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Pennon Group PlcLSE:PNN Stock Report

Market Cap UK£2.5b
Share Price
UK£5.20
UK£6.14
15.4% undervalued intrinsic discount
1Y1.0%
7D-2.8%
Portfolio Value
View

Pennon Group Plc

LSE:PNN Stock Report

Market Cap: UK£2.5b

PNN Community Fair Values

Create Narrative

See what 8 others think this stock is worth. Follow their fair value or set your own to get alerts.

Pennon Group Plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Pennon Group
Historical stock prices
Current Share PriceUK£5.20
52 Week HighUK£6.06
52 Week LowUK£4.39
Beta0.56
1 Month Change-4.32%
3 Month Change-10.58%
1 Year Change0.97%
3 Year Change-33.88%
5 Year Change-67.56%
Change since IPO171.26%

Recent News & Updates

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.
Narrative Update Apr 26

PNN: Higher £6 Range Outlook Will Reflect Reassessed Cash Flow Visibility

Analysts have nudged their price targets on Pennon Group higher, with moves such as £6.00 to £6.50 and £6.28 to £6.36. These changes underpin a modest uplift in the central valuation, supported by updated assumptions on fair value, revenue growth, profit margins and future P/E.
Narrative Update Apr 11

PNN: Refreshed £6.50 Outlook Will Temper Mixed Rating Movements

Analysts have nudged Pennon Group's implied price target higher to around £6.50, supported by refreshed models that reflect updated assumptions on revenue growth, profit margins and future P/E expectations. Analyst Commentary Recent research on Pennon Group shows a mix of optimism around valuation support and caution around execution risk, with several target price adjustments and rating changes in quick succession.
Narrative Update Mar 27

PNN: Higher £6.50 Fair Value Assumptions Will Support Bullish Re Rating

Analyst price targets for Pennon Group have moved higher, with several recent updates lifting fair value estimates toward around £6.50. This shift is supported by slightly adjusted assumptions on revenue growth, profit margins and future P/E multiples.
Narrative Update Mar 12

PNN: Mixed Rating Shifts And Modest Assumption Tweaks Will Shape Outlook

The analyst price target for Pennon Group has nudged up by £0.08 to £6.36, as analysts factor in Citi's higher £6.36 target alongside recent rating changes and modest adjustments to fair value, profit margin and future P/E assumptions. Analyst Commentary Recent research on Pennon Group reflects a mix of optimism and caution, with several rating changes and a modest adjustment to published price targets feeding into the revised consensus level.

Recent updates

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.
Narrative Update Apr 26

PNN: Higher £6 Range Outlook Will Reflect Reassessed Cash Flow Visibility

Analysts have nudged their price targets on Pennon Group higher, with moves such as £6.00 to £6.50 and £6.28 to £6.36. These changes underpin a modest uplift in the central valuation, supported by updated assumptions on fair value, revenue growth, profit margins and future P/E.
Narrative Update Apr 11

PNN: Refreshed £6.50 Outlook Will Temper Mixed Rating Movements

Analysts have nudged Pennon Group's implied price target higher to around £6.50, supported by refreshed models that reflect updated assumptions on revenue growth, profit margins and future P/E expectations. Analyst Commentary Recent research on Pennon Group shows a mix of optimism around valuation support and caution around execution risk, with several target price adjustments and rating changes in quick succession.
Narrative Update Mar 27

PNN: Higher £6.50 Fair Value Assumptions Will Support Bullish Re Rating

Analyst price targets for Pennon Group have moved higher, with several recent updates lifting fair value estimates toward around £6.50. This shift is supported by slightly adjusted assumptions on revenue growth, profit margins and future P/E multiples.
Narrative Update Mar 12

PNN: Mixed Rating Shifts And Modest Assumption Tweaks Will Shape Outlook

The analyst price target for Pennon Group has nudged up by £0.08 to £6.36, as analysts factor in Citi's higher £6.36 target alongside recent rating changes and modest adjustments to fair value, profit margin and future P/E assumptions. Analyst Commentary Recent research on Pennon Group reflects a mix of optimism and caution, with several rating changes and a modest adjustment to published price targets feeding into the revised consensus level.
Narrative Update Feb 26

PNN: Mixed Rating Shifts And Regulatory Uncertainty Will Shape £6 Outlook

Analysts have nudged their fair value estimate for Pennon Group higher to £6.00. This reflects updated assumptions on discount rates, growth and margins following a mix of recent rating changes and price target revisions across the Street.
Analysis Article Feb 11

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

There wouldn't be many who think Pennon Group Plc's ( LON:PNN ) price-to-sales (or "P/S") ratio of 2.2x is worth a...
Analysis Article Jan 22

Pennon Group (LON:PNN) Is Experiencing Growth In Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...
Analysis Article Nov 29

Pennon Group (LON:PNN) Use Of Debt Could Be Considered Risky

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article Oct 13

These Return Metrics Don't Make Pennon Group (LON:PNN) Look Too Strong

What financial metrics can indicate to us that a company is maturing or even in decline? When we see a declining return...
Analysis Article Sep 16

Not Many Are Piling Into Pennon Group Plc (LON:PNN) Just Yet

With a median price-to-sales (or "P/S") ratio of close to 2.1x in the Water Utilities industry in the United Kingdom...
Analysis Article Aug 05

Pennon Group (LON:PNN) Use Of Debt Could Be Considered Risky

LSE:PNN 1 Year Share Price vs Fair Value Explore Pennon Group's Fair Values from the Community and select yours Howard...
Analysis Article Jul 12

Pennon Group's (LON:PNN) Dividend Will Be £0.1943

Pennon Group Plc ( LON:PNN ) will pay a dividend of £0.1943 on the 4th of September. This means the annual payment is...
User avatar
New Narrative May 09

Restructuring In Water, Wastewater, Power And Retail Will Increase Efficiency

Restructuring into distinct business units could improve operational focus, efficiency, and revenue growth across segments.
Analysis Article Mar 30

Pennon Group Plc (LON:PNN) Screens Well But There Might Be A Catch

With a median price-to-sales (or "P/S") ratio of close to 1.8x in the Water Utilities industry in the United Kingdom...
Analysis Article Feb 25

A Look At The Intrinsic Value Of Pennon Group Plc (LON:PNN)

Key Insights Pennon Group's estimated fair value is UK£4.89 based on Dividend Discount Model Current share price of...
Analysis Article Jan 30

Pennon Group (LON:PNN) Has Announced A Dividend Of £0.1469

Pennon Group Plc's ( LON:PNN ) investors are due to receive a payment of £0.1469 per share on 4th of April. This makes...
Analysis Article Jan 07

Pennon Group (LON:PNN) Has Announced A Dividend Of £0.1469

The board of Pennon Group Plc ( LON:PNN ) has announced that it will pay a dividend of £0.1469 per share on the 4th of...
Analysis Article Jan 06

These 4 Measures Indicate That Pennon Group (LON:PNN) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article Oct 23

A Piece Of The Puzzle Missing From Pennon Group Plc's (LON:PNN) Share Price

There wouldn't be many who think Pennon Group Plc's ( LON:PNN ) price-to-sales (or "P/S") ratio of 1.9x is worth a...
Analysis Article Sep 06

Is There An Opportunity With Pennon Group Plc's (LON:PNN) 36% Undervaluation?

Key Insights Pennon Group's estimated fair value is UK£9.88 based on Dividend Discount Model Pennon Group is estimated...
Analysis Article Jul 12

Pennon Group (LON:PNN) Is Increasing Its Dividend To £0.3033

Pennon Group Plc ( LON:PNN ) has announced that it will be increasing its periodic dividend on the 5th of September to...
Analysis Article Jun 16

Pennon Group's (LON:PNN) Upcoming Dividend Will Be Larger Than Last Year's

Pennon Group Plc ( LON:PNN ) has announced that it will be increasing its periodic dividend on the 5th of September to...
Analysis Article Jun 04

Analysts' Revenue Estimates For Pennon Group Plc (LON:PNN) Are Surging Higher

Celebrations may be in order for Pennon Group Plc ( LON:PNN ) shareholders, with the analysts delivering a significant...
Analysis Article May 24

Pennon Group's (LON:PNN) Dividend Will Be Increased To £0.3033

Pennon Group Plc's ( LON:PNN ) periodic dividend will be increasing on the 5th of September to £0.3033, with investors...
Analysis Article May 23

What You Can Learn From Pennon Group Plc's (LON:PNN) P/S

With a median price-to-sales (or "P/S") ratio of close to 1.8x in the Water Utilities industry in the United Kingdom...
Analysis Article Mar 21

Pennon Group Plc's (LON:PNN) Intrinsic Value Is Potentially 59% Above Its Share Price

Key Insights Pennon Group's estimated fair value is UK£10.63 based on Dividend Discount Model Pennon Group's UK£6.67...
Analysis Article Jan 11

Pennon Group (LON:PNN) Has Announced A Dividend Of £0.1404

The board of Pennon Group Plc ( LON:PNN ) has announced that it will pay a dividend of £0.1404 per share on the 5th of...
Analysis Article Dec 29

Pennon Group Plc's (LON:PNN) Popularity With Investors Is Clear

When close to half the companies in the Water Utilities industry in the United Kingdom have price-to-sales ratios (or...
Analysis Article Dec 04

Pennon Group (LON:PNN) Has Announced A Dividend Of £0.1404

The board of Pennon Group Plc ( LON:PNN ) has announced that it will pay a dividend of £0.1404 per share on the 5th of...
Analysis Article Nov 26

Are Investors Undervaluing Pennon Group Plc (LON:PNN) By 24%?

Key Insights Using the Dividend Discount Model, Pennon Group fair value estimate is UK£10.06 Current share price of...
Analysis Article Sep 15

Pennon Group (LON:PNN) Seems To Be Using A Lot Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Analysis Article Aug 05

Pennon Group Plc's (LON:PNN) Intrinsic Value Is Potentially 26% Above Its Share Price

Key Insights The projected fair value for Pennon Group is UK£8.41 based on Dividend Discount Model Current share price...
Analysis Article Jul 18

Pennon Group's (LON:PNN) Shareholders Will Receive A Bigger Dividend Than Last Year

Pennon Group Plc ( LON:PNN ) will increase its dividend from last year's comparable payment on the 4th of September to...
Analysis Article Jul 04

Pennon Group (LON:PNN) Has Announced That It Will Be Increasing Its Dividend To £0.2977

Pennon Group Plc's ( LON:PNN ) dividend will be increasing from last year's payment of the same period to £0.2977 on...
Analysis Article Jun 20

Pennon Group (LON:PNN) Is Increasing Its Dividend To £0.2977

Pennon Group Plc ( LON:PNN ) has announced that it will be increasing its dividend from last year's comparable payment...

Shareholder Returns

PNNGB Water UtilitiesGB Market
7D-2.8%-1.7%0.5%
1Y1.0%13.9%18.0%

Return vs Industry: PNN underperformed the UK Water Utilities industry which returned 14% over the past year.

Return vs Market: PNN underperformed the UK Market which returned 16.8% over the past year.

Price Volatility

Is PNN's price volatile compared to industry and market?
PNN volatility
PNN Average Weekly Movement5.2%
Water Utilities Industry Average Movement5.2%
Market Average Movement5.7%
10% most volatile stocks in GB Market12.0%
10% least volatile stocks in GB Market3.1%

Stable Share Price: PNN has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: PNN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19893,600James Haslettwww.pennon-group.co.uk

Pennon Group Plc provides water and wastewater services in the United Kingdom. The company operates through two segments, Water and Non-Household Retail. Pennon Group Plc was incorporated in 1989 and is based in Exeter, the United Kingdom.

Pennon Group Plc Fundamentals Summary

How do Pennon Group's earnings and revenue compare to its market cap?
PNN fundamental statistics
Market capUK£2.45b
Earnings (TTM)UK£29.60m
Revenue (TTM)UK£1.18b
82.9x
P/E Ratio
2.1x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
PNN income statement (TTM)
RevenueUK£1.18b
Cost of RevenueUK£56.30m
Gross ProfitUK£1.12b
Other ExpensesUK£1.09b
EarningsUK£29.60m

Last Reported Earnings

Sep 30, 2025

Next Earnings Date

Jun 10, 2026

Earnings per share (EPS)0.063
Gross Margin95.22%
Net Profit Margin2.51%
Debt/Equity Ratio281.8%

How did PNN perform over the long term?

See historical performance and comparison

Dividends

5.5%
Current Dividend Yield
400%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/20 12:27
End of Day Share Price 2026/05/20 00:00
Earnings2025/09/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Pennon Group Plc is covered by 24 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dominic NashBarclays
Dominic NashBarclays
John MuskBarclays