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U.K. (FTSE) Utilities Sector Analysis

UpdatedMar 21, 2026
DataAggregated Company Financials
Companies12
  • 7D-7.7%
  • 3M10.7%
  • 1Y33.9%
  • YTD8.6%

Over the last 7 days, the Utilities industry has dropped 4.7%, driven by a pullback from National Grid of 10%. In the past year, the industry has gained 36%. 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
Sat, 21 Mar 2026UK£126.0bUK£61.6bUK£4.7b21.5x26.9x2x
Mon, 16 Feb 2026UK£134.7bUK£61.8bUK£4.8b23.1x27.8x2.2x
Wed, 14 Jan 2026UK£115.7bUK£61.8bUK£4.8b19.9x23.9x1.9x
Fri, 12 Dec 2025UK£110.9bUK£62.0bUK£4.8b18.1x22.9x1.8x
Sun, 09 Nov 2025UK£110.2bUK£61.2bUK£4.8b17.3x23.1x1.8x
Tue, 07 Oct 2025UK£103.4bUK£62.1bUK£4.7b16.4x21.8x1.7x
Thu, 04 Sep 2025UK£96.7bUK£62.1bUK£4.7b17.9x20.4x1.6x
Sat, 02 Aug 2025UK£104.2bUK£62.1bUK£4.7b17.1x22x1.7x
Mon, 30 Jun 2025UK£102.8bUK£63.0bUK£6.4b14.5x16x1.6x
Wed, 28 May 2025UK£103.0bUK£63.0bUK£6.4b14.1x16x1.6x
Fri, 25 Apr 2025UK£100.1bUK£63.8bUK£5.9b10.3x17x1.6x
Sun, 23 Mar 2025UK£91.7bUK£64.0bUK£5.9b10.2x15.5x1.4x
Tue, 18 Feb 2025UK£89.7bUK£65.7bUK£5.8b10.1x15.5x1.4x
Thu, 16 Jan 2025UK£89.6bUK£65.7bUK£5.8b10.2x15.4x1.4x
Sat, 14 Dec 2024UK£92.4bUK£65.7bUK£5.8b10.8x15.9x1.4x
Mon, 11 Nov 2024UK£93.2bUK£66.0bUK£5.6b11.6x16.8x1.4x
Wed, 09 Oct 2024UK£94.7bUK£66.5bUK£6.1b11.7x15.6x1.4x
Fri, 06 Sep 2024UK£99.2bUK£66.4bUK£6.1b12.5x16.4x1.5x
Sun, 04 Aug 2024UK£97.4bUK£66.4bUK£6.1b12.3x16.1x1.5x
Tue, 02 Jul 2024UK£88.6bUK£73.1bUK£8.8b13.1x10.1x1.2x
Thu, 30 May 2024UK£76.6bUK£73.8bUK£8.6b11.8x8.9x1x
Sat, 27 Apr 2024UK£84.3bUK£75.7bUK£7.8b13.9x10.8x1.1x
Mon, 25 Mar 2024UK£84.3bUK£75.7bUK£7.8b9.8x10.8x1.1x
Wed, 21 Feb 2024UK£83.3bUK£75.8bUK£7.4b13.9x11.2x1.1x
Fri, 19 Jan 2024UK£86.1bUK£81.4bUK£7.8b12x11x1.1x
Sun, 17 Dec 2023UK£89.7bUK£81.4bUK£7.8b11.8x11.5x1.1x
Tue, 14 Nov 2023UK£84.8bUK£81.7bUK£7.4b12.9x11.5x1x
Thu, 12 Oct 2023UK£82.1bUK£82.7bUK£7.5b12.9x10.9x1x
Sat, 09 Sep 2023UK£83.0bUK£82.5bUK£7.5b13.1x11.1x1x
Mon, 07 Aug 2023UK£81.9bUK£82.5bUK£7.5b13.1x10.9x1x
Wed, 05 Jul 2023UK£86.1bUK£75.8bUK£2.4b19.9x36.4x1.1x
Fri, 02 Jun 2023UK£87.3bUK£74.5bUK£2.4b20.8x36.6x1.2x
Sun, 30 Apr 2023UK£91.5bUK£71.9bUK£4.1b18.4x22.1x1.3x
Tue, 28 Mar 2023UK£86.0bUK£71.9bUK£4.1b17.6x20.9x1.2x
Price to Earnings Ratio

20.9x


Total Market Cap: UK£86.0bTotal Earnings: UK£4.1bTotal Revenue: UK£71.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.5x202420252026
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 27.7x which is higher than its 3-year average PE of 17.5x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.1x.
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-3.50%
Utilities-7.70%
Gas Utilities0%0
Renewable Energy-0.87%
Electric Utilities-5.73%
Water Utilities-6.47%
Other Utilities-9.16%
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 19.6%, 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 16.2x.
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 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
YU. Yü GroupUK£17.202.1%
+UK£5.9m		6.8%PE8.1x
JEL Jersey ElectricityUK£4.460.5%
+UK£612.8k		2.5%PE12.4x

Latest News

YU.
UK£17.20
Yü Group
7D
2.1%
1Y
6.8%
SVT
UK£29.58
Severn Trent
7D
-6.3%
1Y
20.3%

SVT: Clustered 3,300 GBp Views Will Shape A Fairly Balanced Outlook

Severn Trent's fair value estimate has risen from £30.45 to £31.03 as analysts increase price targets toward £3,300, citing valuation as a key driver behind recent rating changes. Analyst Commentary Recent research shows a cluster of price targets around £33.00, with several firms adjusting their views while keeping that level as a reference point.
DRX
UK£8.77
Drax Group
7D
-1.0%
1Y
49.1%

DRX: Future Returns Will Rely On Execution Risks At Rich P/E

Analysts have nudged their fair value estimate for Drax Group modestly higher, alongside a raised price target to £9.50. This reflects updated assumptions on discount rates, revenue trends, margins and future P/E after recent downgrades that frame the shares as more fairly priced on current information.
CNA
UK£2.03
Centrica
7D
-2.0%
1Y
40.6%

CNA: Fair View Balances Low Carbon Upside With Fewer Near Term Catalysts

The analyst price target for Centrica has edged higher to reflect a modest uplift in fair value to £2.05 and a slightly richer future P/E assumption, as analysts balance higher UK low carbon and gas price tailwinds against recent share gains and fewer near term catalysts. Analyst Commentary Recent research on Centrica shows a split between bullish and bearish analysts, with several raising price targets while others have turned more cautious after the share price recovery and completion of the buyback.
PNN
UK£5.08
Pennon Group
7D
-7.1%
1Y
15.2%

PNN: Mixed Rating Shifts And Modest Assumption Tweaks Will Shape Outlook

The analyst price target for Pennon Group has nudged up by £0.08 to £6.36, as analysts factor in Citi's higher £6.36 target alongside recent rating changes and modest adjustments to fair value, profit margin and future P/E assumptions. Analyst Commentary Recent research on Pennon Group reflects a mix of optimism and caution, with several rating changes and a modest adjustment to published price targets feeding into the revised consensus level.
TEP
UK£12.96
Telecom Plus
7D
-3.6%
1Y
-25.9%

TEP: Unchanged Fundamentals Will Support Stronger Future Shareholder Returns

Analysts have kept their fair value estimate for Telecom Plus steady at £23.48, reflecting unchanged assumptions for growth, profitability and future P/E that collectively support a stable price target outlook. Valuation Changes Fair Value: £23.48 is unchanged, indicating no revision to the central valuation for Telecom Plus.
UU.
UK£12.67
United Utilities Group
7D
-6.4%
1Y
29.4%

UU.: Revised Discount Rate And P/E Will Guide Post Downgrade Risk Balance

Analysts have lifted their price target for United Utilities Group by £0.25 to £13.51, citing updated assumptions on fair value, discount rate and future P/E, even though some recent research has shifted ratings to Hold. Analyst Commentary Bullish and bearish analysts are looking at the same set of factors for United Utilities Group but are drawing different conclusions about how much upside is left after the latest price target adjustment.
NG.
UK£12.33
National Grid
7D
-10.2%
1Y
25.6%

NG.: Margin Resilience And P/E Expectations Will Shape Predictable Future Returns

Analysts have nudged their National Grid fair value estimate higher from £12.47 to £13.14, pointing to slightly firmer profit margin expectations and a modestly higher future P/E multiple, even as revenue growth assumptions are trimmed. Analyst Commentary Bullish Takeaways Bullish analysts view the uplift in fair value to £13.14 as consistent with a business that can sustain firmer profit margins over time, which they see as supportive of the overall earnings quality story.
SSE
UK£25.73
SSE
7D
-5.8%
1Y
65.3%

SSE: Offshore Wind Contracts Will Shape Future Returns At Fairly Priced Shares

Narrative Update on SSE The updated analyst price target for SSE has increased to £26.00, with analysts noting recent target revisions from several firms as supporting this updated view. Analyst Commentary Recent research commentary on SSE has centred on higher price targets, with several bullish analysts revisiting their assumptions on valuation and execution.
JEL
UK£4.46
Jersey Electricity
7D
0.5%
1Y
2.5%