OTCPK:UUGW.F

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has United Utilities Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UUGW.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

UUGW.F

2.7%

US Water Utilities

2.7%

US Market


1 Year Return

8.3%

UUGW.F

8.2%

US Water Utilities

9.1%

US Market

Return vs Industry: UUGW.F matched the US Water Utilities industry which returned 8.2% over the past year.

Return vs Market: UUGW.F matched the US Market which returned 9.1% over the past year.


Shareholder returns

UUGW.FIndustryMarket
7 Day2.0%2.7%2.7%
30 Day3.8%-1.6%4.5%
90 Day-15.1%-0.02%2.3%
1 Year8.3%8.3%10.2%8.2%11.5%9.1%
3 Year-14.1%-14.1%53.2%44.3%30.6%22.0%
5 Year-28.0%-28.0%132.9%109.5%57.2%39.5%

Price Volatility Vs. Market

How volatile is United Utilities Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

58.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UUGW.F ($10.95) is trading above our estimate of fair value ($9.55)

Significantly Below Fair Value: UUGW.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UUGW.F is poor value based on its PE Ratio (58.6x) compared to the Water Utilities industry average (35.4x).

PE vs Market: UUGW.F is poor value based on its PE Ratio (58.6x) compared to the US market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: UUGW.F is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: UUGW.F is good value based on its PB Ratio (2.1x) compared to the US Water Utilities industry average (2.6x).


Next Steps

Future Growth

How is United Utilities Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UUGW.F's forecast earnings growth (25.7% per year) is above the savings rate (2.2%).

Earnings vs Market: UUGW.F's earnings (25.7% per year) are forecast to grow faster than the US market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UUGW.F's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: UUGW.F's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UUGW.F's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

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

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UUGW.F has high quality earnings.

Growing Profit Margin: UUGW.F's current net profit margins (5.7%) are lower than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: UUGW.F's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: UUGW.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UUGW.F had negative earnings growth (-70.6%) over the past year, making it difficult to compare to the Water Utilities industry average (2.3%).


Return on Equity

High ROE: UUGW.F's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is United Utilities Group's financial position?


Financial Position Analysis

Short Term Liabilities: UUGW.F's short term assets (£828.4M) do not cover its short term liabilities (£1.2B).

Long Term Liabilities: UUGW.F's short term assets (£828.4M) do not cover its long term liabilities (£9.9B).


Debt to Equity History and Analysis

Debt Level: UUGW.F's debt to equity ratio (280.4%) is considered high.

Reducing Debt: UUGW.F's debt to equity ratio has increased from 273.1% to 280.4% over the past 5 years.

Debt Coverage: UUGW.F's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: UUGW.F's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UUGW.F's dividend (4.64%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: UUGW.F's dividend (4.64%) is in the top 25% of dividend payers in the US market (4.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (272%), UUGW.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UUGW.F's dividends in 3 years are not forecast to be well covered by earnings (94.1% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Steve Mogford (62yo)

9.17yrs

Tenure

UK£2,269,000

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 ($USD2.80M) is below average for companies of similar size in the US market ($USD7.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Mogford
CEO & Executive Director9.17yrsUK£2.27m0.015% £1.2m
John Houlden
CFO & Executive Director9.58yrsUK£1.44m0.0053% £411.6k
Robert Lee
Head of Investor Relationsno datano datano data
Simon Gardiner
General Counsel & Company Secretaryno datano data0.0039% £302.7k
Louise Beardmore
Customer Services & People Director2.33yrsno datano data
Ruth Henshaw
Head of Reward & Pensionsno datano datano data
Philip Aspin
Group Controllerno datano datano data
Brendan Murphy
Treasurerno datano datano data
Paula Steer
Director of Operations Controlno datano datano data
Simon Chadwick
Digital Services & Central Operations Directorno datano datano data

9.2yrs

Average Tenure

60yo

Average Age

Experienced Management: UUGW.F's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Mogford
CEO & Executive Director9.17yrsUK£2.27m0.015% £1.2m
John Houlden
CFO & Executive Director9.58yrsUK£1.44m0.0053% £411.6k
Stephen Carter
Independent Non-Executive Director5.67yrsUK£78.00k0.00045% £34.8k
David Higgins
Chairman0.42yrno data0.00044% £34.0k
Mark Clare
Senior Independent Non-Executive Director5.83yrsUK£80.00k0.0011% £86.5k
Sara Weller
Independent Non-Executive Director8.17yrsUK£80.00k0.0016% £124.3k
Brian May
Independent Non-Executive Director7.67yrsUK£82.00k0.00044% £34.0k
Paulette Rowe
Independent Non-Executive Director2.83yrsUK£66.00k0.00044% £34.0k
Alison J. Goligher
Independent Non-Executive Director3.75yrsUK£66.00k0.00044% £34.0k

5.8yrs

Average Tenure

60yo

Average Age

Experienced Board: UUGW.F's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Utilities Group PLC
  • Ticker: UUGW.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: UK£6.257b
  • Listing Market Cap: UK£7.723b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UU.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
UUECDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
UUGW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
UULBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
UUGR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1998

Biography

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 77,000 kilometers (km) of water pipes; 77,000 km of wastewater pipes; 569 wastewater treatment works; and 88 water treatment works. It serves 3 million households and 200,000 business customers. United Utilities Group PLC is based in Warrington, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 04:31
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.