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

U.K. (FTSE) Utilities Sector Analysis

UpdatedJun 07, 2026
DataAggregated Company Financials
Companies14
  • 7D1.5%
  • 3M-7.2%
  • 1Y19.4%
  • YTD5.6%

The Utilities industry is up 1.5% in the last week, with National Grid up 1.8%. In the last 12 months, the industry was up 19%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 07 Jun 2026UK£123.2bUK£62.1bUK£5.6b17.7x21.9x2x
Tue, 05 May 2026UK£132.5bUK£61.6bUK£4.7b24.1x28.3x2.2x
Thu, 02 Apr 2026UK£131.8bUK£61.6bUK£4.7b22.8x28.1x2.1x
Sat, 28 Feb 2026UK£137.5bUK£61.6bUK£4.7b24.1x29.4x2.2x
Mon, 26 Jan 2026UK£119.1bUK£61.8bUK£4.8b20.2x24.6x1.9x
Wed, 24 Dec 2025UK£113.3bUK£62.0bUK£4.8b18x23.4x1.8x
Fri, 21 Nov 2025UK£113.1bUK£61.8bUK£4.8b17.7x23.7x1.8x
Sun, 19 Oct 2025UK£107.9bUK£62.1bUK£4.7b17.4x22.8x1.7x
Tue, 16 Sep 2025UK£100.4bUK£62.1bUK£4.7b18.4x21.2x1.6x
Thu, 14 Aug 2025UK£100.3bUK£62.1bUK£4.7b16.3x21.2x1.6x
Sat, 12 Jul 2025UK£100.2bUK£63.0bUK£6.4b14.6x15.6x1.6x
Mon, 09 Jun 2025UK£100.4bUK£63.0bUK£6.4b14.4x15.6x1.6x
Wed, 07 May 2025UK£101.8bUK£63.8bUK£5.9b10.6x17.2x1.6x
Fri, 04 Apr 2025UK£98.8bUK£63.9bUK£5.9b11.1x16.7x1.5x
Sun, 02 Mar 2025UK£91.4bUK£63.9bUK£5.9b10.2x15.5x1.4x
Tue, 28 Jan 2025UK£90.0bUK£65.7bUK£5.8b10.3x15.5x1.4x
Thu, 26 Dec 2024UK£91.0bUK£65.7bUK£5.8b10.4x15.7x1.4x
Sat, 23 Nov 2024UK£96.1bUK£65.8bUK£5.8b10.9x16.5x1.5x
Mon, 21 Oct 2024UK£99.3bUK£66.5bUK£6.1b12x16.4x1.5x
Wed, 18 Sep 2024UK£101.1bUK£66.3bUK£6.1b12.2x16.7x1.5x
Fri, 16 Aug 2024UK£96.1bUK£66.4bUK£6.1b12.2x15.9x1.4x
Sun, 14 Jul 2024UK£94.4bUK£73.1bUK£8.8b13.1x10.7x1.3x
Tue, 11 Jun 2024UK£78.5bUK£73.8bUK£8.6b12.1x9.1x1.1x
Thu, 09 May 2024UK£88.7bUK£75.7bUK£7.8b14.1x11.4x1.2x
Sat, 06 Apr 2024UK£82.1bUK£75.7bUK£7.8b13.1x10.5x1.1x
Mon, 04 Mar 2024UK£82.9bUK£75.6bUK£7.8b13.7x10.7x1.1x
Wed, 31 Jan 2024UK£86.7bUK£81.4bUK£7.8b12x11.1x1.1x
Fri, 29 Dec 2023UK£89.1bUK£81.4bUK£7.8b11.4x11.4x1.1x
Sun, 26 Nov 2023UK£87.9bUK£81.4bUK£7.8b13.3x11.2x1.1x
Tue, 24 Oct 2023UK£81.8bUK£82.7bUK£7.5b12.7x10.9x1x
Thu, 21 Sep 2023UK£85.9bUK£82.6bUK£7.5b13.3x11.4x1x
Sat, 19 Aug 2023UK£79.5bUK£82.5bUK£7.5b12.9x10.6x1x
Mon, 17 Jul 2023UK£84.1bUK£75.8bUK£2.4b19.6x35.3x1.1x
Wed, 14 Jun 2023UK£86.1bUK£74.5bUK£2.3b23.8x37x1.2x
Price to Earnings Ratio

37x


Total Market Cap: UK£86.1bTotal Earnings: UK£2.3bTotal Revenue: UK£74.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.6x202420252026
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 21.9x which is higher than its 3-year average PE of 17.6x.
  • 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 34% 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 Market-0.73%
Utilities1.49%
Electric Utilities2.94%
Other Utilities1.67%
Renewable Energy0.13%
Gas Utilities0%0
Water Utilities-0.82%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.4x.
    • Analysts are expecting annual earnings growth of 13.7%, 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 89.4x.
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 growth rate of 1.2% per year.
  • In contrast, the Water Utilities industry is expected to see its earnings grow by 12% 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
NG. National GridUK£12.181.8%
+UK£1.1b		17.3%PE18.7x
SSE SSEUK£24.003.0%
+UK£831.8m		36.6%PE22.6x
CNA CentricaUK£1.890.8%
+UK£70.0m		17.6%PS0.4x
DRX Drax GroupUK£7.950.4%
+UK£11.8m		21.0%PE36.6x

Latest News

SSE
UK£24.00
SSE
7D
3.0%
1Y
36.6%
Narrative Update • Jun 06

SSE: Higher Future P/E Multiple Will Support Bullish Long Term Outlook

Analysts have nudged their fair value estimate for SSE to £27.66 per share, reflecting updated expectations around more moderate revenue growth, firmer profit margins, and a higher assumed future P/E multiple that align with recent price target increases from several banks. Analyst Commentary Recent Street research on SSE has been mixed, with some banks lifting price targets while others are turning more cautious.
NG.
UK£12.18
National Grid
7D
1.8%
1Y
17.3%
UU.
UK£13.24
United Utilities Group
7D
-1.5%
1Y
15.7%
Narrative Update • Jun 04

UU.: Equity Raise And Infrastructure Spend Will Shape Post Repricing Outlook

Narrative update The updated analyst price target for United Utilities Group has moved from a fair value estimate of £14.07 to £15.16. Analysts cite recent target increases from several banks, along with adjustments to the discount rate, revenue growth, profit margin and future P/E assumptions.
SVT
UK£29.64
Severn Trent
7D
-0.2%
1Y
11.3%
Narrative Update • Jun 01

SVT: Dividend Policy And 3,300 GBp Views Will Guide Balanced Outlook

Analysts have nudged their average price target for Severn Trent slightly higher to around £32.12, reflecting updated assumptions on fair value, discount rates, growth, margins and future P/E multiples, informed by recent research that includes both target increases and a downgrade. Analyst Commentary Bullish Takeaways Bullish analysts are highlighting higher assessed fair value, with targets such as £33, reflecting confidence that the stock can justify a premium through consistent execution.
TEP
UK£9.86
Telecom Plus
7D
-1.8%
1Y
-52.3%
Narrative Update • Jun 01

TEP: Steady Assumptions And Slight P/E Shift Will Support Undervalued Upside

Analysts have kept their fair value estimate for Telecom Plus steady at £20.58, with only a small adjustment to the assumed future P/E multiple. This reflects fine tuning of their valuation inputs rather than a change in overall conviction.
PNN
UK£5.14
Pennon Group
7D
-0.4%
1Y
8.2%
Narrative Update • May 31

PNN: Mid £6 Repricing Will Reflect Strengthened Cash Flow Visibility

Analysts have raised their average price target on Pennon Group into the mid £6 range, with incremental increases from £6.00 to £6.36 and up to £6.50, supported by recent research that reiterates a positive stance on the stock. Analyst Commentary Recent research on Pennon Group has focused on a series of refined price targets in the £6 range, giving you a clearer sense of how analysts are framing the risk and reward around the stock.
DRX
UK£7.95
Drax Group
7D
0.4%
1Y
21.0%
CNA
UK£1.89
Centrica
7D
0.8%
1Y
17.6%
Narrative Update • May 24

CNA: Low Carbon And On Site Power Projects Will Shape Balanced Outlook

Analysts have lifted their blended price target for Centrica, with recent moves such as Berenberg's shift to £2.30 from £1.90, several JPMorgan adjustments around the £2.24 to £2.35 range, and higher targets from Goldman Sachs and RBC, reflecting updated views on revenue growth, profit margins and valuation multiples. Analyst Commentary Recent research on Centrica shows a split view, with several price target increases and a cluster of rating downgrades that revolve around execution risk, valuation and the timing of potential earnings growth.
YU.
UK£17.65
Yü Group
7D
-1.9%
1Y
1.7%
CINH
UK£0.05
Cindrigo Holdings
7D
-9.1%
1Y
n/a
JEL
UK£4.45
Jersey Electricity
7D
-1.1%
1Y
-7.3%