest price target cut as a fine tuning of valuation rather than a shift in the underlying investment thesis, with the Neutral stance indicating a balanced risk reward profile at current levels.
TEP
UK£13.98
Telecom Plus
7D
0.9%
1Y
-18.7%

TEP: Interim Dividend Increase Will Support Future Shareholder Returns

Analysts have reduced their price target for Telecom Plus from £25.54 to £23.48, citing slightly lower growth and profit margin expectations as key factors in the revision. What's in the News Telecom Plus Plc proposed to increase its interim dividend to 38 pence per share for the six months ended 30 September 2025, up from 37 pence in the previous year (Key Developments).
NG.
UK£11.22
National Grid
7D
-0.7%
1Y
19.7%
OPG
UK£0.043
OPG Power Ventures
7D
-21.3%
1Y
-15.8%