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U.K. (FTSE) Utilities Sector Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies11
  • 7D-0.7%
  • 3M18.2%
  • 1Y43.7%
  • YTD16.2%

Over the last 7 days, the Utilities industry has remained flat. As for the the longer term, the industry is up 44% 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
Wed, 25 Feb 2026UK£134.8bUK£61.8bUK£5.0b23.2x26.9x2.2x
Fri, 23 Jan 2026UK£119.0bUK£61.8bUK£4.8b20.5x24.6x1.9x
Sun, 21 Dec 2025UK£113.7bUK£62.0bUK£4.8b18.1x23.5x1.8x
Tue, 18 Nov 2025UK£116.2bUK£61.6bUK£4.7b17.9x24.8x1.9x
Thu, 16 Oct 2025UK£106.2bUK£62.1bUK£4.7b17x22.4x1.7x
Sat, 13 Sep 2025UK£100.0bUK£62.1bUK£4.7b18.4x21.1x1.6x
Mon, 11 Aug 2025UK£102.1bUK£62.1bUK£4.7b16.7x21.6x1.6x
Wed, 09 Jul 2025UK£100.7bUK£63.0bUK£6.4b14.6x15.7x1.6x
Fri, 06 Jun 2025UK£100.3bUK£63.0bUK£6.4b14.4x15.6x1.6x
Sun, 04 May 2025UK£100.9bUK£63.8bUK£5.9b10.5x17.1x1.6x
Tue, 01 Apr 2025UK£94.9bUK£63.9bUK£5.9b11.5x16.1x1.5x
Thu, 27 Feb 2025UK£91.4bUK£65.1bUK£6.0b10.1x15.2x1.4x
Sat, 25 Jan 2025UK£90.0bUK£65.7bUK£5.8b10.2x15.5x1.4x
Mon, 23 Dec 2024UK£89.9bUK£65.7bUK£5.8b10.4x15.5x1.4x
Wed, 20 Nov 2024UK£94.7bUK£65.7bUK£5.7b10.8x16.5x1.4x
Fri, 18 Oct 2024UK£99.3bUK£66.5bUK£6.1b12.1x16.4x1.5x
Sun, 15 Sep 2024UK£100.1bUK£66.4bUK£6.1b12.6x16.5x1.5x
Tue, 13 Aug 2024UK£95.1bUK£66.4bUK£6.1b12.2x15.7x1.4x
Thu, 11 Jul 2024UK£93.6bUK£73.1bUK£8.8b13.1x10.6x1.3x
Sat, 08 Jun 2024UK£78.5bUK£73.8bUK£8.6b12.1x9.1x1.1x
Mon, 06 May 2024UK£86.1bUK£75.7bUK£7.8b13.8x11x1.1x
Wed, 03 Apr 2024UK£84.5bUK£75.7bUK£7.8b13.3x10.8x1.1x
Fri, 01 Mar 2024UK£82.7bUK£75.8bUK£7.4b13.7x11.2x1.1x
Sun, 28 Jan 2024UK£86.8bUK£81.4bUK£7.8b12x11.1x1.1x
Tue, 26 Dec 2023UK£89.3bUK£81.4bUK£7.8b11.4x11.4x1.1x
Thu, 23 Nov 2023UK£88.1bUK£81.2bUK£7.9b13.6x11.2x1.1x
Sat, 21 Oct 2023UK£82.4bUK£82.7bUK£7.5b12.7x11x1x
Mon, 18 Sep 2023UK£85.0bUK£82.5bUK£7.5b13.3x11.3x1x
Wed, 16 Aug 2023UK£80.2bUK£82.5bUK£7.5b12.9x10.7x1x
Fri, 14 Jul 2023UK£83.9bUK£75.8bUK£2.4b19.6x35.2x1.1x
Sun, 11 Jun 2023UK£87.0bUK£74.5bUK£2.3b22.4x37.4x1.2x
Tue, 09 May 2023UK£92.1bUK£71.9bUK£4.1b18.3x22.3x1.3x
Thu, 06 Apr 2023UK£90.1bUK£71.9bUK£4.1b18.2x21.8x1.3x
Sat, 04 Mar 2023UK£84.8bUK£71.8bUK£4.1b18.1x20.6x1.2x
Price to Earnings Ratio

20.6x


Total Market Cap: UK£84.8bTotal Earnings: UK£4.1bTotal Revenue: UK£71.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.3x202420252026
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 26.9x which is higher than its 3-year average PE of 17.3x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 6.8% per year over the last three years.
  • Meanwhile revenues for these companies have declined 4.9% 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 Market1.22%
Utilities-0.70%
Gas Utilities0%0
Water Utilities-0.20%
Other Utilities-0.54%
Renewable Energy-0.87%
Electric Utilities-1.40%
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 19.8%, 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 8.7x.
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
UU. United Utilities GroupUK£13.670.1%
+UK£10.2m		40.4%PE23.2x
CINH Cindrigo HoldingsUK£0.0658.3%
+UK£1.7m		n/aPS255.3x

Latest News

NG.
UK£13.73
National Grid
7D
-0.3%
1Y
40.1%

NG.: Earnings Quality And Regulation Will Shape Predictable Future Returns

Analysts have adjusted their price target on National Grid to £12.47, reflecting updated views on revenue growth, profit margins and future P/E assumptions, while keeping key valuation inputs broadly unchanged. Analyst Commentary Bullish Takeaways Bullish analysts view the reaffirmed assumptions on revenue and profit margins as supportive of the revised £12.47 target and suggest the current P/E framework is still seen as appropriate for National Grid's earnings profile.
UU.
UK£13.67
United Utilities Group
7D
0.1%
1Y
40.4%

UU.: Lower Discount Rate Assumptions Will Shape Post Downgrade Risk Reward Balance

The analyst price target for United Utilities Group has edged up from £13.21 to £13.26. Analysts highlighted slightly lower discount rate assumptions and modest adjustments to growth, margin and future P/E estimates following recent research updates, including a downgrade from Morgan Stanley.
SSE
UK£26.13
SSE
7D
-1.4%
1Y
73.3%

SSE: Future Earnings Visibility Will Hinge On Offshore Wind Contract Execution

Analysts have nudged their price targets on SSE higher to £26.00, supported by updated models that reflect slightly stronger revenue growth, a marginally firmer profit margin, and a small adjustment to future P/E assumptions. Analyst Commentary Recent Street research points to a cluster of higher price targets for SSE around the £26.00 level, with several analysts fine tuning their models rather than making wholesale changes.
CNA
UK£1.91
Centrica
7D
-2.8%
1Y
27.9%
SVT
UK£32.02
Severn Trent
7D
-0.6%
1Y
28.3%

SVT: Mixed Rating Shifts And Execution Risks Will Shape Fairly Balanced Outlook

Narrative update on Severn Trent The analyst fair value estimate for Severn Trent has been nudged to £30.22 per share from £30.20, as analysts factor in a slightly higher discount rate, modest tweaks to revenue growth and margin assumptions, and a marginally higher future P/E, following a mix of recent upgrades and a downgrade in Street research. Analyst Commentary Recent Street research on Severn Trent has been mixed, with two upgrades alongside a downgrade, which feeds into the slight adjustment in the fair value estimate to £30.22 per share.
DRX
UK£8.74
Drax Group
7D
-0.2%
1Y
36.0%

DRX: Future Returns Will Depend On Rich P/E Amid Softer Margins

The analyst price target for Drax Group has shifted modestly, with the updated fair value estimate moving from £6.80 to about £7.02, as analysts factor in a slightly higher discount rate, softer revenue and margin assumptions, and a higher expected future P/E multiple. Analyst Commentary Recent research highlights a more cautious tone around Drax Group, with some bearish analysts questioning how much upside remains after the latest fair value adjustment.
JEL
UK£4.65
Jersey Electricity
7D
-3.1%
1Y
6.9%
TEP
UK£13.64
Telecom Plus
7D
-0.3%
1Y
-19.5%

Telecom Plus (LON:TEP) Seems To Use Debt Quite Sensibly

Feb 11
Telecom Plus (LON:TEP) Seems To Use Debt Quite Sensibly
YU.
UK£17.90
Yü Group
7D
-7.7%
1Y
23.0%
CINH
UK£0.065
Cindrigo Holdings
7D
8.3%
1Y
n/a