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U.K. (FTSE) Utilities Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies11
  • 7D3.5%
  • 3M11.7%
  • 1Y32.8%
  • YTD3.3%

Over the last 7 days, the Utilities industry has risen 3.5%, driven by gains from National Grid of 3.7%. This means that the industry has gained 33% over the past year. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Sat, 05 Aug 2023UK£81.9bUK£82.5bUK£7.5b13.1x10.9x1x
Mon, 03 Jul 2023UK£85.7bUK£75.8bUK£2.4b19.5x36.2x1.1x
Wed, 31 May 2023UK£88.8bUK£74.5bUK£2.4b16.1x37.3x1.2x
Fri, 28 Apr 2023UK£91.5bUK£71.9bUK£4.1b18.4x22.1x1.3x
Sun, 26 Mar 2023UK£85.4bUK£71.9bUK£4.1b17.8x20.7x1.2x
Tue, 21 Feb 2023UK£87.2bUK£70.5bUK£4.3b14x20.5x1.2x
Thu, 19 Jan 2023UK£84.6bUK£64.9bUK£4.0b13.6x21.1x1.3x
Price to Earnings Ratio

21.1x


Total Market Cap: UK£84.6bTotal Earnings: UK£4.0bTotal Revenue: UK£64.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.1x202420252026
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 24.7x which is higher than its 3-year average PE of 17.1x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 6.5% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

GB Market1.34%
Utilities3.48%
Renewable Energy4.72%
Other Utilities3.79%
Water Utilities3.47%
Electric Utilities2.61%
Gas Utilities0%0
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 19.2%, which is higher than its past year's earnings decline of 26.4% per year.
  • Investors are most pessimistic about the Renewable Energy industry, which is trading below its 3-year average of 9.0x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 19% 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 decline by 16% 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£11.933.7%
+UK£2.1b		30.2%PE20.6x
SSE SSEUK£23.132.6%
+UK£708.2m		49.6%PE28.9x
CNA CentricaUK£1.815.1%
+UK£385.8m		33.2%PS0.4x
SVT Severn TrentUK£29.073.5%
+UK£295.1m		23.0%PE27.8x
UU. United Utilities GroupUK£12.423.5%
+UK£286.4m		30.7%PE21.1x

Latest News

CNA
UK£1.81
Centrica
7D
5.1%
1Y
33.2%

CNA: Energy Transition Execution Will Shape Balanced Future Risk Reward Profile

Analysts have slightly raised their fair value estimate for Centrica from £1.97 to £1.98 per share, reflecting a mix of more cautious and more constructive views after recent rating changes and updated price targets across the sector. Analyst Commentary Recent rating changes on Centrica show a mix of optimism and caution, which helps explain why the fair value move has been incremental rather than dramatic.
UU.
UK£12.42
United Utilities Group
7D
3.5%
1Y
30.7%

UU.: Medium-Term Earnings Guidance And Dividend Policy Will Shape Future Performance

Analysts have nudged their price target on United Utilities higher to £13.27 from £12.61, citing updated assumptions on the discount rate, revenue growth, profit margins and future P/E that support a slightly richer valuation framework. Analyst Commentary Bullish Takeaways Bullish analysts see the uplift in the price target to £13.27 as consistent with updated assumptions on discount rate, revenue growth, profit margins and future P/E, which together support a richer valuation framework for United Utilities Group.
SSE
UK£23.13
SSE
7D
2.6%
1Y
49.6%

SSE: Higher Price Views Will Support Future Grid Funding Plans

The analyst price target for SSE has edged higher, with several firms lifting their targets to around £23.50 to £26.00 as analysts highlight their broader positive view on the shares. Analyst Commentary Recent research points to a cluster of higher price targets for SSE, with several bullish analysts moving their numbers into the £23.50 to £26.00 range.
TEP
UK£13.76
Telecom Plus
7D
-0.4%
1Y
-15.9%
PNN
UK£5.49
Pennon Group
7D
3.3%
1Y
7.6%
SVT
UK£29.07
Severn Trent
7D
3.5%
1Y
23.0%

Returns At Severn Trent (LON:SVT) Appear To Be Weighed Down

Jan 07
Returns At Severn Trent (LON:SVT) Appear To Be Weighed Down
DRX
UK£8.92
Drax Group
7D
4.9%
1Y
44.7%

DRX: Future Returns Will Rely On Lower-Priced Low Carbon Contract

Analysts have trimmed their price target on Drax Group slightly to reflect revised assumptions, including a fair value adjustment to £6.80, updated revenue and profit margin expectations, and a lower future P/E estimate. What's in the News Drax has signed a low carbon dispatchable Contract for Difference with the Low Carbon Contracts Company covering all four biomass units at Drax Power Station from April 2027 to March 2031, with a strike price of £109.90/MWh based on 2012 real prices (Key Developments).
NG.
UK£11.93
National Grid
7D
3.7%
1Y
30.2%

Investors Appear Satisfied With National Grid plc's (LON:NG.) Prospects

Jan 05
Investors Appear Satisfied With National Grid plc's (LON:NG.) Prospects
CINH
UK£0.087
Cindrigo Holdings
7D
-2.8%
1Y
n/a
MAST
UK£0.051
Quantum Data Energy
7D
15.3%
1Y
-33.2%