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U.K. (FTSE) Utilities Sector Analysis

UpdatedDec 26, 2025
DataAggregated Company Financials
Companies11
  • 7D-0.2%
  • 3M10.5%
  • 1Y20.8%
  • YTD19.0%

The Utilities industry has stayed flat over the last week. As for the the longer term, the industry is up 21% over the past 12 months. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 Dec 2025UK£113.2bUK£61.8bUK£4.8b19.7x23.4x1.8x
Sun, 23 Nov 2025UK£113.3bUK£61.8bUK£4.8b18.6x23.7x1.8x
Tue, 21 Oct 2025UK£107.7bUK£62.1bUK£4.7b17.3x22.7x1.7x
Thu, 18 Sep 2025UK£99.8bUK£62.1bUK£4.7b18.2x21.1x1.6x
Sat, 16 Aug 2025UK£101.5bUK£62.1bUK£4.7b16.5x21.4x1.6x
Mon, 14 Jul 2025UK£100.0bUK£63.0bUK£6.4b14.5x15.5x1.6x
Wed, 11 Jun 2025UK£101.2bUK£63.0bUK£6.4b14.3x15.7x1.6x
Fri, 09 May 2025UK£99.6bUK£63.8bUK£5.9b10.5x16.9x1.6x
Sun, 06 Apr 2025UK£96.6bUK£63.9bUK£5.9b11.1x16.3x1.5x
Tue, 04 Mar 2025UK£89.8bUK£63.9bUK£5.9b10.1x15.2x1.4x
Thu, 30 Jan 2025UK£91.6bUK£65.7bUK£5.8b10.2x15.8x1.4x
Sat, 28 Dec 2024UK£91.1bUK£65.7bUK£5.8b10.5x15.7x1.4x
Mon, 25 Nov 2024UK£96.1bUK£65.8bUK£5.8b10.9x16.5x1.5x
Wed, 23 Oct 2024UK£97.6bUK£66.5bUK£6.1b12x16.1x1.5x
Fri, 20 Sep 2024UK£98.4bUK£66.3bUK£6.1b12x16.3x1.5x
Sun, 18 Aug 2024UK£95.8bUK£66.4bUK£6.1b12.2x15.8x1.4x
Tue, 16 Jul 2024UK£92.4bUK£73.1bUK£8.8b13.1x10.5x1.3x
Thu, 13 Jun 2024UK£77.8bUK£73.8bUK£8.6b12.2x9x1.1x
Sat, 11 May 2024UK£89.9bUK£75.7bUK£7.8b14.1x11.5x1.2x
Mon, 08 Apr 2024UK£82.1bUK£75.7bUK£7.8b13.1x10.5x1.1x
Wed, 06 Mar 2024UK£84.2bUK£75.6bUK£7.8b13.6x10.8x1.1x
Fri, 02 Feb 2024UK£86.8bUK£81.4bUK£7.8b12x11.1x1.1x
Sun, 31 Dec 2023UK£89.0bUK£81.4bUK£7.8b11.4x11.4x1.1x
Tue, 28 Nov 2023UK£88.1bUK£81.4bUK£7.8b13.3x11.2x1.1x
Thu, 26 Oct 2023UK£83.7bUK£82.7bUK£7.5b12.8x11.1x1x
Sat, 23 Sep 2023UK£84.6bUK£82.6bUK£7.5b13.3x11.3x1x
Mon, 21 Aug 2023UK£79.5bUK£82.5bUK£7.5b12.9x10.6x1x
Wed, 19 Jul 2023UK£83.6bUK£75.8bUK£2.4b19.4x35.1x1.1x
Fri, 16 Jun 2023UK£85.9bUK£74.5bUK£2.3b23.4x36.9x1.2x
Sun, 14 May 2023UK£92.5bUK£71.9bUK£4.1b18.5x22.4x1.3x
Tue, 11 Apr 2023UK£91.3bUK£71.9bUK£4.1b18.3x22.1x1.3x
Thu, 09 Mar 2023UK£85.4bUK£71.8bUK£4.1b18.1x20.7x1.2x
Sat, 04 Feb 2023UK£85.5bUK£64.9bUK£4.0b14.7x21.3x1.3x
Mon, 02 Jan 2023UK£83.0bUK£64.9bUK£4.0b13.4x20.7x1.3x
Price to Earnings Ratio

20.7x


Total Market Cap: UK£83.0bTotal Earnings: UK£4.0bTotal Revenue: UK£64.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.1x20242025
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 23.4x which is higher than its 3-year average PE of 17.1x.
  • 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 Market0.35%
Utilities-0.17%
Renewable Energy2.12%
Electric Utilities0.18%
Gas Utilities0%0
Other Utilities-0.30%
Water Utilities-0.59%
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 19.2%, 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 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 26% per year.
  • In contrast, the Renewable Energy industry is expected to see its earnings decline by 23% 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£8.332.2%
+UK£61.3m		31.6%PE7x
SSE SSEUK£21.550.2%
+UK£48.3m		34.2%PE27.1x
CNA CentricaUK£1.680.6%
+UK£43.4m		30.5%PS0.4x
YU. Yü GroupUK£15.051.7%
+UK£4.2m		-16.6%PE7.2x
MAST Quantum Data EnergyUK£0.0455.3%
+UK£315.7k		-33.6%PS5x

Latest News

DRX
UK£8.33
Drax Group
7D
2.2%
1Y
31.6%

Insufficient Growth At Drax Group plc (LON:DRX) Hampers Share Price

Dec 25
Insufficient Growth At Drax Group plc (LON:DRX) Hampers Share Price
UU.
UK£11.79
United Utilities Group
7D
-0.5%
1Y
12.9%

UU.: Medium-Term Earnings And Dividend Policy Will Drive Future Performance

Analysts have nudged their price target for United Utilities Group higher to £13.27 from £12.61, reflecting slightly improved margin expectations and confidence in the company’s medium term earnings profile, despite only modest tweaks to growth and discount rate assumptions. Analyst Commentary Bullish analysts interpret the higher price target as validation that United Utilities can sustain a solid earnings trajectory, supported by improving operational efficiency and regulatory clarity.
SVT
UK£27.43
Severn Trent
7D
-0.8%
1Y
8.1%
SSE
UK£21.55
SSE
7D
0.2%
1Y
34.2%

SSE: Rising Price Views Will Support Equity Funding For Grid Investment Plans

The analyst price target for SSE has increased modestly, rising from 2,000 GBp to a range of 2,350 to 2,600 GBp, as analysts cite an improved profit margin outlook and sustained long term earnings visibility. Analyst Commentary Recent research updates reflect a broadly constructive stance on SSE, with bullish analysts lifting price targets into a 2,350 to 2,600 GBp range while maintaining positive recommendations on the shares.
CNA
UK£1.68
Centrica
7D
0.6%
1Y
30.5%
JEL
UK£4.60
Jersey Electricity
7D
-0.2%
1Y
4.5%

Jersey Electricity (LON:JEL) Will Pay A Larger Dividend Than Last Year At £0.126

Dec 19
Jersey Electricity (LON:JEL) Will Pay A Larger Dividend Than Last Year At £0.126
NG.
UK£11.38
National Grid
7D
-0.4%
1Y
20.5%

NG.: Dividend Outlook And Regulatory Outcomes Will Shape Returns Ahead

Analysts have modestly raised their price target on National Grid, reflecting a slightly higher fair value estimate of approximately $11.96 as they factor in stronger anticipated revenue growth, partially offset by a small compression in forecast profit margins and future valuation multiples. Analyst Commentary Bullish analysts view the modestly higher price target as a reflection of improving growth visibility for National Grid, particularly as regulated asset base expansion and inflation-linked mechanisms support more resilient top line progression.
TEP
UK£13.56
Telecom Plus
7D
-1.7%
1Y
-21.5%

TEP: Increased Interim Dividend Will Support Attractive Future Shareholder Returns

Analysts have nudged their price target on Telecom Plus modestly higher to reflect steady expectations for fair value, discount rates, and long term profitability, while confirming that the shares remain appropriately valued against projected growth and earnings multiples. What's in the News Proposed increase to the interim dividend to 38 pence per share for the six months ended 30 September 2025, up from 37 pence in H1 FY25 (Company announcement) Dividend scheduled to be paid on 19 December 2025 to shareholders on the register as of 5 December 2025 (Company announcement) Shares to trade ex dividend on 4 December 2025, setting the cutoff date for eligibility for the increased interim payout (Company announcement) Valuation Changes Fair Value Estimate, unchanged at £23.48 per share, indicating no revision to the intrinsic value assessment.
YU.
UK£15.05
Yü Group
7D
1.7%
1Y
-16.6%
CINH
UK£0.09
Cindrigo Holdings
7D
-2.7%
1Y
n/a
MAST
UK£0.045
Quantum Data Energy
7D
5.3%
1Y
-33.6%