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U.K. (FTSE) Utilities Sector Analysis

UpdatedSep 20, 2026
DataAggregated Company Financials
Companies12
  • 7D2.0%
  • 3M-2.2%
  • 1Y16.7%
  • YTD1.6%

National Grid is up 1.5%, leading the way for the Utilities industry, which has gained 2.0%. This takes the industry's 12 month performance to a gain of 17%. 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
Sun, 20 Sep 2026UK£118.5bUK£62.2bUK£6.4b17.4x18.6x1.9x
Tue, 18 Aug 2026UK£120.4bUK£62.2bUK£6.4b17.6x18.9x1.9x
Thu, 16 Jul 2026UK£124.4bUK£62.3bUK£5.6b18.1x22.1x2x
Sat, 13 Jun 2026UK£122.2bUK£62.2bUK£5.7b17.6x21.5x2x
Mon, 11 May 2026UK£128.5bUK£61.6bUK£4.7b23.6x27.4x2.1x
Wed, 08 Apr 2026UK£133.8bUK£61.6bUK£4.7b23x28.6x2.2x
Fri, 06 Mar 2026UK£133.9bUK£61.6bUK£4.7b23.4x28.6x2.2x
Sun, 01 Feb 2026UK£123.5bUK£61.8bUK£4.8b21.2x25.5x2x
Tue, 30 Dec 2025UK£113.8bUK£61.8bUK£4.8b19.7x23.5x1.8x
Thu, 27 Nov 2025UK£113.8bUK£61.9bUK£4.8b19.5x23.9x1.8x
Sat, 25 Oct 2025UK£110.2bUK£62.1bUK£4.7b17.6x23.2x1.8x
Mon, 22 Sep 2025UK£99.3bUK£62.1bUK£4.7b18.2x21x1.6x
Wed, 20 Aug 2025UK£100.7bUK£62.1bUK£4.7b16.4x21.3x1.6x
Fri, 18 Jul 2025UK£101.4bUK£63.0bUK£6.4b14.8x15.8x1.6x
Sun, 15 Jun 2025UK£102.9bUK£63.0bUK£6.4b14.4x16x1.6x
Tue, 13 May 2025UK£97.8bUK£63.8bUK£5.9b10.6x16.6x1.5x
Thu, 10 Apr 2025UK£91.0bUK£63.9bUK£5.9b11.1x15.4x1.4x
Sat, 08 Mar 2025UK£87.7bUK£63.9bUK£5.9b9.9x14.9x1.4x
Mon, 03 Feb 2025UK£93.3bUK£65.7bUK£5.8b10.6x16.1x1.4x
Wed, 01 Jan 2025UK£91.4bUK£65.7bUK£5.8b10.4x15.8x1.4x
Fri, 29 Nov 2024UK£96.8bUK£65.7bUK£5.8b11.1x16.7x1.5x
Sun, 27 Oct 2024UK£96.1bUK£66.5bUK£6.1b11.7x15.9x1.4x
Tue, 24 Sep 2024UK£98.8bUK£66.3bUK£6.1b12x16.3x1.5x
Thu, 22 Aug 2024UK£95.2bUK£66.4bUK£6.1b12.3x15.7x1.4x
Sat, 20 Jul 2024UK£93.5bUK£73.1bUK£8.8b12.6x10.6x1.3x
Mon, 17 Jun 2024UK£88.6bUK£73.8bUK£8.8b13.1x10.1x1.2x
Wed, 15 May 2024UK£90.5bUK£75.7bUK£7.8b14.2x11.6x1.2x
Fri, 12 Apr 2024UK£81.4bUK£75.7bUK£7.8b13.1x10.4x1.1x
Sun, 10 Mar 2024UK£84.6bUK£75.6bUK£7.8b13.6x10.9x1.1x
Tue, 06 Feb 2024UK£84.4bUK£79.2bUK£7.7b13.6x10.9x1.1x
Thu, 04 Jan 2024UK£89.0bUK£81.4bUK£7.8b11.5x11.4x1.1x
Sat, 02 Dec 2023UK£88.6bUK£81.4bUK£7.8b11.8x11.3x1.1x
Mon, 30 Oct 2023UK£83.9bUK£82.7bUK£7.5b12.7x11.2x1x
Wed, 27 Sep 2023UK£83.3bUK£82.6bUK£7.5b13.1x11.1x1x
Price to Earnings Ratio

11.1x


Total Market Cap: UK£83.3bTotal Earnings: UK£7.5bTotal Revenue: UK£82.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.3x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Utilities industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 17.3x.
  • 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 Market0.038%
Utilities2.03%
Water Utilities3.66%
Electric Utilities2.95%
Renewable Energy1.36%
Other Utilities1.12%
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 11.3x.
    • Analysts are expecting annual earnings growth of 19.6%, 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 16.7x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 20% 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 11% 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£11.481.5%
+UK£870.8m		10.9%PE17.6x
SSE SSEUK£24.323.0%
+UK£844.4m		45.9%PE24.3x
UU. United Utilities GroupUK£13.753.9%
+UK£378.9m		21.1%PE17.4x
SVT Severn TrentUK£30.544.2%
+UK£374.5m		20.3%PE24.9x
DRX Drax GroupUK£8.231.3%
+UK£35.3m		21.9%PE145.8x

Latest News

SVT
UK£30.54
Severn Trent
7D
4.2%
1Y
20.3%
SSE
UK£24.32
SSE
7D
3.0%
1Y
45.9%
DRX
UK£8.23
Drax Group
7D
1.3%
1Y
21.9%
PNN
UK£4.51
Pennon Group
7D
0.4%
1Y
-1.4%
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£8.13
Telecom Plus
7D
2.3%
1Y
-55.7%
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£1.47
Centrica
7D
-2.6%
1Y
-12.4%
NG.
UK£11.48
National Grid
7D
1.5%
1Y
10.9%
UU.
UK£13.75
United Utilities Group
7D
3.9%
1Y
21.1%
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.
YU.
UK£17.85
Yü Group
7D
2.0%
1Y
12.3%
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.