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U.K. (FTSE) Utilities Sector Analysis

UpdatedAug 30, 2026
DataAggregated Company Financials
Companies12
  • 7D0.9%
  • 3M0.8%
  • 1Y17.9%
  • YTD3.6%

In the last week, Utilities has been flat. The past year has been better, since the industry has gained 18% in that time. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 31 Aug 2026UK£120.9bUK£62.2bUK£6.4b18x19x1.9x
Wed, 29 Jul 2026UK£121.4bUK£62.3bUK£6.4b17.5x18.9x1.9x
Fri, 26 Jun 2026UK£123.9bUK£62.3bUK£5.6b17.8x22x2x
Sun, 24 May 2026UK£128.2bUK£62.2bUK£5.3b18.4x24.2x2.1x
Tue, 21 Apr 2026UK£128.8bUK£61.6bUK£4.7b23x27.5x2.1x
Thu, 19 Mar 2026UK£133.3bUK£61.6bUK£4.7b22.9x28.5x2.2x
Sat, 14 Feb 2026UK£134.7bUK£61.8bUK£4.8b23.1x27.8x2.2x
Mon, 12 Jan 2026UK£119.5bUK£61.8bUK£4.8b20.6x24.7x1.9x
Wed, 10 Dec 2025UK£112.6bUK£62.0bUK£4.8b18.1x23.2x1.8x
Fri, 07 Nov 2025UK£110.4bUK£62.1bUK£4.7b17.6x23.3x1.8x
Sun, 05 Oct 2025UK£102.9bUK£62.1bUK£4.7b16.5x21.7x1.7x
Tue, 02 Sep 2025UK£98.2bUK£62.1bUK£4.7b15.5x20.7x1.6x
Thu, 31 Jul 2025UK£102.5bUK£62.6bUK£4.9b17.1x21.1x1.6x
Sat, 28 Jun 2025UK£102.8bUK£63.0bUK£6.4b14.5x16x1.6x
Mon, 26 May 2025UK£103.3bUK£63.0bUK£6.4b14.2x16x1.6x
Wed, 23 Apr 2025UK£101.2bUK£63.8bUK£5.9b10.3x17.1x1.6x
Fri, 21 Mar 2025UK£92.5bUK£64.0bUK£5.9b10.3x15.7x1.4x
Sun, 16 Feb 2025UK£89.9bUK£65.7bUK£5.8b10x15.5x1.4x
Tue, 14 Jan 2025UK£87.7bUK£65.7bUK£5.8b10.2x15.1x1.3x
Thu, 12 Dec 2024UK£91.6bUK£65.7bUK£5.8b10.8x15.8x1.4x
Sat, 09 Nov 2024UK£93.2bUK£66.0bUK£5.6b11.6x16.8x1.4x
Mon, 07 Oct 2024UK£95.6bUK£66.5bUK£6.1b11.8x15.8x1.4x
Wed, 04 Sep 2024UK£96.9bUK£66.4bUK£6.1b12.1x16x1.5x
Fri, 02 Aug 2024UK£96.1bUK£66.4bUK£6.1b12.3x15.9x1.4x
Sun, 30 Jun 2024UK£88.2bUK£73.1bUK£8.8b13.1x10x1.2x
Tue, 28 May 2024UK£79.3bUK£73.8bUK£8.6b11.9x9.2x1.1x
Thu, 25 Apr 2024UK£84.4bUK£75.7bUK£7.8b13.9x10.8x1.1x
Sat, 23 Mar 2024UK£84.3bUK£75.7bUK£7.8b9.8x10.8x1.1x
Mon, 19 Feb 2024UK£82.4bUK£75.8bUK£7.4b13.6x11.1x1.1x
Wed, 17 Jan 2024UK£89.3bUK£81.4bUK£7.8b12x11.4x1.1x
Fri, 15 Dec 2023UK£90.9bUK£81.4bUK£7.8b11.8x11.6x1.1x
Sun, 12 Nov 2023UK£84.9bUK£81.7bUK£7.4b12.9x11.5x1x
Tue, 10 Oct 2023UK£79.8bUK£82.7bUK£7.5b12.8x10.6x1x
Thu, 07 Sep 2023UK£81.1bUK£82.5bUK£7.5b12.9x10.8x1x
Price to Earnings Ratio

10.8x


Total Market Cap: UK£81.1bTotal Earnings: UK£7.5bTotal Revenue: UK£82.5bTotal 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 19.0x 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 1.9x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have declined 5.4% per year over the last three years,
  • Revenues have also declined 9.0% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.K. Utilities sector?

GB Market0.12%
Utilities0.93%
Renewable Energy3.53%
Electric Utilities2.62%
Water Utilities1.04%
Other Utilities0.032%
Gas Utilities0%0
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 10.6x.
    • Analysts are expecting annual earnings growth of 21.2%, which is higher than its past year's earnings decline of 44.1% per year.
  • Investors are most pessimistic about the Other Utilities industry, which is trading close to its 3-year average of 16.6x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings decline of 44% per year.
  • In contrast, the Other Utilities industry is expected to see its earnings grow by 10% 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
SSE SSEUK£24.492.6%
+UK£760.0m		41.6%PE24.4x
DRX Drax GroupUK£7.754.1%
+UK£102.7m		19.2%PE137.3x
SVT Severn TrentUK£31.461.0%
+UK£96.6m		21.7%PE25.6x
PNN Pennon GroupUK£4.793.7%
+UK£81.1m		1.1%PE24.7x
CNA CentricaUK£1.551.0%
+UK£67.9m		-3.4%PE9.9x

Latest News

SSE
UK£24.49
SSE
7D
2.6%
1Y
41.6%
PNN
UK£4.79
Pennon Group
7D
3.7%
1Y
1.1%
Narrative Update • Aug 25

PNN: Supportive Regulation Will Underpin Cash Flow Visibility And Dividend Appeal

Pennon Group's analyst price target has been trimmed in line with a slightly lower fair value estimate of £5.77 and a modestly higher discount rate, as analysts factor in the recent series of reduced Street targets around £5.50 to £6.50, within what they describe as a more supportive UK water regulatory backdrop. Analyst Commentary Pennon Group sits in the middle of a cluster of recent Street views that point to a more supportive UK water regulatory backdrop, while still reflecting some caution in price targets.
TEP
UK£8.75
Telecom Plus
7D
0.5%
1Y
-51.7%
Narrative Update • Aug 25

TEP: Higher Margin Outlook Will Support Future Upside Despite Dividend Reset

Analysts have raised their price target on Telecom Plus from £11.38 to £12.38, citing updated assumptions on the discount rate, revenue growth, profit margin and future P/E. What’s in the News for Telecom Plus Telecom Plus Plc proposed a final dividend of 12.0 pence per share for the year ended 31 March 2026, taking the total dividend for the year to 50.0 pence per share, compared with 94.0 pence per share for 2025.
CNA
UK£1.55
Centrica
7D
1.0%
1Y
-3.4%
DRX
UK£7.75
Drax Group
7D
4.1%
1Y
19.2%
Narrative Update • Aug 10

DRX: Future Cash Returns Look Set To Support Higher Upside

Drax Group's updated analyst price target reflects a mixed set of recent revisions, including the increase to £10.50 and reductions to about £8.14 that analysts link to adjusted fair value estimates, changes in projected profit margins and updated future P/E assumptions. Analyst Commentary Recent research on Drax Group highlights a mix of optimism and caution around the stock's valuation, profit potential and execution risks.
JEL
UK£4.35
Jersey Electricity
7D
-1.1%
1Y
-7.4%
NG.
UK£11.70
National Grid
7D
-0.09%
1Y
12.4%
UU.
UK£14.31
United Utilities Group
7D
0.5%
1Y
24.4%
Narrative Update • Aug 03

UU.: Supportive Regulation And Mixed Sentiment Will Shape Post Repricing Outcomes

United Utilities Group's analyst fair value estimate has edged higher to £15.07 from £14.80 as analysts weigh a mix of higher and lower price targets across the Street, along with updated assumptions on revenue growth, profit margins and future P/E levels. Analyst Commentary Recent research on United Utilities Group shows a mix of optimism and caution as analysts adjust price targets in light of sector regulation, revenue expectations and valuation assumptions.
SVT
UK£31.46
Severn Trent
7D
1.0%
1Y
21.7%
Narrative Update • Jul 16

SVT: Dividend Policy And Supportive Regulation Will Shape Balanced 3,500 GBp Outlook

The analyst fair value estimate for Severn Trent has moved modestly higher to £32.47 from £31.69, as analysts factor in updated assumptions on revenue growth, profit margins and future P/E multiples, against a backdrop of mixed price target revisions and a more supportive regulatory setting for UK water utilities. Analyst Commentary Recent Street research on Severn Trent reflects a mix of optimism and caution, with analysts adjusting price targets around the current fair value estimate while weighing the impact of the UK water sector's changing regulatory setting.
YU.
UK£16.60
Yü Group
7D
-1.2%
1Y
2.2%
New Narrative • Jul 15

Massive Cash Pile. Accelerating Growth. Is the Market Mispricing Yü Group?

Quick Take Yü Group (LON) has quietly become one of the UK's fastest-growing business energy suppliers. Despite holding cash equivalent to roughly one-third of its market capitalisation and analysts expecting revenue growth to accelerate from around 25% to more than 31%, the market still appears to value it like a traditional utility.