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U.K. (FTSE) Utilities Sector Analysis

UpdatedJul 12, 2026
DataAggregated Company Financials
Companies14
  • 7D-1.7%
  • 3M-8.7%
  • 1Y19.4%
  • YTD5.2%

Over the last 7 days, the Utilities industry has dropped 1.7%, driven by declines in SSE and National Grid of 3.2% and 1.4%, respectively. In contrast, Telecom Plus has gained 13%. This takes the industry's 12 month performance to a gain of 19%. 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, 12 Jul 2026UK£122.8bUK£62.3bUK£5.6b17.9x21.8x2x
Tue, 09 Jun 2026UK£121.9bUK£62.1bUK£5.6b17.5x21.7x2x
Thu, 07 May 2026UK£130.8bUK£61.6bUK£4.7b24.3x27.9x2.1x
Sat, 04 Apr 2026UK£134.5bUK£61.6bUK£4.7b23.2x28.7x2.2x
Mon, 02 Mar 2026UK£137.5bUK£61.6bUK£4.7b24.1x29.4x2.2x
Wed, 28 Jan 2026UK£122.4bUK£61.8bUK£4.8b20.9x25.3x2x
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
Price to Earnings Ratio

35.1x


Total Market Cap: UK£83.6bTotal Earnings: UK£2.4bTotal Revenue: UK£75.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.2x202420252026
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 21.8x which is higher than its 3-year average PE of 17.2x.
  • 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 Market-1.66%
Utilities-1.71%
Gas Utilities0%0
Water Utilities-0.89%
Other Utilities-1.30%
Renewable Energy-1.93%
Electric Utilities-3.22%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.5x.
    • Analysts are expecting annual earnings growth of 13.2%, 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 88.6x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 3.5% 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
TEP Telecom PlusUK£8.6112.5%
+UK£76.6m		-56.7%PE8.5x
CORO Coro EnergyUK£0.0377.1%
+UK£271.3k		-54.5%PE0.4x

Latest News

TEP
UK£8.61
Telecom Plus
7D
12.5%
1Y
-56.7%
New Narrative • Jul 07

Rising Competition And Shrinking Margins Will Test The Multiservice Model Over Time

Catalysts About Telecom Plus Telecom Plus provides bundled energy, broadband, mobile, insurance and related services through a multiservice model and a partner-led acquisition channel. What are the underlying business or industry changes driving this perspective?
NG.
UK£12.26
National Grid
7D
-1.4%
1Y
19.3%
SSE
UK£24.26
SSE
7D
-3.2%
1Y
32.3%
UU.
UK£13.44
United Utilities Group
7D
-0.4%
1Y
23.1%
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£1.71
Centrica
7D
-1.2%
1Y
10.4%
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£7.56
Drax Group
7D
-2.1%
1Y
10.5%
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.
PNN
UK£4.76
Pennon Group
7D
-1.2%
1Y
-1.7%
SVT
UK£29.60
Severn Trent
7D
-1.4%
1Y
13.1%
Narrative Update • Jun 16

SVT: Dividend Policy And Mixed 3,500 GBp Views Will Shape Balanced Outlook

Severn Trent's analyst price target has been trimmed, with the updated fair value estimate moving from £32.12 to £31.69 as analysts balance slightly higher projected revenue growth against modestly lower profit margins and a small adjustment to future P/E assumptions, reflected in recent mixed target changes from Citi, Deutsche Bank, RBC Capital and Morgan Stanley. Analyst Commentary Recent research on Severn Trent highlights a mixed but fairly balanced set of views, with some analysts trimming price targets while others lift them slightly.
CORO
UK£0.037
Coro Energy
7D
7.1%
1Y
-54.5%
YU.
UK£16.35
Yü Group
7D
-0.9%
1Y
0.3%