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U.K. (FTSE) Utilities Sector Analysis

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies11
  • 7D-2.2%
  • 3M16.7%
  • 1Y48.5%
  • YTD15.3%

Over the last 7 days, the Utilities industry has dropped 2.2%, driven by a pullback from National Grid of 3.1%. On the other hand Cindrigo Holdings is actually up 23%. In the past year, the industry has gained 48%. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 05 Mar 2026UK£133.8bUK£61.6bUK£4.7b23.3x28.6x2.2x
Sat, 31 Jan 2026UK£123.5bUK£61.8bUK£4.8b21.2x25.5x2x
Mon, 29 Dec 2025UK£113.2bUK£61.8bUK£4.8b19.7x23.4x1.8x
Wed, 26 Nov 2025UK£112.4bUK£61.8bUK£4.8b17.2x23.6x1.8x
Fri, 24 Oct 2025UK£109.8bUK£62.1bUK£4.7b17.6x23.2x1.8x
Sun, 21 Sep 2025UK£99.3bUK£62.1bUK£4.7b18.2x21x1.6x
Tue, 19 Aug 2025UK£100.9bUK£62.1bUK£4.7b16.4x21.3x1.6x
Thu, 17 Jul 2025UK£101.1bUK£63.0bUK£6.4b14.8x15.7x1.6x
Sat, 14 Jun 2025UK£102.9bUK£63.0bUK£6.4b14.4x16x1.6x
Mon, 12 May 2025UK£99.8bUK£63.8bUK£5.9b10.5x16.9x1.6x
Wed, 09 Apr 2025UK£93.0bUK£63.9bUK£5.9b11.1x15.7x1.5x
Fri, 07 Mar 2025UK£87.1bUK£63.9bUK£5.9b9.9x14.8x1.4x
Sun, 02 Feb 2025UK£93.3bUK£65.7bUK£5.8b10.6x16.1x1.4x
Tue, 31 Dec 2024UK£91.0bUK£65.7bUK£5.8b10.5x15.7x1.4x
Thu, 28 Nov 2024UK£96.0bUK£65.6bUK£5.8b11.1x16.5x1.5x
Sat, 26 Oct 2024UK£96.1bUK£66.5bUK£6.1b11.7x15.9x1.4x
Mon, 23 Sep 2024UK£98.8bUK£66.3bUK£6.1b12x16.3x1.5x
Wed, 21 Aug 2024UK£95.8bUK£66.4bUK£6.1b12.3x15.8x1.4x
Fri, 19 Jul 2024UK£93.5bUK£73.1bUK£8.8b13.1x10.6x1.3x
Sun, 16 Jun 2024UK£88.6bUK£73.8bUK£8.8b13.1x10.1x1.2x
Tue, 14 May 2024UK£89.5bUK£75.7bUK£7.8b14.2x11.5x1.2x
Thu, 11 Apr 2024UK£81.3bUK£75.7bUK£7.8b13.1x10.4x1.1x
Sat, 09 Mar 2024UK£84.6bUK£75.6bUK£7.8b13.6x10.9x1.1x
Mon, 05 Feb 2024UK£86.1bUK£81.4bUK£7.8b12x11x1.1x
Wed, 03 Jan 2024UK£88.6bUK£81.4bUK£7.8b11.4x11.3x1.1x
Fri, 01 Dec 2023UK£88.0bUK£81.4bUK£7.8b11.8x11.3x1.1x
Sun, 29 Oct 2023UK£83.9bUK£82.7bUK£7.5b12.7x11.2x1x
Tue, 26 Sep 2023UK£83.3bUK£82.6bUK£7.5b13.1x11.1x1x
Thu, 24 Aug 2023UK£80.2bUK£82.5bUK£7.5b13x10.7x1x
Sat, 22 Jul 2023UK£86.3bUK£75.8bUK£2.4b19.5x36.2x1.1x
Mon, 19 Jun 2023UK£87.0bUK£74.5bUK£2.3b24.3x37.4x1.2x
Wed, 17 May 2023UK£92.8bUK£71.9bUK£4.1b18.5x22.5x1.3x
Fri, 14 Apr 2023UK£91.6bUK£71.9bUK£4.1b18.2x22.2x1.3x
Sun, 12 Mar 2023UK£85.8bUK£71.8bUK£4.1b18.1x20.8x1.2x
Price to Earnings Ratio

20.8x


Total Market Cap: UK£85.8bTotal Earnings: UK£4.1bTotal Revenue: UK£71.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.4x202420252026
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 28.6x which is higher than its 3-year average PE of 17.4x.
  • 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 4.3% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.0% 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-2.48%
Utilities-2.21%
Gas Utilities0%0
Water Utilities-1.10%
Electric Utilities-1.23%
Renewable Energy-1.74%
Other Utilities-2.95%
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 Other Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 16.1x.
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 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
CINH Cindrigo HoldingsUK£0.0823.1%
+UK£5.0m		n/aPS314.3x

Latest News

UU.
UK£13.61
United Utilities Group
7D
-0.9%
1Y
44.1%
DRX
UK£8.67
Drax Group
7D
-1.8%
1Y
48.2%

DRX: Neutral Stance As Battery Agreements And Buybacks Shape Future Returns

Analysts have nudged their price target on Drax Group higher to £9.50 from £9.00, reflecting updated views on revenue trends, margins and future P/E, even as recent research updates describe the shares as fairly priced with a more neutral stance. Analyst Commentary Recent research on Drax Group points to a more balanced view, with higher price targets sitting alongside rating cuts to neutral stances.
TEP
UK£13.18
Telecom Plus
7D
-3.4%
1Y
-22.0%

TEP: Stable Assumptions Will Support Stronger Future Shareholder Returns

Analysts have kept their fair value estimate for Telecom Plus steady at £23.48, citing unchanged assumptions on discount rate, revenue growth and profit margin, which together leave their long term P/E expectations broadly intact. Valuation Changes Fair Value: Held steady at £23.48, with no change in the underlying model input.
PNN
UK£5.71
Pennon Group
7D
-4.2%
1Y
44.5%

PNN: Mixed Rating Shifts And Regulatory Uncertainty Will Shape £6 Outlook

Analysts have nudged their fair value estimate for Pennon Group higher to £6.00. This reflects updated assumptions on discount rates, growth and margins following a mix of recent rating changes and price target revisions across the Street.
CNA
UK£1.93
Centrica
7D
-1.7%
1Y
31.5%

CNA: Neutral Stance Will Rely On Execution Against Tight P/E Expectations

Centrica's analyst fair value estimate has edged up to reflect higher price targets in the £2.24 to £2.32 range, with analysts citing adjusted expectations for revenue growth, improved profit margin assumptions, and a lower expected future P/E of 11.4x. Analyst Commentary Recent research has clustered Centrica's price targets in the £2.24 to £2.32 range, with several banks adjusting their numbers in quick succession.
NG.
UK£13.45
National Grid
7D
-3.1%
1Y
44.1%

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.
SSE
UK£26.53
SSE
7D
-1.2%
1Y
80.5%

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.
SVT
UK£31.94
Severn Trent
7D
-0.4%
1Y
33.1%

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.
CINH
UK£0.08
Cindrigo Holdings
7D
23.1%
1Y
n/a