Calculating The Intrinsic Value Of Telecom Plus Plc (LON:TEP)
Sep 26
U.K. (FTSE) Utilities Sector Analysis
UpdatedSep 26, 2023
DataAggregated Company Financials
Companies20
- 7D-1.6%
- 3M-3.3%
- 1Y5.1%
- YTD1.7%
Over the last 7 days, the Utilities industry has dropped 1.6%, driven by a pullback from National Grid of 1.5%. On the other hand OPG Power Ventures is actually up 29%. Over the past 12 months, the industry was up 5.1%. As for the next few years, earnings are expected to grow by 5.8% per annum.
Sector Valuation and Performance
Has the U.K. Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Sep 2023 | UK£83.3b | UK£82.6b | UK£7.5b | 13.1x | 11.1x | 1x |
| Thu, 24 Aug 2023 | UK£80.2b | UK£82.5b | UK£7.5b | 13x | 10.7x | 1x |
| Sat, 22 Jul 2023 | UK£86.3b | UK£75.8b | UK£2.4b | 19.5x | 36.2x | 1.1x |
| Mon, 19 Jun 2023 | UK£87.0b | UK£74.5b | UK£2.3b | 24.3x | 37.4x | 1.2x |
| Wed, 17 May 2023 | UK£92.8b | UK£71.9b | UK£4.1b | 18.5x | 22.5x | 1.3x |
| Fri, 14 Apr 2023 | UK£91.6b | UK£71.9b | UK£4.1b | 18.2x | 22.2x | 1.3x |
| Sun, 12 Mar 2023 | UK£85.8b | UK£71.8b | UK£4.1b | 18.1x | 20.8x | 1.2x |
| Tue, 07 Feb 2023 | UK£85.8b | UK£64.9b | UK£4.0b | 14.4x | 21.4x | 1.3x |
| Thu, 05 Jan 2023 | UK£83.4b | UK£64.9b | UK£4.0b | 13.8x | 20.8x | 1.3x |
| Sat, 03 Dec 2022 | UK£84.4b | UK£64.9b | UK£4.0b | 12.7x | 20.9x | 1.3x |
| Mon, 31 Oct 2022 | UK£76.4b | UK£60.1b | UK£3.9b | 10.6x | 19.4x | 1.3x |
| Wed, 28 Sep 2022 | UK£75.7b | UK£60.3b | UK£4.0b | 11.9x | 19x | 1.3x |
| Fri, 26 Aug 2022 | UK£89.4b | UK£60.0b | UK£4.0b | 13.3x | 22.5x | 1.5x |
| Sun, 24 Jul 2022 | UK£86.1b | UK£53.0b | UK£5.3b | 15.6x | 16.3x | 1.6x |
| Tue, 21 Jun 2022 | UK£80.8b | UK£53.0b | UK£5.3b | 14.7x | 15.3x | 1.5x |
| Thu, 19 May 2022 | UK£94.4b | UK£49.0b | UK£4.9b | 18.2x | 19.2x | 1.9x |
| Sat, 16 Apr 2022 | UK£89.8b | UK£49.0b | UK£4.9b | 19.5x | 18.2x | 1.8x |
| Mon, 14 Mar 2022 | UK£83.7b | UK£48.9b | UK£4.9b | 25.8x | 17x | 1.7x |
| Wed, 09 Feb 2022 | UK£81.3b | UK£46.2b | UK£5.0b | 25.8x | 16.3x | 1.8x |
| Fri, 07 Jan 2022 | UK£81.5b | UK£46.2b | UK£5.0b | 25x | 16.4x | 1.8x |
| Sun, 05 Dec 2021 | UK£78.7b | UK£46.2b | UK£5.0b | 23.8x | 15.8x | 1.7x |
| Tue, 02 Nov 2021 | UK£76.5b | UK£44.4b | UK£5.4b | 18.3x | 14.2x | 1.7x |
| Thu, 30 Sep 2021 | UK£72.1b | UK£44.4b | UK£5.4b | 15.2x | 13.4x | 1.6x |
| Sat, 28 Aug 2021 | UK£74.2b | UK£44.4b | UK£5.4b | 20.7x | 13.8x | 1.7x |
| Sun, 04 Jul 2021 | UK£72.1b | UK£44.4b | UK£5.4b | 20x | 13.4x | 1.6x |
| Wed, 07 Apr 2021 | UK£68.0b | UK£44.1b | UK£4.8b | 18.7x | 14.1x | 1.5x |
| Sat, 09 Jan 2021 | UK£67.4b | UK£43.6b | UK£3.3b | 26.9x | 20.2x | 1.5x |
| Fri, 02 Oct 2020 | UK£64.6b | UK£39.1b | UK£2.1b | 28.3x | 31.4x | 1.7x |
Price to Earnings Ratio
31.4x
Current Industry PE
- Investors are pessimistic on the British Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 11.1x which is lower than its 3-year average PE of 20.9x.
- The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 1.0x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have grown 54% per year over the last three years.
- Revenues for these companies have grown 28% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.K. Utilities sector?
| GB Market | -0.24% | |
| Utilities | -1.55% | |
| Gas Utilities | 12.90% | |
| Electric Utilities | -0.16% | |
| Other Utilities | -1.46% | |
| Water Utilities | -2.22% | |
| Renewable Energy | -6.57% | |
Industry PE
- Investors are most optimistic about the Water Utilities industry even though it's trading below its 3-year average PE ratio of 62.3x.
- Analysts are expecting annual earnings growth of 24.5%, which is higher than its past year's earnings decline of 99.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Water Utilities industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 99% per year.
- In contrast, the Renewable Energy industry is expected to see its earnings decline by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| OPG OPG Power Ventures | UK£0.11 | 29.4% +UK£10.0m | 81.8% | PE11.9x | |
| KIBO Kibo Energy | UK£0.00055 | 5.8% +UK£113.4k | -68.0% | PS2x | |
| FCRM Fulcrum Utility Services | UK£0.0018 | 12.9% +UK£79.9k | -97.8% | PS0.01x |
