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U.K. (FTSE) Utilities Sector Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies11
  • 7D1.0%
  • 3M17.8%
  • 1Y46.0%
  • YTD15.0%

The Utilities industry has stayed flat over the last week. The past year has been better, since the industry has gained 46% in that time. 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
Thu, 19 Feb 2026UK£133.5bUK£61.8bUK£4.8b22.9x27.5x2.2x
Sat, 17 Jan 2026UK£120.1bUK£61.8bUK£4.8b20.8x24.8x1.9x
Mon, 15 Dec 2025UK£111.4bUK£62.0bUK£4.8b18.2x23x1.8x
Wed, 12 Nov 2025UK£110.7bUK£61.2bUK£4.8b18x23.2x1.8x
Fri, 10 Oct 2025UK£104.9bUK£62.1bUK£4.7b16.8x22.1x1.7x
Sun, 07 Sep 2025UK£98.5bUK£62.1bUK£4.7b18.2x20.8x1.6x
Tue, 05 Aug 2025UK£104.8bUK£62.1bUK£4.7b17.1x22.1x1.7x
Thu, 03 Jul 2025UK£100.5bUK£63.0bUK£6.4b14.4x15.6x1.6x
Sat, 31 May 2025UK£101.2bUK£63.0bUK£6.4b14.2x15.7x1.6x
Mon, 28 Apr 2025UK£100.0bUK£63.8bUK£5.9b10.3x16.9x1.6x
Wed, 26 Mar 2025UK£90.5bUK£64.0bUK£5.9b10.1x15.4x1.4x
Fri, 21 Feb 2025UK£89.2bUK£65.7bUK£5.8b10x15.4x1.4x
Sun, 19 Jan 2025UK£91.5bUK£65.7bUK£5.8b10.3x15.8x1.4x
Tue, 17 Dec 2024UK£91.2bUK£65.7bUK£5.8b10.7x15.7x1.4x
Thu, 14 Nov 2024UK£92.3bUK£66.0bUK£5.6b11.3x16.6x1.4x
Sat, 12 Oct 2024UK£95.6bUK£66.5bUK£6.1b11.8x15.8x1.4x
Mon, 09 Sep 2024UK£99.1bUK£66.4bUK£6.1b12.5x16.4x1.5x
Wed, 07 Aug 2024UK£94.0bUK£66.4bUK£6.1b12.2x15.5x1.4x
Fri, 05 Jul 2024UK£91.4bUK£73.1bUK£8.8b13.1x10.4x1.3x
Sun, 02 Jun 2024UK£79.2bUK£73.8bUK£8.6b12x9.2x1.1x
Tue, 30 Apr 2024UK£84.8bUK£75.7bUK£7.8b13.8x10.9x1.1x
Thu, 28 Mar 2024UK£84.6bUK£75.7bUK£7.8b13.5x10.9x1.1x
Sat, 24 Feb 2024UK£82.3bUK£75.8bUK£7.4b13.8x11.1x1.1x
Mon, 22 Jan 2024UK£86.5bUK£81.4bUK£7.8b12x11.1x1.1x
Wed, 20 Dec 2023UK£89.0bUK£81.4bUK£7.8b11.8x11.4x1.1x
Fri, 17 Nov 2023UK£86.1bUK£80.9bUK£8.1b14.6x10.6x1.1x
Sun, 15 Oct 2023UK£82.7bUK£82.7bUK£7.5b13x11x1x
Tue, 12 Sep 2023UK£83.1bUK£82.5bUK£7.5b13.1x11.1x1x
Thu, 10 Aug 2023UK£81.4bUK£82.5bUK£7.5b13.1x10.9x1x
Sat, 08 Jul 2023UK£82.2bUK£75.8bUK£2.4b19x34.5x1.1x
Mon, 05 Jun 2023UK£87.2bUK£74.5bUK£2.3b21.5x37.5x1.2x
Wed, 03 May 2023UK£91.1bUK£71.9bUK£4.1b18.4x22x1.3x
Fri, 31 Mar 2023UK£88.1bUK£71.9bUK£4.1b17.9x21.3x1.2x
Sun, 26 Feb 2023UK£85.9bUK£71.8bUK£4.1b18.2x20.8x1.2x
Price to Earnings Ratio

20.8x


Total Market Cap: UK£85.9bTotal Earnings: UK£4.1bTotal Revenue: UK£71.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.3x202420252026
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 27.5x which is higher than its 3-year average PE of 17.3x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 5.5% per year over the last three years.
  • Meanwhile revenues for these companies have declined 4.9% 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 Market1.85%
Utilities0.95%
Water Utilities2.82%
Other Utilities1.35%
Renewable Energy0.98%
Gas Utilities0%0
Electric Utilities-1.21%
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 19.8%, 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 8.7x.
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 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£13.491.5%
+UK£969.4m		41.5%PE23.3x
UU. United Utilities GroupUK£13.503.1%
+UK£276.2m		38.5%PE22.9x
SVT Severn TrentUK£31.582.4%
+UK£225.8m		29.3%PE30.1x
PNN Pennon GroupUK£5.863.3%
+UK£87.3m		30.2%PE93.3x
CNA CentricaUK£1.960.7%
+UK£58.8m		44.2%PS0.5x

Latest News

DRX
UK£8.80
Drax Group
7D
1.1%
1Y
41.4%

DRX: Future Returns Will Depend On Rich P/E Amid Softer Margins

The analyst price target for Drax Group has shifted modestly, with the updated fair value estimate moving from £6.80 to about £7.02, as analysts factor in a slightly higher discount rate, softer revenue and margin assumptions, and a higher expected future P/E multiple. Analyst Commentary Recent research highlights a more cautious tone around Drax Group, with some bearish analysts questioning how much upside remains after the latest fair value adjustment.
UU.
UK£13.50
United Utilities Group
7D
3.1%
1Y
38.5%

United Utilities Group PLC's (LON:UU.) Intrinsic Value Is Potentially 19% Below Its Share Price

Feb 16
United Utilities Group PLC's (LON:UU.) Intrinsic Value Is Potentially 19% Below Its Share Price
JEL
UK£4.79
Jersey Electricity
7D
0.2%
1Y
10.1%
SVT
UK£31.58
Severn Trent
7D
2.4%
1Y
29.3%
TEP
UK£13.58
Telecom Plus
7D
-0.4%
1Y
-20.0%

Telecom Plus (LON:TEP) Seems To Use Debt Quite Sensibly

Feb 11
Telecom Plus (LON:TEP) Seems To Use Debt Quite Sensibly
PNN
UK£5.86
Pennon Group
7D
3.3%
1Y
30.2%

Shareholders Should Be Pleased With Pennon Group Plc's (LON:PNN) Price

Feb 11
Shareholders Should Be Pleased With Pennon Group Plc's (LON:PNN) Price
NG.
UK£13.49
National Grid
7D
1.5%
1Y
41.5%

NG.: Dividend Outlook And Regulation Will Shape Steady Future Returns

Analysts have slightly raised their price target on National Grid, citing updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E that together point to a modestly higher implied equity value. Analyst Commentary Bullish Takeaways Bullish analysts see the updated assumptions on fair value and discount rate as broadly consistent with a regulated utility earning a steady return, which they view as supportive of the slightly higher price target.
CNA
UK£1.96
Centrica
7D
0.7%
1Y
44.2%

CNA: Neutral View Will Depend On Execution And Valuation Discipline

Analysts have nudged their fair value estimate for Centrica slightly higher to £1.98 from £1.96, citing updated assumptions around revenue growth, profit margins and a modestly higher future P/E, which are consistent with recent upward price target moves from several firms. Analyst Commentary Recent updates from bullish analysts have focused on higher price targets and slightly richer valuation assumptions that they see as better aligned with current market expectations for Centrica.
SSE
UK£26.04
SSE
7D
-1.2%
1Y
75.9%

SSE: Future Earnings Visibility And Grid Investment Plans May Support Funding

The updated analyst price target for SSE edges higher as fair value nudges to £25.26, supported by a series of recent target increases from major banks citing reassessments of discount rates, profit margins and future P/E assumptions. Analyst Commentary Recent Street research on SSE clusters around higher price targets, with several major banks adjusting their fair value assumptions and reaffirming positive stances.
YU.
UK£19.30
Yü Group
7D
-0.5%
1Y
30.8%
CINH
UK£0.06
Cindrigo Holdings
7D
9.1%
1Y
n/a
MAST
UK£0.019
Quantum Data Energy
7D
-27.6%
1Y
-76.3%