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U.K. (FTSE) Renewable Energy Industry Analysis

UpdatedAug 25, 2026
DataAggregated Company Financials
Companies4
  • 7D2.2%
  • 3M-11.8%
  • 1Y5.1%
  • YTD-11.2%

In the last week, the Renewable Energy industry is up 2.6%, with all of the companies up. In the last 12 months, the industry was up 5.6%. As for the next few years, earnings are expected to grow by 21% per annum.

Industry Valuation and Performance

Has the U.K. Renewable Energy Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 25 Aug 2026UK£2.8bUK£5.9bUK£58.9m8.2x47.5x0.5x
Thu, 23 Jul 2026UK£3.0bUK£6.1bUK£112.3m8.6x26.5x0.5x
Sat, 20 Jun 2026UK£2.8bUK£6.1bUK£112.0m8.3x25.1x0.5x
Mon, 18 May 2026UK£3.0bUK£6.1bUK£103.7m8.4x29.1x0.5x
Wed, 15 Apr 2026UK£3.3bUK£6.1bUK£99.9m24.4x32.7x0.5x
Fri, 13 Mar 2026UK£3.3bUK£6.1bUK£99.3m24.3x32.9x0.5x
Sun, 08 Feb 2026UK£3.3bUK£6.3bUK£435.2m8x7.6x0.5x
Tue, 06 Jan 2026UK£3.2bUK£6.3bUK£435.2m7.4x7.3x0.5x
Thu, 04 Dec 2025UK£2.9bUK£6.3bUK£435.2m6.8x6.6x0.5x
Sat, 01 Nov 2025UK£2.8bUK£6.3bUK£443.0m6.9x6.2x0.4x
Mon, 29 Sep 2025UK£2.6bUK£6.3bUK£443.0m6.6x6x0.4x
Wed, 27 Aug 2025UK£2.7bUK£6.3bUK£439.3m7x6.2x0.4x
Fri, 25 Jul 2025UK£2.6bUK£6.8bUK£558.2m6.1x4.7x0.4x
Sun, 22 Jun 2025UK£2.6bUK£6.8bUK£555.6m6.1x4.7x0.4x
Tue, 20 May 2025UK£2.5bUK£6.8bUK£555.6m6.2x4.5x0.4x
Thu, 17 Apr 2025UK£2.3bUK£6.8bUK£555.5m5.6x4.1x0.3x
Sat, 15 Mar 2025UK£2.4bUK£6.9bUK£553.7m5.2x4.3x0.3x
Mon, 10 Feb 2025UK£2.7bUK£8.2bUK£680.7m5.1x3.9x0.3x
Wed, 08 Jan 2025UK£2.9bUK£8.2bUK£680.7m6.2x4.2x0.4x
Fri, 06 Dec 2024UK£2.8bUK£8.2bUK£680.8m5.7x4.2x0.3x
Sun, 03 Nov 2024UK£2.7bUK£8.2bUK£680.9m5.6x4x0.3x
Tue, 01 Oct 2024UK£2.8bUK£8.2bUK£685.6m5.1x4x0.3x
Thu, 29 Aug 2024UK£2.8bUK£8.1bUK£677.9m7.7x4.1x0.3x
Sat, 27 Jul 2024UK£2.8bUK£8.8bUK£586.3m8.2x4.8x0.3x
Mon, 24 Jun 2024UK£2.3bUK£8.8bUK£585.1m8.9x4x0.3x
Wed, 22 May 2024UK£2.6bUK£8.8bUK£585.1m10.1x4.4x0.3x
Fri, 19 Apr 2024UK£2.2bUK£8.8bUK£585.0m10.3x3.8x0.3x
Sun, 17 Mar 2024UK£2.1bUK£8.8bUK£579.4m3.2x3.6x0.2x
Tue, 13 Feb 2024UK£1.9bUK£9.0bUK£198.1m9.3x9.8x0.2x
Thu, 11 Jan 2024UK£4.1bUK£11.1bUK£336.8m10.9x12.1x0.4x
Sat, 09 Dec 2023UK£3.9bUK£11.1bUK£336.7m10.4x11.6x0.4x
Mon, 06 Nov 2023UK£3.7bUK£11.1bUK£336.7m10.1x11.1x0.3x
Wed, 04 Oct 2023UK£3.7bUK£11.1bUK£336.5m9.8x11.1x0.3x
Fri, 01 Sep 2023UK£4.2bUK£11.0bUK£323.6m11.3x12.8x0.4x
Price to Earnings Ratio

12.8x


Total Market Cap: UK£4.2bTotal Earnings: UK£323.6mTotal Revenue: UK£11.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Renewable Energy Industry Price to Earnings3Y Average 10.4x202420252026
Current Industry PE
  • Investors are optimistic on the British Renewable Energy industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 47.8x which is higher than its 3-year average PE of 10.4x.
  • The industry is trading close to its 3-year average PS ratio of 0.38x.
Past Earnings Growth
  • The earnings for companies in the Renewable Energy industry have declined 43% per year over the last three years,
  • Revenues have also declined 19% 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 industry?

GB Market1.40%
Utilities-0.67%
Renewable Energy2.15%
Renewable Energy2.27%
Independent Power Producers and Energy Traders1.19%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 12.9x.
    • Analysts are expecting annual earnings growth of 21.9%, which is higher than its past year's earnings decline of 95.3% per year.
  • Investors are most pessimistic about the Independent Power Producers and Energy Traders industry, which is trading below its 3-year average of 11.1x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 95% per year.
  • In contrast, the Independent Power Producers and Energy Traders industry is expected to see its earnings grow by 14% 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
DRX Drax GroupUK£7.402.3%
+UK£55.5m		5.0%PE131x
YU. Yü GroupUK£17.001.2%
+UK£3.5m		6.3%PE8.2x

Latest News

DRX
UK£7.40
Drax Group
7D
2.3%
1Y
5.0%
Narrative Update • Aug 10

DRX: Future Cash Returns Look Set To Support Higher Upside

Drax Group's updated analyst price target reflects a mixed set of recent revisions, including the increase to £10.50 and reductions to about £8.14 that analysts link to adjusted fair value estimates, changes in projected profit margins and updated future P/E assumptions. Analyst Commentary Recent research on Drax Group highlights a mix of optimism and caution around the stock's valuation, profit potential and execution risks.
YU.
UK£17.00
Yü Group
7D
1.2%
1Y
6.3%
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.