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U.K. (FTSE) Utilities Sector Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies14
  • 7D-5.4%
  • 3M-9.3%
  • 1Y16.8%
  • YTD4.0%

Over the last 7 days, the Utilities industry has dropped 5.4%, driven by a pullback from National Grid of 6.7%. Meanwhile, Yü Group actually outperformed within the industry, gaining 5.3% in the last week. In the past year, the industry has gained 17%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Jun 2026UK£121.3bUK£62.1bUK£5.6b17.7x21.6x2x
Wed, 29 Apr 2026UK£131.2bUK£61.6bUK£4.7b22.8x28x2.1x
Fri, 27 Mar 2026UK£125.4bUK£61.6bUK£4.7b21.8x26.8x2x
Sun, 22 Feb 2026UK£132.7bUK£61.8bUK£5.0b22.8x26.5x2.1x
Tue, 20 Jan 2026UK£120.2bUK£61.8bUK£4.8b20.7x24.8x1.9x
Thu, 18 Dec 2025UK£113.8bUK£62.0bUK£4.8b18.3x23.5x1.8x
Sat, 15 Nov 2025UK£113.4bUK£61.6bUK£4.7b18x24.2x1.8x
Mon, 13 Oct 2025UK£105.4bUK£62.1bUK£4.7b16.8x22.2x1.7x
Wed, 10 Sep 2025UK£98.1bUK£62.1bUK£4.7b18.1x20.7x1.6x
Fri, 08 Aug 2025UK£103.4bUK£62.1bUK£4.7b16.8x21.8x1.7x
Sun, 06 Jul 2025UK£102.0bUK£63.0bUK£6.4b14.6x15.9x1.6x
Tue, 03 Jun 2025UK£101.2bUK£63.0bUK£6.4b14.3x15.7x1.6x
Thu, 01 May 2025UK£102.1bUK£63.8bUK£5.9b10.5x17.3x1.6x
Sat, 29 Mar 2025UK£95.1bUK£63.9bUK£5.9b11.5x16.1x1.5x
Mon, 24 Feb 2025UK£89.8bUK£65.1bUK£6.0b10.1x14.9x1.4x
Wed, 22 Jan 2025UK£92.4bUK£65.7bUK£5.8b10.4x15.9x1.4x
Fri, 20 Dec 2024UK£89.8bUK£65.7bUK£5.8b10.4x15.5x1.4x
Sun, 17 Nov 2024UK£94.1bUK£65.7bUK£5.7b10.8x16.4x1.4x
Tue, 15 Oct 2024UK£95.6bUK£66.5bUK£6.1b11.8x15.8x1.4x
Thu, 12 Sep 2024UK£100.0bUK£66.4bUK£6.1b12.6x16.5x1.5x
Sat, 10 Aug 2024UK£94.8bUK£66.4bUK£6.1b12.2x15.7x1.4x
Mon, 08 Jul 2024UK£92.5bUK£73.1bUK£8.8b13.1x10.5x1.3x
Wed, 05 Jun 2024UK£80.8bUK£73.8bUK£8.6b12.2x9.4x1.1x
Fri, 03 May 2024UK£85.0bUK£75.7bUK£7.8b13.7x10.9x1.1x
Sun, 31 Mar 2024UK£84.3bUK£75.7bUK£7.8b13.6x10.8x1.1x
Tue, 27 Feb 2024UK£81.2bUK£75.8bUK£7.4b13.7x11x1.1x
Thu, 25 Jan 2024UK£87.0bUK£81.4bUK£7.8b12x11.1x1.1x
Sat, 23 Dec 2023UK£89.4bUK£81.4bUK£7.8b11.4x11.4x1.1x
Mon, 20 Nov 2023UK£87.9bUK£80.9bUK£7.9b13.4x11.2x1.1x
Wed, 18 Oct 2023UK£83.0bUK£82.7bUK£7.5b12.9x11x1x
Fri, 15 Sep 2023UK£85.4bUK£82.5bUK£7.5b13.3x11.4x1x
Sun, 13 Aug 2023UK£81.8bUK£82.5bUK£7.5b13.1x10.9x1x
Tue, 11 Jul 2023UK£81.9bUK£75.8bUK£2.4b19x34.4x1.1x
Thu, 08 Jun 2023UK£87.2bUK£74.5bUK£2.3b22x37.5x1.2x
Price to Earnings Ratio

37.5x


Total Market Cap: UK£87.2bTotal Earnings: UK£2.3bTotal Revenue: UK£74.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.7x202420252026
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 21.6x which is higher than its 3-year average PE of 17.7x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 34% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.9% 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 Market-0.29%
Utilities-5.36%
Gas Utilities0%0
Water Utilities-2.98%
Electric Utilities-3.94%
Renewable Energy-5.59%
Other Utilities-6.63%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.3x.
    • Analysts are expecting annual earnings growth of 13.8%, which is higher than its past year's earnings decline of 39.5% 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 16.4x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings growth rate of 1.2% per year.
  • In contrast, the Water Utilities industry is expected to see its earnings grow by 12% 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£18.005.3%
+UK£15.6m		11.8%PE8.7x

Latest News

SSE
UK£23.31
SSE
7D
-4.0%
1Y
32.1%
DRX
UK£7.92
Drax Group
7D
-6.7%
1Y
19.4%
CNA
UK£1.88
Centrica
7D
-6.4%
1Y
19.3%
Narrative Update • May 24

CNA: Low Carbon And On Site Power Projects Will Shape Balanced Outlook

Analysts have lifted their blended price target for Centrica, with recent moves such as Berenberg's shift to £2.30 from £1.90, several JPMorgan adjustments around the £2.24 to £2.35 range, and higher targets from Goldman Sachs and RBC, reflecting updated views on revenue growth, profit margins and valuation multiples. Analyst Commentary Recent research on Centrica shows a split view, with several price target increases and a cluster of rating downgrades that revolve around execution risk, valuation and the timing of potential earnings growth.
YU.
UK£18.00
Yü Group
7D
5.3%
1Y
11.8%
SVT
UK£29.70
Severn Trent
7D
-5.1%
1Y
9.1%
UU.
UK£13.44
United Utilities Group
7D
-1.2%
1Y
13.8%
NG.
UK£11.96
National Grid
7D
-6.7%
1Y
14.6%
Analysis Article • May 21

We Think That There Are Some Issues For National Grid (LON:NG.) Beyond Its Promising Earnings

National Grid plc's ( LON:NG. ) healthy profit numbers didn't contain any surprises for investors. We think this is due...
PNN
UK£5.16
Pennon Group
7D
-2.5%
1Y
1.5%
Narrative Update • May 15

PNN: Higher Mid £6 Band Will Reflect Reassessed Cash Flow Visibility

Narrative Update Pennon Group's analyst price targets have edged higher into a £6.36 to £6.50 range, reflecting updated analyst assumptions around fair value, discount rate, revenue, profit margin and future P/E, and providing the basis for a modest uplift in the indicated valuation. Analyst Commentary Recent updates from major banks point to a tighter cluster of price targets for Pennon Group in the mid £6 range, with targets between 636 GBp and 650 GBp framing how analysts currently see valuation risk and opportunity.
TEP
UK£10.04
Telecom Plus
7D
-6.0%
1Y
-50.2%
Narrative Update • May 13

TEP: Cautious Assumptions On Returns Still Indicate Undervalued Upside Potential

Narrative Update on Telecom Plus Analysts have reduced their price target on Telecom Plus from approximately £23.48 to £20.58, as they now apply a slightly higher discount rate and more cautious assumptions for revenue growth, profit margins and future P/E. Valuation Changes Fair Value: reduced from £23.48 to £20.58, a decline of around 12% in the modelled estimate.