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UU.

United Utilities GroupLSE:UU. Stock Report

Market Cap

UK£6.8b

7D

-4.1%

1Y

13.5%

Updated

27 Sep, 2021

Data

Company Financials +
UU. fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends5/6

UU. Overview

United Utilities Group PLC provides water and wastewater services in the United Kingdom.

United Utilities Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for United Utilities Group
Historical stock prices
Current Share PriceUK£9.94
52 Week HighUK£8.30
52 Week LowUK£10.94
Beta0.26
1 Month Change-5.22%
3 Month Change1.16%
1 Year Change13.52%
3 Year Change41.06%
5 Year Change-0.58%
Change since IPO192.41%

Recent News & Updates

Shareholder Returns

UU.GB Water UtilitiesGB Market
7D-4.1%-3.8%1.6%
1Y13.5%1.7%21.7%

Return vs Industry: UU. exceeded the UK Water Utilities industry which returned 2.9% over the past year.

Return vs Market: UU. underperformed the UK Market which returned 24.1% over the past year.

Price Volatility

Is UU.'s price volatile compared to industry and market?
UU. volatility
UU. Beta0.26
Industry Beta0.30
Market Beta1

Stable Share Price: UU. is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: UU.'s weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20085,688Steve Mogfordhttps://www.unitedutilities.com

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is also involved in renewable energy generation, corporate trustee, financing, and property management activities; and the provision of waste treatment, consulting, and project management services. The company operates 42,000 kilometers of water pipes; 78,000 km of wastewater pipes; 567 wastewater treatment works; and 88 water treatment works.

United Utilities Group Fundamentals Summary

How do United Utilities Group's earnings and revenue compare to its market cap?
UU. fundamental statistics
Market CapUK£6.78b
Earnings (TTM)UK£453.40m
Revenue (TTM)UK£1.81b

15.0x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UU. income statement (TTM)
RevenueUK£1.81b
Cost of RevenueUK£164.80m
Gross ProfitUK£1.64b
ExpensesUK£1.19b
EarningsUK£453.40m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 24, 2021

Earnings per share (EPS)0.66
Gross Margin90.88%
Net Profit Margin25.08%
Debt/Equity Ratio276.9%

How did UU. perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

65%

Payout Ratio

Valuation

Is United Utilities Group undervalued compared to its fair value and its price relative to the market?

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UU. (£9.94) is trading below our estimate of fair value (£12.87)

Significantly Below Fair Value: UU. is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UU. is good value based on its PE Ratio (15x) compared to the European Water Utilities industry average (20.8x).

PE vs Market: UU. is good value based on its PE Ratio (15x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: UU.'s earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UU. is overvalued based on its PB Ratio (2.2x) compared to the XE Water Utilities industry average (1.5x).


Future Growth

How is United Utilities Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UU.'s earnings are forecast to decline over the next 3 years (-6.2% per year).

Earnings vs Market: UU.'s earnings are forecast to decline over the next 3 years (-6.2% per year).

High Growth Earnings: UU.'s earnings are forecast to decline over the next 3 years.

Revenue vs Market: UU.'s revenue (1.1% per year) is forecast to grow slower than the UK market (5.9% per year).

High Growth Revenue: UU.'s revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UU.'s Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has United Utilities Group performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UU. has high quality earnings.

Growing Profit Margin: UU.'s current net profit margins (25.1%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: UU.'s earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: UU.'s earnings growth over the past year (324.5%) exceeds its 5-year average (-14% per year).

Earnings vs Industry: UU. earnings growth over the past year (324.5%) exceeded the Water Utilities industry 0.7%.


Return on Equity

High ROE: UU.'s Return on Equity (15%) is considered low.


Financial Health

How is United Utilities Group's financial position?


Financial Position Analysis

Short Term Liabilities: UU.'s short term assets (£1.0B) exceed its short term liabilities (£995.5M).

Long Term Liabilities: UU.'s short term assets (£1.0B) do not cover its long term liabilities (£10.2B).


Debt to Equity History and Analysis

Debt Level: UU.'s debt to equity ratio (276.9%) is considered high.

Reducing Debt: UU.'s debt to equity ratio has increased from 258.1% to 276.9% over the past 5 years.

Debt Coverage: UU.'s debt is not well covered by operating cash flow (10.2%).

Interest Coverage: UU.'s interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Dividend

What is United Utilities Group current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UU.'s dividend (4.35%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: UU.'s dividend (4.35%) is in the top 25% of dividend payers in the UK market (3.93%)


Stability and Growth of Payments

Stable Dividend: UU.'s dividends per share have been stable in the past 10 years.

Growing Dividend: UU.'s dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), UU.'s dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UU.'s dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Steve Mogford (64 yo)

10.5yrs

Tenure

UK£2,940,000

Compensation

Mr. Steven Lewis Mogford, also known as Steve, has been the Chief Executive Officer of United Utilities Group PLC since March 31, 2011 and United Utilities Water Limited since March 30, 2011. He has respon...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD4.03M) is above average for companies of similar size in the UK market ($USD2.18M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: UU.'s management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: UU.'s board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UU. insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Utilities Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: United Utilities Group PLC
  • Ticker: UU.
  • Exchange: LSE
  • Founded: 2008
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: UK£6.779b
  • Shares outstanding: 681.89m
  • Website: https://www.unitedutilities.com

Number of Employees


Location

  • United Utilities Group PLC
  • Haweswater House
  • Lingley Mere Business Park
  • Warrington
  • Cheshire
  • WA5 3LP
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:14
End of Day Share Price2021/09/27 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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 here.